Indian pharmaceutical exporters to Pakistan are facing challenges due to a halt in customs clearance of their shipments for over two months. India’s annual pharmaceutical exports to Pakistan are worth more than $200 million, including formulations, vaccines, and APIs. The exports had continued for a few weeks even after India officially suspended all trade with Pakistan in May, but customs clearance was subsequently halted.
Since drugs are generally exempt from international sanctions, the industry is seeking clarification from the Directorate General of Foreign Trade (DGFT) on the official policy regarding these exports. The Pharmaceuticals Export Promotion Council (Pharmexcil) has submitted a representation to the DGFT, stating that a clarification is crucial to prevent financial losses for exporters, avoid contractual breaches, and minimize disruption to the pharmaceutical supply chain. Exporters also want to know if special procedures will be made available for shipments where advance payments were already received before the curbs began.