The government has decided to set up National Vaccine Fund as a dedicated, professionally managed investment vehicle anchored by the State to produce vaccine locally.
This fund will be established under new vaccine policy.
Under this policy, approved vaccine manufacturers may be allowed 35% withholding of export proceeds in dollars to manage expenses in export markets.
Special Assistant to the Prime Minister on industries and production, Mr. Haroon Akhtar Khan, chaired a high-level meeting on the local manufacturing of vaccines on wednesday, marking a major step toward health security and industrial self-reliance in Pakistan. The meeting was co-chaired by Federal Minister for National Health Services, Regulations and Coordination, Mr. Mustafa Kamal.National Vaccine Policy Ready To Produce Vaccine
SAPM said during the meeting that new vaccine police was ready to produce vaccine locally.
Sources told that the government will launch the Long-term contracts / buy-back contracts, developed as part of the immediate actions under this Policy.
Under this Policy, the Government of Pakistan will establish a National Vaccine Fund as a dedicated, professionally managed investment vehicle anchored by the State but operated on commercial principles.
The Fund will provide patient, risk-sharing capital through equity, quasi-equity, and milestone-based instruments, targeting vaccine scale-up, clinical development, regulatory readiness, and shared GMP infrastructure.
Fund investments would be tightly aligned with national immunization priorities and conditional Government offtake commitments, ensuring that capital, procurement, and regulation move in lockstep.
The Fund will be a key financing instrument to ensure adequate capital is available in the market. The fund shall be capitalized through a combination of Federal contributions, development finance institutions, and co-investment from private and strategic partners.
It may be set as a Special Purpose Vehicle (SPV) for investment or a Section 42 Company. The Fund would convert procurement guarantees into bankable projects, accelerate progress toward WHO regulatory maturity, and enable Pakistan to move from episodic vaccine imports to a sustainable, export-capable domestic manufacturing ecosystem.
The establishment of Fund is of paramount importance because vaccine manufacturing requires large upfront capital, long development timelines, and sustained regulatory and clinical investment well before the first commercial dose is sold. Similar instruments have been used as complementary supports to government buy-back and vaccine development in Brazil, South Korea, and Indonesia.
The government will expedited regulatory approvals for the vaccines manufactured under this Policy. Government will ensure suitable availability of land and utilities by classifying vaccines as a greenfield investment for power tariffs.
