Surgical industry of Pakistan dates, back to 19th century when some British doctors got their surgical instruments repaired from the skilled workers of Sialkot and thus it laid foundation to the Sialkot Surgical Industry
The world trade in medical and surgical industry is huge which goes up to 30 billion dollar. Although Pakistan fetches a very small share in the world trade, still the local industry possesses specialized skills and workers expertise which carry a century old experience in producing these sophisticated items. Pakistani products are sold in highly developed market of Germany, France, USA, Belgium etc which are also bracketed as high income markets.
This is a sector where Pakistan enjoys specialized skills. Products are exporting into high income markets of USA, Germany & France. Total world market is estimated at 30 billion USD. During 2010-2011 Pakistan exported Surgical & Medical instruments worth USD 260.60 million. This shows an increase of 13.7% over 2009-2010 export figures of 229.20 million.
The world trade in medical and surgical industry is huge which goes up to 30 Billion dollars. Although Pakistan fetches a very small share in the world trade, still the local industry possesses specialized skills and workers expertise which carry a century old experience in producing these sophisticated items. Pakistani products are sold in highly developed market of Germany, France, USA, Belgium etc. which are also bracketed as high income markets.
The average export price of Sialkot made surgical items is between dollar 1.5 to 5 (for disposable products) which is higher than the Chinese export price of USD 0.35 per item. Pakistan has no competitor in Ophthalmic handheld instruments.
The city of Sialkot is very well known particularly in Europe for its Surgical industry. There are around 2300 companies engaged in this industry which produce on average 150 million pieces per year with an estimated value of around Rs. 22 billion. Almost 95% production is export oriented. Pakistan basically produces basic disposable instruments.
The shift of emphasis in the global leading manufacturers is on high value added products. Practically Sialkot has no competitor on basic component and most of the production from Germany has shifted to Pakistan. The result is that Pakistan produces semi-finished goods which are repackaged in Germany, Europe & USA and then sold internationally at higher prices. The very low quantity is consumed locally due to low demand by public health entities and private sector hospitals. Infact, this Sialkot based industry has limited contacts with the local end users, they normally operate through bulk buyers/traders. Out of 2300 major companies 30 units are large integrated units. These bigger companies are technically advanced with lot of mechanization in their production processes. They have also diversified products into medical mechanized devices. Second category is of medium type of firms which are around 150 in numbers and they handle exports of above 100 million. The small units are 2000 in numbers and they handle export of up to 80 million.
The details of surgical instrument which are being exported is as under
- Instruments and appliances used in medical or veterinary sciences
- Instruments and appliances, used in dental sciences
- Needles, catheters, cannulas
- Syringes, with or without needles
- Oxygen therapy, artificial respiration/ therapeutic respiration
- Dentists, barbers or similar chairs and parts thereof
- Medical, surgical, dental or veterinary furniture and parts
- Dental drill engines, whether or not combined on a single base equipment
- Ophthalmic drill engines, and appliances
- Breathe appliances & gas masks, protective masks
- Tubular metal needles and needles for sutures
- Mechano-therapy application; massage app; psychological aptitude test apparatus
- Germany offers domestic market of 6.9 billion US remains the top exporter with 1.8 billion Japan 725 million Switzerland 701 million Netherland 375 million and UK 360 million. Pakistan exported goods worth US$ 34 million and ranked 27th on the list of importers to Germany.
- UK has the market 3.37 billion with USA the top exporter with 796 million, Netherlands 538 million Germany 536 million Belgium 343 million and France 225 million Pakistan exported worth US$ 24 million and ranked 17th
- France market was 3.9 billion the major supplier were USA with 921 million Germany 555 million Belgium 383 million Mexico 269 million Switzerland 226 million Pakistan ranked 32 with export of US$ 11 million.
- Brazil had domestic market of 1.1 billion. The top importers were USA 468 million Germany 145 million China 100 million Japan 83 million Netherland 43 million and Pakistan ranked 19th with export of 8 million.
- Uzbekistan: Pakistan exported worth 0.11 million however Uzbek market was 3.4 million and our competitors were South Korea = 1.5 million, UK = 1 million, China = 0.34 and Russia = 0.11. Uzbek market due to close location with Pakistan presents much potentials for Pakistani exporters to promote the product.
- USA market is quite strong with 8 billion. However there is demand in Asian countries of Russia, Lebanon and Singapore whereas 19 million markets exists in Tunisia. Pakistan can consider promoting its exports in Russia which has the market of 377 million, Lebanon = 37 million and Tunisia =19 million.
- Pakistan exported worth US$ 1.2 million. Its markets were USA, Germany, UK, Hungary & Singapore. Amongst this category, Pakistan can focus on Hungary in East Europe which has market of 162 million.
- Pakistan exports were very nominal of US$ 0.05 million, major portion went to Germany.
- Pakistan exported worth 1 million; the major five importing countries were Germany 330 million and Poland 180 million
- Pakistan exported worth 2 million and Brazil was major recipient with 0.824 million. The other important importing countries were Iran, Italy and China. The analysis of the eight product groups of Surgical indicates that Pakistani major markets are either USA or European countries however Asian and African countries particularly Uzbekistan, Tunisia, Lebanon, Russia, Iran and China have vast potentials further to this East European countries like Hungary and Poland are also potentials markets. Therefore diversification of markets is advisable for surgical exporters.
The first Investment Policy by Board of Investment (BOI) was given in 1997 which opened services, social, infrastructure and agriculture sectors for foreign and local investors. It was a major step forward for integration of Pakistan’s economy into international markets as prior to this policy; foreign investment was restricted to manufacturing sector only. The 1997 Policy laid a solid foundation for the gains in FDI inflows experienced over the subsequent decade.
Foreign Direct Investment in Pakistan increased by 2761.10 USD Million in 2016. Foreign Direct Investment in Pakistan averaged 2651.26 USD Million from 2010 until 2016, reaching an all time high of 3184.30 USD Million in 2010 and a record low of 2099.10 USD Million in 2012.