In a significant move to achieve health security and industrial self-reliance, the Government of Pakistan has decided to establish a dedicated National Vaccine Fund. The decision was finalized during a high-level meeting chaired by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, and co-chaired by Federal Minister for National Health Services, Mustafa Kamal, in Islamabad on Wednesday.
Core Components of the New Vaccine Policy
The fund is the cornerstone of a newly approved vaccine policy aimed at promoting local vaccine manufacturing. Under this policy, approved vaccine manufacturers will be allowed to retain up to 35% of their export earnings in US dollars to manage expenses in international markets. The government will also expedite regulatory approvals and classify vaccine manufacturing as a greenfield investment for favorable power tariffs, ensuring the availability of land and utilities.
Structure and Function of the National Vaccine Fund
The National Vaccine Fund will operate as a professionally managed, state-anchored investment vehicle run on commercial principles. It is designed to provide patient, risk-sharing capital through equity, quasi-equity, and milestone-based financing instruments. The fund's investments will target critical areas including:
- Vaccine scale-up and manufacturing capacity.
- Clinical development and trials.
- Regulatory readiness and approvals.
- Shared Good Manufacturing Practice (GMP) infrastructure.
Capitalized through federal contributions, development finance institutions, and private co-investment, the fund may be set up as a Special Purpose Vehicle (SPV) or a Section 42 company. Its investments will be tightly aligned with national immunization priorities and backed by conditional government purchase commitments.
Immediate Actions and Long-Term Vision
As part of immediate policy actions, the government will launch long-term contracts and buy-back agreements with local manufacturers. This approach is critical because vaccine production requires massive upfront capital and long development cycles long before the first dose is sold.
The fund is expected to convert procurement guarantees into bankable projects, accelerate progress towards World Health Organization (WHO) regulatory maturity, and transition Pakistan from episodic vaccine imports to a sustainable, export-capable domestic ecosystem. Similar financing instruments have successfully supported vaccine programs in countries like Brazil, South Korea, and Indonesia.
This strategic initiative marks a pivotal shift towards securing Pakistan's health future and fostering a high-tech industrial base capable of serving both domestic needs and the global market.
