Need underlined for enhanced health budget, IVD System

(Interview of Mr. Zafar Mehmood, CEO Global Marketing Services published in Pakistan observer on

August 29^th,  2007)

CEO GMS Zafar Mahmood has said that is the only thing one can operate from and the dream of healthcare cannot be achieved until the budget is multiplied and new technologies of IVD are promoted. Talking to Pakistan Observer Zafar Mahmood of Global Marketing Services said total IVD market size in Pakistan is 66 million USD, in which 25 million USD is with multinational companies and local players enjoy a share of 38 million USD.

Zafar said, “56 per cent taxes are imposed on IVD products which make the situation perplexing and burden goes to the end-users there in no Sales Tax on pharmaceutical products while on IVD products it is 15 per cent, which must be exempted. There are 300 local players in which we enjoy 25 percent of share, he said adding the health budget is 1% of our GDP that expresses carelessness. In previous five years it has been doubled, while in US it is 14 percent and in other developed countries this is 8-10% of GDP while in neighboring India, it is 3 percent of GDP.

He said that government should promote organizations striving to provide cost-effective solutions to end-users and trying to reduce the cost for care for patients. “ We are introducing latest diagnostic tools and bringing the most recent innovation to our country …..we hope to start diagnostic manufacturing facility in Pakistan, “informed Zafar.

Replying to a question he explained that IVD stands for In-vitro Diagnostic, it includes those tests that are performed outside the body like Urine test, Blood test, Tissue typing, DNA testing etc. It compromises pathological lab, blood banks, life sciences, research and analytical sectors IVD is a very sensitive segment in the field of health and Pakistan also suffers from compound healthcare facilities. Clinical and pharmaceutical sector are some how at safer position but IVD is being neglected.

He said there is no standardization in our laboratories and it could lead to very dangerous consequences.

He said that now health is getting attention but IVD is ignored and there is no legislation or registration for IVD products. There is no barrier over entries and it is being dealt by some non-professionals who are totally unaware of its importance. Third party’s intrusion and smuggled products have also damaged our national or international markets. Currently, it is highly focused to a new concept of treatment based on immediate diagnosis like  cancer, heart diseases etc, said Zafar.

He said that multiple reasons including size of market, presence of non-serious players and no-supportive policies have barred investors from manufacturing of IVD products at local level. Pakistan’s IVD sector is growing at 20 per cent which is three times lesser than Global IVD growth. We have huge funds from international donors like JTZ a German company giving donations globally for centralized blood banking system and is now interested in Pakistan’s major cities to invest rupees 2 billion for safe blood transfusion centers awareness level is much short, it needs awareness through literacy otherwise we will not be able to come up with the modern world. Government has to play its key role and some joint ventures of private and public sectors can improve the scenario about IVD products.