The government will create a Vaccine Fund

The government has decided to establish a National Vaccine Fund as a dedicated, professionally managed investment vehicle anchored by the state to enable local vaccine production.

The fund will be established under a new vaccine policy.

Under this policy, approved vaccine manufacturers may be allowed to retain up to 35% of their export earnings in dollars to manage expenses in export markets.

Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, chaired a high-level meeting on local vaccine production on Wednesday, marking a major step towards health security and industrial self-sufficiency in Pakistan. The meeting was jointly chaired by the Federal Minister of National Health Services, Regulations and Coordination Mustafa Kamal.

During the meeting, SAPM said the new vaccine policy was ready to promote local vaccine production. Sources told The Express Tribune that the government will launch long-term contracts and buy-back contracts as part of the immediate actions under the policy.

According to the policy, the Government of Pakistan will establish a National Vaccine Fund as a dedicated investment vehicle that is professionally managed by the state, but will operate on commercial principles.

The fund will provide patient, risk-sharing capital through equity, quasi-equity and milestone-based instruments aimed at vaccine scale-up, clinical development, regulatory readiness and shared Good Manufacturing Practice (GMP) infrastructure.

Capital investments will be closely aligned with national vaccination priorities and conditional government commitments, ensuring that funds, supplies and regulations move smoothly.

The fund will serve as a key financial instrument to ensure adequate availability of funds in the market. It will be funded through a combination of federal contributions, development finance institutions and co-investment from private and strategic partners.

It can be set up as a special purpose vehicle (SPV) for investment or as a Section 42 company. The fund is expected to turn supply guarantees into financeable projects, accelerate progress towards World Health Organization (WHO) regulatory maturity and enable Pakistan to transition from episodic vaccine imports to a sustainable, export-capable domestic production ecosystem.

The establishment of the fund is considered critical, as vaccine manufacturing requires large initial capital, long development timelines, and ongoing regulatory and clinical investment long before the first commercial dose is sold. Similar instruments have been used as complementary support mechanisms for government vaccine acquisition and development programs in countries such as Brazil, South Korea, and Indonesia.

The government will expedite regulatory approvals for vaccines manufactured under the policy and ensure adequate availability of land and utilities by classifying vaccines as greenfield investments for energy tariff purposes.