Chinese Firms to Build Pakistan Manufacturing Plant

According to Chinese state media, two Chinese companies have agreed to set up a new manufacturing plant in Pakistan with local conglomerate Royal Group. Under the agreement, SPGC Sine Pharmaceutical Laboratories and Orient International Holding are to invest US$5mn on the new facility, to be built in Karachi.

The deal reportedly follows an official visit to China by Pakistan's president in late 2003, and reflects a marginal improvement in Pakistan's business climate in recent months. Local operating conditions strongly favour basic, cheap generics, which currently comprise the bulk of China's drug output. Pakistan's drug spending is expected to be worth US$940mn at consumer prices by 2007.