Alliance for Health Reforms urges CA Yunus to fast-track API policy implementation

The Alliance for Health Reforms Bangladesh (AHRB) has called for swift, top-level intervention to accelerate the rollout of the country's Active Pharmaceutical Ingredient (API) policy, describing it as a matter of "top national priority" to secure Bangladesh's pharmaceutical future and strengthen its health security.

In an open letter sent today (7 December) to the chief adviser, the organisation stressed the need for urgent strategic direction to cut import dependency and expand domestic API capacity. 

The letter was signed by AHRB Convenor Prof Syed Abdul Hamid of the University of Dhaka's Institute of Health Economics and Prof Syed Md Akram Hossain, member of the Health Sector Reform Commission and chairman of Clinical Oncology at Bangladesh Medical University.

The letter highlights that while Bangladesh can manufacture nearly all essential medicines, it continues to rely heavily on imported APIs. This dependency, it says, leaves the country's pharmaceutical supply chain vulnerable to external shocks, a weakness laid bare during the Covid-19 pandemic.

Drawing on observations from the Health Sector Reform Commission, AHRB noted the need to rapidly expand domestic capacity not only in API production but also in vaccines, in vitro diagnostics (IVDs), and medical devices. 

Achieving this, it says, will require stronger incentives for research and development, targeted policy support, and phased import restrictions once local capabilities mature.

The letter praises the 1982 National Drug Policy as a "historic success", crediting strong political leadership and tight regulation for transforming the pharmaceutical sector. A similar high-level push is now needed, it argues, to shift the industry into a high-value, knowledge-driven phase.

Quoting Nobel Laureate economist Joel Mokyr, the letter states that "knowledge is the main engine of modern economies", warning that Bangladesh's tax-to-GDP ratio will remain stuck below 7% without a shift toward knowledge-intensive industrialisation. While pharmaceuticals contribute 5% of India's total exports, the figure stands at only 0.5% in Bangladesh — a gap that AHRB argues represents "vast untapped potential".

Five urgent steps for API policy rollout

AHRB outlined five priority actions required to operationalise the API policy:

• Removal of administrative and infrastructural bottlenecks.
• Introduction of an attractive Production-Linked Incentive (PLI) scheme.
• Sustained government investment in research and development.
• Stronger collaboration between academia and industry.
• Formation of a permanent, empowered task force with strict timelines.

The organisation stressed that the policy "will not progress organically" within existing bureaucratic processes and needs active monitoring and direction from the highest levels of government.

According to the letter, direct oversight from the chief adviser and the finance adviser is essential to ensure that:

• The API policy does not stall at the planning stage.
• Bangladesh reduces import dependence and saves foreign currency.
• Export capacity expands, enabling competitive entry into global markets within the decade.
• High-skilled employment grows, contributing to higher tax revenues.

"This is not merely an administrative decision," the letter concludes. "It is a strategic national commitment tied to Bangladesh's future competitiveness, capacity, and public health security."