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Pharmaceutical industry struggles with energy, costs, skilled manpower
API park production remains limited despite Tk1,600cr investment
Bangladesh’s pharmaceutical industry is struggling with persistent challenges, including energy shortages, rising production costs, a lack of skilled manpower and heavy dependence on imported pharmaceutical ingredients, while the country’s only industrial park for active pharmaceutical ingredients (APIs) has yet to reach its full potential.
Industry stakeholders say the API Industrial Park, established nearly two decades ago to reduce the country’s dependence on imported pharmaceutical raw materials and strengthen the domestic supply chain, has yet to take off fully.
They also point to the park’s central effluent treatment plant (CETP), which is yet to become operational, along with inadequate and unreliable gas and electricity supplies, high operating costs and difficulties in recruiting technically skilled workers, as major obstacles to commercial production and new investment.
Industry stakeholders said that ensuring a continuous 24-hour electricity supply, reliable gas connections and access to raw materials at competitive prices is essential to making the API industry commercially viable.
The Bangladesh Small and Cottage Industries Corporation (BSCIC) established the API Industrial Park on 200 acres of land in Gazaria, Munshiganj, allocating 42 plots for 25 industrial facilities. The project began in 2008 and was completed in June 2021, with operations expected to begin in early 2022.
According to BSCIC officials, four companies are currently operational at the park — ACME Laboratories Ltd, Ibn Sina Pharmaceutical Industry PLC, Healthcare Pharmaceuticals Ltd (HPL) and UniMed UniHealth Fine Chemicals Ltd.
Three more companies — Beximco Pharmaceuticals Ltd, Pharmatech Chemicals Ltd and SK+F Pharmaceuticals Ltd — received layout approval in 2026 and are preparing to begin operations, the officials said.
Energy crisis slows production
Speaking to the Daily Sun, Md Shamsul Alam, head of plant at Ibn Sina API Industry Ltd, said the company is currently conducting trial production but has yet to receive a gas connection.
“API manufacturing is largely reaction-based, so a continuous electricity supply is essential. Relying on generators and diesel makes production costly and difficult,” he said.
Shamsul Alam said the company had been conducting research and development activities since 2023–24 and began trial production in December 2025.
Several products are currently undergoing stability testing. Once the test results are finalised, the company plans to begin commercial production this year with two or three low-volume, high-value APIs, he said.
He said high raw-material costs, particularly for materials imported from India and China, were pushing up production costs. The non-operation of the CETP was another obstacle to commercial production.
“Gas and electricity shortages are major obstacles to operating the ETP,” he said.
The company has invested nearly Tk100 crore in the project, he said. It submitted applications for 15 products to the Directorate General of Drug Administration (DGDA), of which seven have received approval.
“We initially plan to start production of three or four of these products,” he said.
Shamsul Alam said only a small number of the allocated industrial plots are currently in use, while vegetation has grown on unused plots and water lines and drainage systems are gradually becoming clogged.
He said the government should ensure easy access to raw materials at competitive prices and provide the necessary infrastructure and utility services.
“The IBN SINA API Industry Ltd plans to manufacture APIs including Ibandronate sodium, Rabeprazole sodium, Pantoprazole sodium, Linagliptin INN and Azithromycin DH. All R&D activities have been completed, and trial production is underway to ensure quality and process stability,” Shamsul Alam also said.
“There is certainly strong demand for these products in Bangladesh. Once we meet domestic demand for the products we are preparing to manufacture, we hope to export them to international markets,” he said.
He stressed the need for uninterrupted electricity, reliable gas connections and competitively priced raw materials to make the API industry commercially viable.
Skilled manpower in short supply
SM Murad Hossain, director of UniMed UniHealth Fine Chemicals Ltd, told the Daily Sun that the company had set up a small laboratory at the park and was working to expand it, but had not yet moved into full-scale production.
“We have not taken a gas connection yet, although we understand that a gas line has reached the area,” he said.
The company had initially planned to start operations in December, but that timeline might not be possible, he said.
“API production involves extensive testing, and the process takes time. We may be able to start some production by June next year,” he said.
Murad said the company had been working on the project for around three years, but progress had been slow.
“One of the main problems is the shortage of skilled people with experience in API production. Such expertise is still very limited in Bangladesh,” he said.
He said the company’s investment plans were substantial but depended heavily on international market conditions.
“Global conflicts and disruptions have affected the supply of various pharmaceutical ingredients. Some countries have stopped producing certain ingredients, creating difficulties for us in sourcing raw materials and moving ahead with our plans,” he said.
For now, the company is focusing on producing relatively simpler APIs, he said.
The Bangladesh Association of Pharmaceutical Industries is also working on the issue and trying to develop guidelines and coordinate with the government to support API production, Murad added.
API park holds huge potential
Despite the challenges, industry stakeholders say the API park has significant potential. Estimated investment in the park has already reached around Tk1,600 crore, while the project is expected to generate employment for approximately 50,000 people once fully operational.
Authorities are also keeping the door open to international investment, with foreign companies expected to be encouraged to invest through joint ventures with local firms.
Bangladesh, however, remains heavily dependent on imports, meeting around 85 per cent of its requirements for biological and non-biological small-molecule APIs from abroad at an annual cost of about $1.5 billion.
The need to strengthen domestic API production is becoming more urgent as Bangladesh prepares to graduate from the least developed country (LDC) category. The phasing out of certain patent flexibilities under the World Trade Organisation’s TRIPS framework is expected to make local API production increasingly important for the pharmaceutical sector.
Speaking to the Daily Sun, Sarwar Hossain, general manager of BSCIC’s Extension Division, said a stakeholder meeting would be held at the API park on Saturday to accelerate activities there.
“After the meeting, I can give the details. Later, we will take the necessary initiatives to resolve the crisis,” he said.
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