Bangladesh in Transition: Political Change and Pharmaceutical Growth

Recent Political Developments in Bangladesh

• Sheikh Hasina, former prime minister of Bangladesh, was forced to leave office in November 2024 after weeks of student-led protests met with deadly force; the protests began after students demanded a reduction in the government job quota system, which reserved around 30% of public sector positions for descendants of those who participated in the 1971 War of Independence from Pakistan. 
• Hundreds of people were killed during these protests, which led to further protests asking for justice and ultimately led to Hasina’s resignation.
• During her last term the country experienced economic growth and development, particularly in the garment sector. However, many people felt that the benefits were mainly limited to Dhaka and a small wealthy elite.
• Being Hasina’s party excluded from political activity, the main contenders in the current elections were the Bangladeshi Nationalist party (BNP) and the Jamaat-led alliance, which includes the National Citizen Party (NCP):
  • Jamaat had expressed intent in reducing the country’s dependence on the garment sector by promoting economic diversification. 
  • Historically BNP has supported private sector growth and backed market-oriented policies. 

With Hasina’s party excluded from political activity, economic diversification appears more feasible as in the new context both major political contenders present platforms that emphasize international engagement and industrial growth. 

The pharmaceutical sector depends heavily on international certification, its development is therefore primarily reliant on regulatory stability and continued international cooperation, an objective that the parties have expressed to have in common. 

As a matter of fact the manifesto of the winning party, the BNP, reports the following interesting point to our case:

• Building a Trillion-Dollar economy: “Our goal is to transform Bangladesh into a modern, democratic, upper-middle-income country, where a one trillion-dollar annual national GDP economy will be built by 2034.”
• Incentives for export-oriented industries: “Various types of incentives will be provided in industries such as pharmaceuticals, IT, leather and footwear industry, and agro-processing.”
• Raising foreign investment to 2.5% of GDP: “According to the one trillion-dollar economic roadmap, efforts will be made to raise foreign direct investment from 0.45% to 2.5% of GDP.”

These policy objectives suggest a potentially supportive environment for the expansion of the pharmaceutical industry, particularly in terms of export promotion and foreign investment attraction.

WHO Support and Regulatory Reforms

• WHO has strongly supported the development of Bangladesh’s pharmaceutical industry. In 2016, a coalition of partners under leadership of the DGDA (Directorate General of Drug Administration) was created to help local companies meet the standards of the WHO Prequalification of Medicines Program.
• Thanks to the collective effort, Beximco Pharmaceuticals became the first Bangladeshi company to receive WHO prequalification approval in 2019.
• The DGDA used WHO’s Global Benchmarking Tool to evaluate its regulatory system. After identifying gaps and weaknesses, it created a reform plan aimed at reaching Maturity Level 3 (ML3).
• USAID supported this work by providing training and technical help.
• In July 2021, WHO conducted a formal assessment to evaluate Bangladesh’s Maturity Level concluding it was not yet strong enough to reach Maturity Level 3. To strengthen the system, the DGDA introduced a five-year strategic plan for 2022–2026.
• In February 2023, the Cabinet approved the Drugs and Cosmetics Bill 2023, expanding the DGDA’s authority regulating medicines and the oversee the production, import, marketing, and sale of cosmetics.

ADB Financing and Industrial Development

• In 2023 the Asian Development Bank approved a loan of $336.5 million to help Bangladesh build its own capacity to produce vaccines, medicines, and diagnostic products and to strengthen the DGDA.The objective is to help the regulator reach WHO ML3 and potentially go beyond it.
• The project was designed in response to the COVID-19 pandemic, which revealed serious problems in accessing vaccines.  In low and middle income countries, registering new medicines and vaccines usually takes 4/7 years, compared to 1/2 years in high-income countries. The pandemic showed that Bangladesh depended too much on imports and needed to become more self-sufficient in vaccine production and pandemic preparedness.
• Achieving WHO Listed Authority status would allow Bangladesh to obtain WHO prequalification more easily for locally produced vaccines.
• The financing comes from ADB’s $9 billion Asia Pacific Vaccine Access Facility, launched in 2020 to support vaccine access and health security in developing member countries. This project builds on earlier ADB support of $940 million provided to Bangladesh in 2021 for COVID-19 vaccine purchases.
• Bangladesh introduced the Drug Pricing Method 2026 (Allopathic) under the Drugs and Cosmetics Act 2023. This new policy requires the government to set maximum retail prices (MRPs) for essential medicines.The system applies to 295 essential medicines listed in the National Essential Medicines List (NEML). The 2026 update added 136 new drugs. These medicines cover about 80% of treatments for common diseases.

Pharmaceutical Industry Outlook and Prospects 

Despite broader economic challenges in FY 2023–2024, including slower GDP growth, inflation, currency fluctuations, and rising energy costs, Bangladesh’s pharmaceutical sector has continued to show resilience and steady growth. The country now meets about 97–98% of its domestic demand for medicines and exports pharmaceutical products to around 150–155 countries.

• Even though Bangladesh’s pharmaceutical exports were slightly lower in April 2025, the overall trend for the first ten months of the 2024-25 fiscal year remained positive. Between July 2024 and April 2025, exports rose to $177.42 million, up from $171.49 million in the same period the previous year, showing YoY growth of about 3.5% despite short-term declines. 
• Industry experts say the April drop was likely due to seasonal pauses in key markets, holiday breaks in importing countries, port delays, and reduced donor purchases, not a weakening of long-term export strength.
• The industry prioritizes compliance with international standards such as those of the USFDA and EMA, which is essential for access to regulated export markets. Advanced products such as cancer drugs, insulin, biologics, and hormones are now produced locally. 
• Investments in infrastructure, including the Active Pharmaceutical Ingredients (API) Industrial Park, are strengthening domestic production capacity and reducing dependence on imports.
• Moreover, the market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.47%, leading to a market volume of $5.98bn by the year 2029.
• Bangladeshis spend about US$2.4 billion abroad annually for medical treatment, which is 1.94% of the country’s GDP.
• The country has a competitive and skilled workforce, attracting multinational companies for contract manufacturing and joint ventures. A key example is the partnership between Novo Nordisk (Denmark) and Eskayef Pharmaceuticals, which now produces insulin pen cartridges locally. At the same time, Bangladeshi companies are expanding internationally. Square has invested in Kenya and the Philippines, and Beximco plans production in Saudi Arabia.
• Supportive policies strengthen the sector. For example, being Bangladesh a Least Developed Countries (LDCs) the WTO TRIPS patent waiver extension until 2033, allows continued production of patented medicines.
• Bangladesh is now the only Least Developed Country (LDC) that meets more than 97% of its domestic demand for pharmaceutical products and as Bangladesh prepares to graduate from LDC status and incomes rise, demand for healthcare is expected to grow further.

Cordoba’s view

The following points summarize our assessment of the pharmaceutical sector’s outlook:

• The recent political transition has reduced uncertainty.This creates a stable context for the pharmaceutical sector.
• The industry depends on regulatory credibility and international certification. WHO reforms and the $336.5 million ADB loan strengthen regulatory capacity and vaccine production.
• Exports grew by around 3.5% year-on-year in FY 2024–2025. The market is expected to grow at 6.47% annually, reaching nearly $6 billion by 2029.
• As a Least Developed Country, Bangladesh benefits from the WTO TRIPS patent waiver until 2033. This allows the production of generic patented medicines and supports cost competitiveness.
• Rising healthcare demand and higher FDI targets (up to 2.5% of GDP) further support long-term growth.

Taken together, these elements make the pharmaceutical industry a strategic sector with strong and sustained growth potential.