Facing hassles in customs clearance, pharma exporters to Pakistan seek clarity from DGFT on norms
Pharmaceutical exporters to Pakistan are facing challenges due to a halt incustoms clearance of their shipments for over two months.
Indian Pharma exports pharmaceuticals worth over $200 million annually comprising formulations, vaccines, bulk drugs and Active Pharmaceutical Ingredients. The growth rate in FY25 was 18 per cent compared to the previous year.
“Drug exports to Pakistan continued for a few weeks even after India officially suspended all trade with Pakistan in May this year after a terrorist attack on tourists in Kashmir and the Operation Sindoor conducted by the Indian Army on the terrorist camps in Pakistan. However, customs clearance was subsequently halted,’‘ a senior official from a major drug exporter told businessline on Monday.
Exporting companies are spread across Telangana, Andhra Pradesh, Karnataka, Maharashtra and Himachal Pradesh. The industry is in the dark about the official stance on drug exports, as these are generally exempted from any bilateral or multilateral international sanctions. There has been no hint of any unofficial ban either.
In response to member concerns, the Pharmaceuticals Export Promotion Council (Pharmexcil) — an arm of the Union Ministry of Commerce — submitted a representation to the Director General of Foreign Trade (DGFT) last month.
A clarification has been sought on whether any official notification exists prohibiting or restricting the export of pharmaceutical products including Active Pharmaceutical Ingredients (APIs) and finished formations to Pakistan. It requested the date of notification, if any, to help the industry determine a cut-off date for implementing the ban.
Losses
A clarification on the official position of DGFT with reference to drug exports to Pakistan is “important to avoid financial losses to our members (exporters), prevent contractual breaches with international buyers and minimise disruption of pharmaceutical supply chain,’‘ the representative said adding that the industry would ensure “full compliance with government policy.”
Exporters are also seeking special procedures for shipments where advance payments have already been received from Pakistan importers and orders were confirmed prior to any restrictions.
As on date, the DGFT has not responded to the representation submitted by the Council, according to reliable sources.
Indian Pharma Exports to Pakistan
| FY 2024-25 | $208 million |
|---|---|
| FY 2023-24 | $176 million |
Categories of Drugs Exports (FY24-25) in Value Terms
| Formulations | $68.83 million |
|---|---|
| Vaccines | $66.67 million |
| Bulk Drugs/APIs | $68.83 million |
(Source: Phamrexcil data)
Published on August 25, 2025
