ISLAMABAD, Sep 27 (ABC): China’s rapidly expanding role in global pharmaceutical innovation is opening new avenues for Pakistan to pursue technology transfer, joint research and local manufacturing partnerships. Such cooperation could help the country build domestic capabilities rather than remain heavily dependent on imported pharmaceutical technologies and inputs.
The opportunity has gained significance as Chinese-developed drugs attract growing international interest. Official Chinese data show that innovative-drug out-licensing deals reached about $110 billion in the first half of 2026 through 81 transactions. This was equivalent to around 80% of the total value recorded during all of 2025.
The deals covered 10 therapeutic areas, including oncology, metabolic, immune and neurological diseases. Buyers spanned about 20 countries and regions.
China’s National Medical Products Administration said the country accounted for about 30% of new drugs under development globally. Meanwhile, the number of clinical trials conducted there surpassed 5,000 for the first time in 2025. Of these, 2,997, or 57.5%, involved new drugs.
The momentum accelerated during 2025, when China approved 76 innovative drugs, up from 48 in 2024. More than 150 overseas licensing transactions involving Chinese innovative medicines were concluded during the year. Their potential value exceeded $130 billion, according to official data.
Pakistan eyes technology transfer, joint research
Building stronger university-industry linkages, joint research programmes and clinical-research capacity will be important for Pakistan. The country also needs mechanisms for absorbing and adapting transferred technology to develop its own innovation capabilities.
China’s growing position in global pharmaceutical innovation therefore offers Pakistan an opportunity to deepen cooperation. This comes at a time when bilateral pharmaceutical engagement is already expanding.
Experts say the bigger objective should be to use those partnerships to reduce dependence on imported inputs and technologies. Pakistan could progressively move towards local research, technology absorption, advanced manufacturing and greater participation in the global life-sciences value chain.
Speaking to Wealth Pakistan, Dr Muhammad Saalim, Assistant Professor at the Capital University of Science & Technology (CUST), Islamabad, and R&D Consultant at PsiMega2 (Pvt.) Ltd., said China’s experience offered important lessons.
He said close collaboration between academia and industry had helped China develop commercially viable innovation. PsiMega2 is a biotechnology R&D and contract research organisation.
“From my experience of studying and working in China, I believe a major strength is the close collaboration between academia and industry, allowing China to address both current and future challenges,” he said.
For Pakistan, Saalim identified technology transfer, capacity building and joint research as the most promising areas for cooperation.
“Rather than simply importing finished technologies, Pakistan could learn from China’s approach of acquiring, localising, adapting and further developing technologies,” he said.
Saalim cited China’s high-speed rail development as a broader example of technological absorption and localisation. He said a similar approach in life sciences could help Pakistan develop its own research, manufacturing and technological capabilities.
Pharma cooperation moves towards commercial projects
Recent Pakistan-China engagements indicate that pharmaceutical cooperation is already moving towards commercial projects.
The Ministry of National Health Services said a Pakistan-China pharmaceutical conference held in Islamabad in July generated 22 commercial agreements worth $629.5 million. The event also produced 84 memoranda of understanding with an estimated value of around $800 million.
The commercial agreements covered active pharmaceutical ingredients, local vaccine production, clinical trials, generic formulations, injectables and medical-device manufacturing.
The conference brought together 240 Chinese delegates representing 140 companies. It also attracted 430 Pakistani representatives from 210 local firms.
Earlier, in May 2026, Pakistani and Chinese companies signed 10 MoUs covering API manufacturing, technology transfer, vaccine collaboration and pharmaceutical investment. These agreements provided another platform for industrial cooperation.
Local production could reduce import dependence
The technology-transfer opportunity is particularly important because Pakistan imports about 95% of the raw materials used in medicine manufacturing. At the same time, the country produces nearly 85% of its pharmaceutical products domestically, according to the Ministry of National Health Services.
Greater cooperation in APIs, vaccines, biotechnology and pharmaceutical manufacturing could help Pakistan progressively increase local value addition. It could also develop the technical capabilities required for more sophisticated production.
The opportunity comes as Pakistan’s pharmaceutical industry seeks a larger international presence.
Pharmaceutical exports registered a record 34% year-on-year increase in 2025, according to the Finance Division. Meanwhile, the industry has proposed a dedicated PharmEx Pakistan platform to support market diversification, international certification and export expansion.
Saalim said the longer-term opportunity goes beyond attracting Chinese factories or importing newly developed medicines.
