The devastating fire at the cargo village of Hazrat Shahjalal International Airport (HSIA) is set to hit Bangladesh’s pharmaceutical industry hard, with losses potentially exceeding Tk 40 billion.

Industry leaders said 45 major companies reported destruction of raw materials and machinery worth around Tk 2.0 billion, threatening the production of essential medicines, including antibiotics, cancer drugs, diabetes treatments, and vaccines.

The Bangladesh Association of Pharmaceutical Industries (BAPI) disclosed the figures at a press conference on Tuesday.

Speaking at the conference, BAPI Secretary General Zakir Hossain said that 90 per cent of the raw materials used in the pharmaceutical sector are imported from China, India and various European countries.

He explained that emergency and high-value raw materials are usually transported by air, while bulk shipments typically arrive by sea.

Out of 250 active pharmaceutical companies, 45 have so far reported losses of raw materials worth about Tk 2.0 billion, including essential ingredients used in the production of antibiotics, vaccines, hormones, and medicines for diabetes and cancer.

The loss of these raw materials will disrupt the production of related medicines, while the damage to imported spare parts and machinery will require re-imports — a time-consuming process, he said.

Mr Hossain noted that the initial estimated loss could rise once data from all affected companies are received.

‘Each raw material is directly linked to the production of multiple finished products, and the fire at the cargo village could result in an overall economic impact of around Tk 40 billion on the pharmaceutical sector,’ he said.

The BAPI leader also expressed concern over the storage conditions of goods unloaded at other airports, warning that many raw materials require controlled temperatures.

‘Any disruption in temperature control could lead to further damage,’ he cautioned, adding that a significant portion of the burnt raw materials had been approved by the Narcotics Department — a process he described as complex and time-consuming when repeated for re-imports.

BAPI Treasurer Halimuzzaman said that medicine supplies remain stable for now but warned that delays in action could lead to shortages in the coming months.

‘There is no immediate fear of a shortage. However, if the next steps are not taken promptly, a supply crisis may emerge,’ he said.

The association presented a 14-point list of demands, including the refund of import duties, taxes, and VAT already paid on goods destroyed in the fire to help affected companies recover and maintain production.

It also called for the waiver of bank charges and interest on Letters of Credit (LCs) opened for the damaged goods, and the re-import of destroyed consignments on easy terms without requiring new margins, charges, or interest from banks.

BAPI further demanded the waiver of all customs-related charges and fees — including customs duty, VAT, advance income tax, and other levies — on the burnt consignments.

Other demands included partial operation of the Customs House at the cargo village after office hours and on weekends to facilitate the release of goods, especially those requiring cold-chain maintenance.

The association also urged the authorities to expedite cargo operations at HSIA and to convene an immediate coordination meeting with representatives from concerned agencies — including the DGDA, Narcotics Department, Customs, NBR, Civil Aviation, and other regulatory bodies — to address the issues.