Written by The Banking Post
Bangladesh’s health sector is facing mounting challenges—from complex licensing procedures to heavy reliance on imported medical devices and raw materials—raising concerns as the country moves toward graduating from Least Developed Country status.
At a discussion titled “Private Sector Participation in Bangladesh’s Health Sector: Opportunities and Challenges,” organised by the FBCCI on Tuesday, business leaders and experts urged rapid reforms to safeguard the sector’s competitiveness.
One of the most pressing issues is the minimal local production of medical devices. JMI Group Chairman Abdur Razzaq noted that although Bangladesh can manufacture 99 per cent of its medicines, domestic production of medical devices stands at just 5–10 per cent due to inadequate policy support.
“We never developed policy support for medical devices. If we hadn’t received policy backing, our pharmaceutical industry wouldn’t be where it is today,” he said. He added that rising dollar rates and a 40 per cent surge in raw material prices were squeezing the industry.
Major General Mostafizur Rahman, CEO of the Bangladesh Association of Pharmaceutical Industries, reported that no new drug prices have been approved in the last 18 months, leaving companies unable to adjust prices despite soaring costs. “Around 13 to 14 companies have already shut down,” he said.
He pointed to deep-rooted import dependency, saying essential raw materials often require approval from as many as 47 authorities. Despite significant investments in API (Active Pharmaceutical Ingredient) production, the API Park cannot operate fully due to shortages of gas, electricity and skilled manpower. Curriculum reforms required to address the skills gap have remained pending for more than a year.
Experts at the event said licensing delays were slowing down the entire sector. BRAC Senior Director Dr. Md Akramul Islam stressed the need to overhaul the licensing process to enable private providers to better serve low-income communities.
DGDA Director Ashraf Hossain said pharmaceutical firms typically need five years to break even, while counterfeit medicines continue to circulate because of weak reporting and monitoring systems.
In his keynote, Dr. Sayed Abdul Hamid, Professor of Health Economics at the University of Dhaka, highlighted that the medical equipment market has grown to Tk 150 billion but remains highly import-dependent. “Eighty per cent of raw materials are imported, and tariffs on raw materials are often higher than on finished products,” he said. He proposed VAT exemptions for up to 15 years, tariff rationalisation and stricter quality controls to prevent an influx of low-grade products.
He noted that the US$4 billion pharmaceutical sector remains vulnerable because Bangladesh’s API policy—introduced only in 2018—needs far stronger support, similar to development models in China and India.
Health Secretary Saidur Rahman acknowledged the cumbersome licensing system but said reforms are underway, including a move toward a three-year renewal cycle, without compromising on quality. He also underscored gaps in diagnostic services, urban primary healthcare, workforce shortages and emergency care, calling for deeper public-private collaboration.
Universal Medical College Chairman Priti Chakraborty cautioned that rising treatment costs are putting pressure on households, urging the government to prioritise health insurance for financial protection.
BIDA Director General (Research and Policy) Gazi AKM Fazlul Haque said the agency is preparing a draft policy for medical equipment to help address longstanding structural challenges.
