Pakistan Surgical Instruments Sector ( )

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1 2018 Trade Analysis Series Pakistan Surgical Instruments Sector ( ) Trade Analysis Series Turn Potential into Profit! Ministry of Industries and Production Government of Pakistan UAN:

2 [Trade Analysis Surgical Instruments, Pakistan] 1 1. Product Description Surgical Instruments are specially designed tools or devices that assist health care professionals in performing different functions during a medical / dental surgery or operation, such as cutting, dissecting, grasping, holding, retracting, or suturing. Majority of surgical instruments are made from stainless steel. Other than medical and dental care, different varieties of surgical instruments are also used in veterinary care. The Harmonized Commodity Description and Coding System (referred as HS Codes) designated for trade of Surgical Instruments is The brief description of sub categories falling with-in product category of HS 9018 is provided in the following table: Table 1: Surgical Instruments Product Details Product Category HS Code Product Description Instruments for Medical, Surgical or Veterinary Sciences Needles, Catheters, Cannulae Etc Electro-Diagnostic Apparatus Needles and Syringes Dental Science Instruments Ultrasonic Scanning Apparatus Magnetic Resonance Imaging Apparatus Ophthalmic Instruments and Appliances Tubular Metal and Suture Needles Electro-Cardiographs Dental Drill Engines Infra-Red Ray Apparatus Scintigraphic Apparatus

3 [Trade Analysis Surgical Instruments, Pakistan] 2 2. Global Trade of Surgical Instruments Surgical Instruments are one of the most valuable and important commodities in international trade. During the year 2017, the international trade value of Surgical Instruments was USD 119 Billion. The exports have shown an upward growth trend with an average growth rate of 3 % from the year 2013 ~ 17. The last five years exports of Surgical Instruments in global trade are as follows: Table 2: Global Exports of Surgical Instruments - Last 5 Years Description World Exports (Value in US $ Billion) Growth %age 7% 6% -4% 3% 5% Figure 1: Growth Trend of Surgical Instruments Exports (Value US $ Billion) Major Exporters During the last 5 years, the exports of Surgical Instruments have been dominated by USA followed by Germany. The percentage share of the five biggest exporting countries is given in the following table: Country Table 3: Major Exporters in 2017 Exports (Value in US $ Billion) % Share in Exports in World Avg. % Growth in Last 5 Years United States of America Germany Netherlands Mexico Belgium 7 6 8

4 [Trade Analysis Surgical Instruments, Pakistan] 3 Product Mix - Share in Exports Instruments for Medical, Surgical or Veterinary Sciences are the most valuable commodity of Surgical Instruments in terms of global trade followed by Needles, Catheters, Cannulae etc. This is quite evident from the percentage share of different product categories in exports, as exhibited below: Figure 2: Product Mix of Surgical Instruments Export Ultrasonic Scanning Apparatus 4% Magnetic Resonance Imaging Apparatus 4% Others 7% Dental Science Instruments 4% Needles and Syringes 4% Instruments for Medical, Surgical or Veterinary Sciences 43% Electro-Diagnostic Apparatus 9% Needles, Catheters, Cannulae Etc. 25% 3. Pakistan s Exports Pakistan is one of the major exporting countries of Surgical Instruments as the country enjoys specialized skills especially when it comes to medical surgical and dental instruments. Over the years, export figures have shown reasonable growth, showing a predominantly positive growth trend in last 5 years with an average growth rate of 3 % from the year 2013 ~ 17. During the year 2017, the exports value of Surgical Instruments was US $365 Million. Pakistan s last five years export figures of Surgical Instruments are as follows: Table 4: Pakistan Exports Surgical Instruments - Last 5 Years Description World Exports (Value in US $ Million) Growth %age 2% 7% 3% -1% 5%

5 [Trade Analysis Surgical Instruments, Pakistan] 4 Figure 3: Growth Trend of Pakistan s Exports (Value in US $ Million) Pakistan s Major Product Mix Similar to world exports, Pakistan s total exports of surgical instruments are also concentrated in the article of Instruments for Medical, Surgical or Veterinary Sciences (i.e HS Code ) with 99% share. The remaining share is taken by Needles, Catheters, Cannulae etc (i.e HS Code ). Pakistan s Exports Destinations In last five years, Pakistan s major export partner for Surgical Instruments was United States of America, followed by Germany. The percentage share of top five importing countries of this commodity from Pakistan is given in the following table: Table 5: Pakistan s Top Five Export Partners Last 5 Years (Percentage) Country United States of America Germany United Kingdom China France Import Destinations of Surgical Instruments The largest importing country of Surgical Instruments is USA, followed by Germany and Netherlands. The percentage share of five biggest importing countries are given below;

6 [Trade Analysis Surgical Instruments, Pakistan] 5 Figure 4: World Top 5 Importers (Percentage Share in 2017) USA Germany Netherlands China Japan Partner Countries of Top 3 Importers The trade partners of the world s top 3 importing countries of Surgical Instruments are discussed in the following section. The average percentage share of exported value of Surgical Instruments to top 3 importing countries is evaluated and presented in the form of graphs. Figure 5: Trade Partners of USA (Avg. % Share in Export Value Last 5 Years) Ireland 8 Germany 12 Mexico Figure 6: Trade Partners of Germany (Avg. % Share in Export Value Last 5 Years) Japan 8 Switzerland 8 USA

7 [Trade Analysis Surgical Instruments, Pakistan] 6 Figure 7: Trade Partners of Germany (Avg. % Share in Export Value Last 5 Years) Germany 9.5 Ireland 20.2 USA From the above graphical descriptions, it is clear that Pakistan is not among the top exporters of Surgical Instruments. In fact, Pakistan s share in exports to these high potential markets is miserably low i.e 26 th in the world for USA with negligible share and 30 th in the world for Germany with share of 1 percent. Whereas, Pakistan does not export to Netherlands. Keeping this in view, Pakistani exporters should target the biggest markets with huge export potential by offering high value products. Price Comparisons The following price comparison of Surgical Instruments show the prices charged by exporting countries for major product mix. Figure 8: Price Comparison for Instruments for Medical, Surgical or Veterinary Sciences (HS , US $ / Ton) 600, , , , , , , , , , , , , , , ,000 Curaçao Luxembourg Switzerland Cyprus Norway Finland Bulgaria Georgia Estonia Uzbekistan Pakistan s export price for this category is not available.

8 [Trade Analysis Surgical Instruments, Pakistan] 7 Figure 9: Price Comparison for Dental Science Instruments (HS , US $ / Ton) 1,400,000 1,200,000 1,000, , , , ,000-1,159, , ,833 Serbia Switzerland New Zealand 465, , , , , , ,000 Poland Malaysia Jordan Belgium South Africa Germany Lebanon Pakistan s export price for this category is not available. Figure 10: Price Comparison for Electro-Diagnostic Apparatus (HS , US $ / Ton) 2,500,000 2,000,000 2,048,600 1,500,000 1,000,000 1,009, , , , , , , , , ,897 Iceland Uruguay Switzerland Cyprus Latvia Germany Japan Russia Finland South Africa Pakistan s share in exports of Electro-Diagnostic Apparatus is negligible. 5. Pakistan s Export Trade and Tariff There are certain conditions which are applied on exports of surgical goods from Pakistan. An incentive of 5% Export Rebate is given on surgical instruments. General Sales Tax of 17% is applied on import of raw material for Surgical Instruments, while there is a 5% custom duty on exports of these commodities.

9 [Trade Analysis Surgical Instruments, Pakistan] 8 6. Prominent International Trade Fairs Name of Trade Shows Location Frequency Web Links Arab Health Dubai International Convention and Exhibition Centre, UAE me.html KIMES COEX, Seoul, Korea IWA Outdoor Classics Medicare Taiwan Vietnam Medi-Pharm Expo Quality Expo Exhibition Centre Nürnberg, Germany Taipei World Trade Center, Taipei City, Taiwan Medi-Pharm Expo, Ho Chi Minh City, Vietnam Jacob K. Javits Convention Center, New York, USA om/quality

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