Ref: PXL/H.O./CIR-059/2014-15                           Date: 12.11.2014

To

Dear Sir/Madam,

Sub: Proposed Delegation visit to Kabul, Afghanistan during Jan./Feb. 2015 subject to adequate response from members.

We have pleasure in informing our members that our Embassy of India in Kabul have strongly recommended our Council to mount a delegation to Kabul, Afghanistan and conduct a B2B meetings with the Afghans importers, distributors etc.

We understand from our Mission in Afghanistan that several associations including the Medicines Importers Association, Medicines Manufacturers Association, Wholesaler Association, Retailers Association, and Medical Equipment Association represent Afghanistan's pharmaceutical and medical supplies private sector. These associations from Kabul and six regional zones of Nangarhar, Kandahar, Mazar-e-Sharif, Herat, Paktia and Kunduz have been brought together under the umbrella of the ANMSO. ANMSO is the singular voice actively representing the interests and concerns of its members to the Ministry of Public Health and international partners to properly regulate the pharmaceutical sector for quality assurance. They have shown keen interest towards Indian pharmaceutical products and have requested the Mission to organize business networking event in Kabul and India. Pharmexcil proposes to take this great initiative of our Mission forward and mount a high-powered Pharma delegation either in during Jan. / Feb 2015.

Our Embassy of India, Kabul, Afghanistan has assured all assistance for the delegation including security related issues.

A short brief on Afghan Pharma sector given by our Mission:

The pharma sector in Afghanistan is at a very nascent stage. It is mainly dependent on imports for all kinds of goods and services including pharmaceuticals to fulfill the needs of its 30.6 million people. Currently the country has an estimated annual medicine consumption of USD 700 million and only 4% of the total consumption is met by the local producers. The remaining 96% demand is met by imports from Pakistan, Iran, India, Korea and China. Our trade statistics show only 46 Million USD worth exports in year 2013-14 though some informal trade is also reported. The discussions with the Afghan importers revealed the following percentage of supply to the Afghan market:

(a) Pakistan: 50% (Several multinational companies from Pakistan have established their local offices in Afghanistan for promotion).

(b) Iran: 15-20%

(c) India: 15% (Earlier it was 60% but currently the imports from India have declined though most of the Afghans seem to be favorably inclined to import from India. Need for Indian multinationals to explore market in Afghanistan).

(d) China: 7-8% (surgical equipment- 90%)

(e) Korea: 3-4%

(f) Bangladesh: 2-3%

The pharmaceutical market in Afghanistan is growing sharply with a huge market gap available for the domestic producers to exploit. There are 16 local manufacturing companies and 80% of them import their raw material from China. The existing political set up in the country has shown its commitment to encourage domestic investment in the pharmaceutical industry and have taken a number of steps in this regard like cuts in custom duties on imports of raw material, tax rebate for 7 years and encouragement of locally produced medicines in the public sector pharmacies etc. Due to abundance of natural herbs and current investment friendly government policies, investment in pharma manufacturing units is a lucrative option.

In view of the above, members may kindly confirm their participation to enable the Council to propose a delegation to our Embassy in Afghanistan and also to the Ministry of Commerce & Industry. The delegation visit will be proposed subject to adequate response from our members.

Interested members may kindly send their confirmation regarding their participation to romumbai@pharmexcil.com and info@pharmexcil.com latest by 15th November 2014.

Thanks & regards

Raghuveer Kini

Executive Director