Citi Pharma to set up subsidiary in Uzbekistan

KARACHI: Citi Pharma Limited has signed an agreement with Uzbekistan’s Namangan Region deputy governor to establish a wholly-owned subsidiary with a total estimated cost of $3 million.

Pakistan is catalysing the stability in Afghanistan to grow trade and investment relations and promote business-to-business contacts with the business and trading communities of Central Asia.

Prime Minister Imran Khan will be visiting Tajikistan, and also attend the 20th Shanghai Cooperation Organization Council of Heads of State (SCO-CHS) Summit in Dushanbe.

“The prime minister’s visit is part of Pakistan’s deepened engagement with Central Asia through “Vision Central Asia” policy, having revitalised focus in five key areas of political ties, trade and investment, energy and connectivity, security and defence, and people-to-people contacts,” Foreign Office spokesperson Asim Iftikhar said.

The proposed subsidiary of Citi Pharma will produce syrups, liquids, psychotropic products and general products, a statement said.

The project will be completed in one year; whereby, Citi Pharma will contribute $1 million as equity, while the rest will be provided by the local and international banks at subsidised rates.

Uzbekistan has also sanctioned a land area of 120.35 acres (free-of-charge) for the purpose. Further, the project will have a tax-free status for a period of 10 years.

“Citi’s subsidiary will be producing the substitute of the formulation products, which Uzbekistan is currently importing from different countries,” the company said.

“Citi Pharma will be providing API materials to its subsidiary and other pharmaceutical companies in Uzbekistan from Pakistan and also will get a foothold in Uzbekistan to develop the market.”

Citi Pharma Limited, the manufacturer of Paracetamol, attracted investment of Rs2.33 billion by selling 72.69 million shares to the institutional and retail investors at the Pakistan Stock Exchange (PSX) this June.

Citi Pharma is expanding its existing pharmaceutical capacities drastically and is also introducing new products.

The company posted a net profit of Rs252.436 million for the nine-month period ended March 31, 2021, which is 152 per cent higher than the profit of Rs100 million in the corresponding period.