KARACHI, May 6, 2026 — GlaxoSmithKline Pakistan Limited expects tax relief for the pharmaceutical sector in the upcoming federal budget 2026-27, citing pressure on profitability from the current high-tax regime, company officials said on Wednesday.
The outlook was shared during the company’s corporate briefing session on 2025 financial results and future projections.
Management said rising costs of active pharmaceutical ingredients (APIs), coupled with elevated oil prices and freight charges, are impacting margins across the industry. It added that while recent trends in API prices have remained relatively stable, currency depreciation continues to pose a risk due to dollar-linked import costs.
The company noted that approximately 10–12% decline in volumes was recorded in 2025, driven by price adjustments and competitive pressure. However, revenue growth of 9% year-on-year was achieved, reaching Rs66 billion, mainly supported by price increases across its product portfolio.
GSK said it remains Pakistan’s leading pharmaceutical company with a 9% volumetric share and 6% value share in 2025. Institutional sales accounted for around 7–8% of total revenue, with higher activity typically observed in the final quarter due to government tenders.
Top five brands, including Augmentin, Amoxil, and Calpol, contributed nearly 58% of total revenue, reflecting strong reliance on core products.
Management highlighted a strategic shift away from low-margin tender participation to improve long-term sustainability. It also noted a reduction in group-level promotional support as local profitability improves.
The company further said that regulatory approvals for around 50–60 hardship cases remain pending. Meanwhile, it continues to expand its vaccine portfolio, including the rollout of Shingrix.
Industry analysts said the pharmaceutical sector remains sensitive to taxation policy, currency volatility, and input costs, making the upcoming budget a key event for market direction.