Experts say
Business leaders and health experts yesterday urged the government to remove obstacles that hinder the growth of the private sector in healthcare services, medical equipment, and the pharmaceutical industry.
They pointed out the country's heavy dependence on imported raw materials for pharmaceuticals and medical devices while speaking at a seminar, titled "Private Sector Engagement in Health System Development in Bangladesh: Potentiality and Challenges", organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its Motijheel office.
They called for business-friendly policies to reduce this dependency and recommended simplifying licensing and renewal processes for private hospitals, medical equipment suppliers, and pharmaceutical companies.
In his keynote speech, Prof Syed Abdul Hamid of the Institute of Health Economics at Dhaka University said, "Our pharmaceutical sector now meets 98 percent of domestic medicine demand, but 90 percent of the raw materials for these drugs have to be imported."
He added, "Around 90 percent of medical equipment, especially high-end devices, is also imported, making the sector heavily dependent on other countries. Yet, tariffs on raw materials are higher than on finished products, discouraging business people from investing in this sector."
Prof Hamid proposed several measures, including imposing regulatory restrictions on the import of medical equipment already manufactured locally and providing VAT exemptions for locally produced medical devices for 10–15 years.
"We should also formulate a national medical equipment policy to protect local manufacturers, similar to the National Drug Policy, 1982," he said.
On private healthcare services, he noted, "There are 6,000 registered hospitals in the country with 126,000 beds, which account for 60 percent of total hospital beds. In addition, around 12,000 private diagnostic centres operate, though half of them are unregistered."
He warned, "Many private facilities lack adequate and qualified staff, remain underutilised, rely on broker-driven marketing, and face complex, time-consuming licensing and renewal processes."
To address these issues, Prof Hamid recommended, "Licences should be renewed every three to five years. One-stop service centres at the Directorate General of Health Services and civil surgeon offices should be introduced to simplify licensing. Training for health workers should be provided along with a standard remuneration package."
Abdur Razzaq, founder and managing director of JMI Group, said, "We produce 98 percent of medicines locally, but for medical devices, it is only 5–10 percent."
"Without policy support, the pharmaceutical industry would not have reached its current position. So, we need policy support for flourishing medical equipment industries," he added.
Md Mostafizur Rahman, CEO of the Bangladesh Association of Pharmaceutical Industries, noted that entrepreneurs must obtain licences from 47 different agencies to establish an API (active pharmaceutical ingredients) industry, which discourages investors.
He called for a one-stop service to simplify the licensing process.
Health Secretary Saidur Rahman said the private sector constitutes a major portion of the country's health system, making proper coordination between the public and private sectors essential.
He added that authorities are working to simplify licensing processes for private hospitals.
Several other health professionals and FBCCI members also spoke at the programme.
