Bangladesh’s active pharmaceutical ingredient (API) sector is setting ambitious goals, aiming to achieve $2 billion in exports within the next several years. Industry leaders say this vision is attainable if the government ensures supportive policies, proper infrastructure, and consistent regulatory incentives. APIs are the raw materials used in the production of finished pharmaceutical products. Currently, Bangladesh imports the majority of its API needs, primarily from countries like China and India. However, local manufacturers are increasingly investing in domestic production facilities, driven by a global demand for diversified sources and Bangladesh’s growing pharmaceutical reputation. The momentum gained from the country’s impressive growth in finished pharmaceutical exports—now reaching over 150 countries—has created an ideal foundation to scale up API production. Industry experts argue that by reducing dependence on imports, local production will improve drug security, reduce costs, and create opportunities for value-added exports. An important part of this journey is the establishment of the API Industrial Park in Munshiganj. This project, led by the government, seeks to create a specialized area for manufacturing. The park, once fully operational, will provide local pharmaceutical companies with modern facilities, utility services, and streamlined regulatory support. Several companies have already started partial operations, though further progress is needed to unlock the full potential. To reach the $2 billion export target, stakeholders are urging the government to extend tax holidays, offer duty exemptions on capital machinery and raw materials, and ensure faster approval of licenses and environmental clearances. In addition, attracting foreign direct investment and promoting joint ventures with international pharmaceutical firms are seen as vital to acquiring advanced technology and ensuring compliance with global standards. Experts also highlight the need for building a skilled workforce and strengthening R&D capabilities. Training programs in chemical engineering, quality control, and pharmaceutical manufacturing will be essential to maintaining competitiveness in the global API market. According to local industry leaders, the demand for APIs is expected to grow globally due to the expansion of healthcare systems and increased production of generic drugs. With the right policy backing, Bangladesh could position itself as a reliable API exporter, particularly in emerging markets in Africa, Latin America, and Southeast Asia. Bangladesh’s API strategy aligns with the broader goal of reducing the country’s import dependence and achieving higher export diversification. The success of this sector could not only improve the balance of trade but also create thousands of jobs and attract greater investment in the country’s pharmaceutical and chemical industries.
