How to Open a Pharmacy in Pakistan.

First of all have to Get a Drug Sales License:

Types of License:
Form-6 Licence: This type of Drug Sales license should be used for Retail sales of Medicines.
Form-8 License: This type of Drug Sales license should be used for Pharmacy type sales of Medicines.
Form-9 License: This type of Drug Sales license should be used for sales of Narcotics Medicines by all
ways like (Retail, Whole sale or Manufacturer).
Form-7(a) License: This type of Drug Sales license should be used for the sales of Medicines by way of
Whole Sale or Distribution.
Form-7 License: This type of Drug sales license should be used for the sales of Medicines for Importers,
Exporters, Indentors and Manufacturers.
Process to apply for a Drug sales License:
1) Fill a prescribed form-5 in Drug Rules.Form-5 (Click to Download)
2) Fill an affidavit on Rs. 50.00 stamp papers as prescribed (Click to Download- Affidavit)
3) Deposit a fee of License through a prescribed Challan in a bank. (Click to Download:Chhallan for fee)
Fee as below:
New License Fee of Rs= 5000.00
Renewal Fee of Rs= 3000.00
4) Attached a CNIC Copy with the Form 5.
5) Attached an aggreement copy of rental or proof of owner ship of the premisses.
6) Attached a copy of NTN certificate with form 5.
7) Authorized Agents copy (means which medicines you want to sale their
manufacturer/importer/indentors authorization letter for the sales of the drugs of their medicines).
8) PCDA (Pakistan Chemists & Druggists Association) / Chamber of commerce & Industries membership
certificates copy.
9) Qualified person (B-Pharmacy/D-Pharmacy/Dispensor) certificate holder should be posted at the
premisses and attached his degree of qualification, Pharmacy Council registration, his CNIC and 4
Passport size photos should be attached with Form 5.
After that all the above requirements, you should submit it your areas EDO (Health) office or DHO office .

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New Office Bearers of PCDA for the year 2015-16.

Protected: Annual Election Schedule 2015-2016 has been announced.
How to Open a Pharmacy in Pakistan.
DRAP: Medical Device Rules, 2015 (SRO. 204(I)/2015 dated: 09.03.2015.
DRAP: Agenda of the 248th Registration Board Meeting to be held on 18-19th March 2015.
Sindh High Court suspends Section 7 of The New Drug Pricing Policy by DRAP on PCDAs
appeal:

DRAP: Pricing Policy 2015.

DRAP: 240th CLB Meeting To be Held on 06.03.2015
DRAP: 239th Central Licensing Board Meeting held on 09.01.2015.
DRAP: 238th Central Licensing Board Meeting held on 19.11.2014.

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Retail Pharmacy is an outlet where pre-packed medicine are sold for end consumers.
These stores are open in every part of the city . In addition to medicine, a pharmacy can
also provide other necessities as well. In other words, if a pharmacy is properly managed
it could also work out as a convenience store.

Investment Requirements
The investment required for this business is around 2 million rupees including the cost
for inventory , decor and furniture.

Target Audience
Target Audience for this business are users who wish to purchase medicines and other
convenience store products.

Location
The location of the pharmacy should have free parking space and should be situated
close to the residential. If it is located near a hospital, the flow of customers will also
increase.

Profit Margins
The profit margin on retail pharmacy medicines ranges from 15% to 20%.

Business Model
The business model works on simple supply chain model. The retailer buys the products
from the company designated distributor and sells the product to the end consumer by
keeping the assigned profits and margins. This business model falls under the ministry
of health. They have issued different sets of rules which are to be followed by the owner
of the pharmacy.

Investment requirement (with breakdown)

Land 35,000-40,000/Per Month
Land Advance- 300000/ One Time
License fee 10,000/Annual
Equipments and Interior 5 Lac (One Time)
Stock/Inventory 10 Lac (One Time)
Qualified Person (If the person planning to open does not hold a pharmacy degree)60000/Annual
Front Enter Staff 30000/ Per Month (3 Person)

Initial Requirements (registration/equipment)

Before you start your pharmacy you have to register it with the drug court and obtain
proper license from the government. Before opening, an approval from the respective
area drug Inspector is required.
The basic equipment required in a pharmacy is;
Air conditioner for proper temperature
Refrigerator for vaccinations

Running Cost
The overall Running cost to open up a pharmacy ranges from 20 Lac to 25 Lac
depending upon the scale of the pharmacy and location.

Workforce
Trained working Front Desk Staff (2 to 3 Persons)
Cashier (1 Person)
Sweeper (1 Person)

Marketing
The Marketing tools that could be used for this type of the business are as follows:
Boucher
Flyers
Banners

Breakeven Time
The break even can be achieved within a period of 6 to 12 months depending upon the
business size.

Major problems
The major problems are as follows :
Government Restrictions and Drug Law
Frequent visits by Drug Inspector
Mindset of the end consumers
Credit limit requirement by the customers

Backbone of Business
The Back bone of the business is how you manage your inventory, how much you

increase your stock level (shelf level) with the passage of time and how much you
incorporate the consumer demands in terms of items in your stock. The business is also
dependent on the increasing range of new medicines with new formulation. Keeping the
updated variety of medicine also plays a key role.
-------------------.

First, you need to contact the part of the Karachi local government
that deals with business licenses or permits. Find out if there are any
special requirements.
Second, contact the part of the Karachi local government that controls
zoning, if they have one. In some places, zoning commissions regulate
where and what kind of businesses or residences are allowed. A few
lucky places don't have zoning.
Third, find out what it takes to acquire stock for your store. In some
cases, you have to purchase some (large) minimum per order or per
year to get good pricing. In other cases, the vendor owns everything,
and you just provide shelving.
Fourth, contact your tax authorities and find out if there are any
special or supplementary taxes that apply to your business, and how
often you have to file.
Fifth, find out if you're required to have insurance, and how much it
will cost, and how often it must be paid.
Sixth, find out if what you're selling has special regulations concerning
who you can sell to, and what kinds of records, if any, must be kept.

You might also scout around and see if there's a similar business
already in Karachi, that might be interested in a partner or investor.
Buying a piece of an already-functioning business will let you see how

things operate without (hopefully) surprises from the authorities, and

let you assess the local market. After a year or so you could decide
whether you wanted to open a store of your own.

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DRUG MANUFACTURING LICENCE FEES

Head of Account for Deposit of Fee for Licensing/Renewal,

Registration/Renewal, Advertising, Import & Export and Appellate etc.
C-Non Tax Revenue

C02-Receipts
from
Civil
C028-Social
C02871-Health-Other Receipts

Administration

and

other

Functions.
Services.

Head of Account for Deposit of Central Research Fund (CRF)

G-Liabilities.
G-12-Special
G-127-Other
G-12745-Central Research Fund.

Deposit-Fund.
Funds.

(A) For the grant of license:-

Type
of
license
By
way
of
basic
By
way
of
By
way
of
By way of repacking- - - - Rs. 10,000/-

semi-basicformulation-

-Rs.
-Rs.
--Rs.

Fee
10,000/10.000/35,000/-

(B) For renewal of license:-

(i) If the application for renewal is made before the expiry of the period of validity of license:
Type
of
license
Fee
By
way
of
basic
Rs.
5,000/By
way
of
semi-basicRs.
5.000/By
way
of
formulation-Rs.
17,500/By way of repacking- - - - -Rs. 10,000/-

(ii) If the application for renewal is made after the expiry of the period of validity of license but within sixty days
expiry
of
the
period
of
validity:Type
of
license
Fee
By
way
of
basic
Rs.
10,000/By
way
of
semi-basicRs.
10,000/By
way
of
formulation-Rs.
35,000/By way of repacking- - - - - -Rs. 20,000/-

II
SITE
[See Rule 26(3B)]

VERIFICATION

AND

LAYOUT

(A)
Site
of
inspection
and
verification(B)
Approval
of
layout
plan(C) Revision or Extension of layout plan- - Rs. 500/-per Section

1000/-

Rs.

III
[See Rule 17(3)]

Repacking
Schedule D.

of

PLAN

Rs.
per

1,000/Section

REPACKING

Drugs

Rs.

500/-

(IV)
DRUGE
[See Rule 26(3B)]

per

drug

Specified

REGISTRAION

in

FEE

(A) For the grant of registration:

Type
New
Any

drug
Other

of
Moleculedrug
for

Drug
-

import-

Rs.
Rs.

Fee
15,000/15,000/-

Any other drug for local manufacture- - Rs. 8,000/-

(B) For renewal of registration :

(i) If the application for renewal is made before theory of the period of validity of a certificate of a certificate of
registration.
Type
of
Drug
Fee
For
Import
Rs.
7,500/For
local
Manufacture
-Rs.
4,000/(ii) If the application for renewals made after the expiry of the period of validity of certificate of registration but
within
sixty
days
after
expiry
of
the
period
of
validity.
Type
of
Drug
Fee
For
Import
-Rs.
15,000/For
local
Manufacture
Rs.
8,000/Including galenicals

(C) Variance to registration application i.e. Rs.1,000/----------------------.