Bangladesh’s pharmaceutical export sector continues to show resilience, posting steady year-on-year growth in the first ten months of the 2024–25 fiscal year, despite a sharp decline in April. Export figures released by the Export Promotion Bureau (EPB) revealed that drug exports rose by 3.46% year-on-year from July 2024 to April 2025, reaching $177.42 million, up from $171.49 million in the same period a year earlier.
Sharp April Decline Raises Short-Term Concern
However, the sector experienced a sudden jolt in April 2025, when pharmaceutical exports plunged 34.25% year-on-year — from $18.16 million in April 2024 to just $11.94 million. The decline has been attributed primarily to temporary disruptions such as public holidays in key Asian markets and budget cuts to donor agencies like USAID, which traditionally fund a substantial volume of medicine purchases from Bangladesh.Despite this sharp month-to-month fall, industry insiders are downplaying concerns of any long-term slowdown.
Industry Leaders Highlight Temporary Nature of Disruptions
“The April figures are worrying, but the broader trend is still positive,” said Mohammad Ali Nawaz, Chief Financial Officer of Beximco Pharmaceuticals. He stressed that the company’s export growth has remained steady and that the decline should be viewed as an anomaly rather than a new trend. According to Nawaz, recent US tariffs—reintroduced under the Trump administration—are unlikely to be linked to the April dip. Instead, supply chain delays, holiday-induced order pauses in countries like Cambodia and Vietnam, and fiscal tightening in developed markets like the US and UK are seen as the real culprits.
Read More: UGC Plans to Allow PhD Programs in Private Universities Soon
Incepta Feels the Pressure from USAID Cuts
The situation was particularly tough for Incepta Pharmaceuticals, one of the country’s top medicine exporters. According to Arefin Ahmed, Executive Director of the company, the suspension of medicine procurement by USAID following budget cuts had a major impact.
“Since February, the funding cuts have severely disrupted our supply chain. We had to cancel two major vaccine shipments,” said Ahmed. He added that USAID had been a reliable buyer, purchasing at least Tk 10 crore worth of medicines per month, and its sudden withdrawal has affected both revenues and the company’s ability to meet essential medicine commitments domestically and internationally.
Square Pharmaceuticals Sees Good Demand, Not Worried About April Decline
While some companies are struggling, others like Square Pharmaceuticals have reported relatively strong export performance. According to Zahangir Alam, CFO of the company, “Our export orders are holding up well. We are seeing good traction internationally.” Still, Alam admitted he was unsure why the wider industry experienced such a steep downturn in April. “I have no idea why the industry saw a decline,” he said, suggesting that the slump may not be evenly distributed across all exporters.
Industry Confidence Remains High
Despite the volatility, exporters and industry leaders remain confident about the future. Bangladesh’s pharma industry has already established a strong reputation for quality, affordability, and adherence to international standards. Over 150 countries now import Bangladeshi medicines, with growing interest in generic drugs, vaccines, and oncology products. The government, too, has played a role in supporting the sector with regulatory upgrades, export incentives, and initiatives to penetrate new markets in Africa, Latin America, and the Middle East.
While April’s sudden drop in exports may have raised eyebrows, it appears to be a temporary setback rather than a structural decline. As paused markets resume operations and funding pipelines stabilize, the pharmaceutical export sector is expected to regain pace. Industry voices agree that one weak month doesn’t change the underlying strength of Bangladesh’s pharma sector—a sector that continues to grow, evolve, and position itself as a global player in affordable healthcare solutions.
Reference: The Daily Star
