The devastating fire at the cargo village of Hazrat Shahjalal International Airport has dealt a major blow to Bangladesh鈥檚 pharmaceutical industry. The sector is likely to face losses exceeding Tk聽4,000 crore.
The industry representatives said that 45 leading pharmaceutical companies have reported damage to raw materials and machinery worth Tk聽200 crore so far.
They revealed this at a press conference held on Tuesday at the Bangladesh Association of Pharmaceutical Industries鈥� office in Dhaka.
Md Zakir Hossain, secretary general of BAPI, said the overall economic impact could cross Tk聽4,000 crore, disrupting the production of life-saving medicines, including antibiotics, cancer drugs, diabetes treatments, and vaccines.
The fire broke out around 2:30pm on Saturday and raged through the cargo village near Gate 8 of HSIA.
About 37 units of the fire service, aided by the army, navy, air force, and civil aviation authorities, managed to bring the blaze under control by 10:00pm, though it was fully extinguished on Sunday.
Zakir said the total losses are expected to rise once assessments from other affected companies are completed.
鈥楾he fire completely burned vital raw materials essential for medicine production,鈥� he said, adding that the disaster has thrown the industry into uncertainty and exposed it to multiple risks.
He explained that losing one raw material affects every finished product that depends on it; a single medicine may require up to 53 different raw materials.
According to BAPI, Bangladesh has 307 licensed pharmaceutical companies, of which around 250 are actively producing medicines.
The destroyed materials included ingredients used in manufacturing antibiotics, vaccines, hormones, diabetic, and cancer medicines, along with key spare parts and machinery.
Replacing these would take time, likely disrupting production and export schedules, Zakir said.
He added that about 90 per cent of raw materials used in drug manufacturing are imported from China, India, and Europe.
鈥楳any of these materials were expensive and temperature-sensitive and were imported by air freight,鈥� he added.
These valuable materials have been destroyed by the fire. Even products rerouted to other airports are at risk since they must be stored at controlled temperatures.
鈥榃e fear these conditions may not be adequately maintained elsewhere,鈥� he added.
According to BAPI, Bangladesh currently exports medicines to about 160 countries, including the United States, Europe, Canada, and Australia.
Zakir noted that some materials were imported under special narcotics division approvals, and re-importing them would be complex and time-consuming due to multiple layers of authorisation.
When asked whether the incident might lead to price hikes in the local market, Zakir dismissed the possibility.
鈥楳edicine prices could not be increased arbitrarily. Any price adjustment must go through the Drug Administration鈥檚 approval process,鈥� he said.
He advised consumers to always check the maximum retail price printed on the packaging and report any overcharging to their district drug office.
Muhammad Halimuzzaman, BAPI treasurer and CEO of Healthcare Pharmaceuticals Ltd, said the damaged products could not be recovered but emphasised聽the importance of ensuring uninterrupted exports and production.
鈥楾he medicine supply remains stable for now. However, if the government fails to cooperate, shortages could appear in the coming months,鈥� he warned.
Kaiser Kabir, CEO and managing director of Renata PLC, criticised the lack of fire safety measures at the airport鈥檚 cargo village, calling it a 鈥榤ajor government failure.鈥�
鈥楨ven at our factory warehouse, we maintain a proper fire extinguishing system. But at the airport, our goods were under government custody in the customs warehouse without proper fire safety. We trusted the authorities, but they failed to uphold that trust,鈥� he said, urging the government to establish a long-term, international-standard firefighting system suitable for Bangladesh鈥檚 growing export-import activities.
Mossadek Hossain, senior vice president of BAPI, said pharmaceutical companies have imported material stocks sufficient for four to six months, and air-shipped products for two to three months.
鈥楬owever, we need cooperation from all stakeholders, especially customs and banks. If the cold chain issues are resolved and customs support ensured, product availability will remain stable,鈥� he said.
They urged the government to refund all customs duties, VAT, and taxes already paid on the destroyed consignments.
They also called for the exemption of importers from bank charges and interest on Letters of Credit.
The association demanded permission for smooth re-import of damaged goods under flexible LC terms with no additional bank margins, charges, or interest.
They sought a waiver of all customs-related penalties and exemption from demurrage fees, warehouse charges, and other related costs.
BAPI requested the government to allow importers to release LC payments with a minimum 180-day grace period.
They also urged for VAT exemption on finished medicines produced from the affected raw materials.
Pharmaceutical companies appealed for fast-track re-import of narcotic-class raw materials under previous approvals to prevent disruptions in production.
The businesses demanded that the customs house at the cargo village remain operational beyond regular hours, including Fridays and Saturdays, to expedite cargo clearance.
They further called upon the government to convene a coordination meeting with the DGDA, Narcotics Department, Customs, NBR, and Civil Aviation authorities to ensure effective and timely solutions to the crisis.
They also urged the establishment of聽a separate warehouse for the chemical products at the cargo village with proper maintenance facilities.
The association also urged the government and relevant authorities to conduct a swift investigation, ensure effective compensation, and strengthen alternative cargo handling systems to prevent similar crises in the future.
