Dhaka Airport Fire Pharma Losses: Tk 4,000cr Toll

Tuesday, October 21, 2025
4 mins read
Dhaka Airport Fire Pharma Losses- Tk 4,000cr Toll
Photo Credit: Daily Star

A fire tore through the cargo village at Dhaka’s Hazrat Shahjalal International Airport on 18 October 2025, gutting pharmaceutical raw materials valued at Tk 200 crore and forecasting Dhaka airport fire pharma losses up to Tk 4,000 crore. The Civil Aviation Authority of Bangladesh (CAAB) deployed over 40 fire units. Flammable cargo fueled the blaze. Flights paused for six hours amid the chaos.

Bangladesh’s pharmaceutical industry anchors South Asia’s generic drug market, meeting 98% of local demand and exporting to over 150 nations. This Dhaka airport fire pharma losses incident risks production halts, price hikes, and supply shortages across the region. Neighbouring countries reliant on Bangladeshi exports face potential disruptions, amplifying pressures on already strained public health systems.

Inferno at Cargo Village: Response and Containment

The fire erupted around 3:00 PM on 18 October 2025 in the cargo village of Hazrat Shahjalal International Airport. Smoke billowed from warehouses storing imports. Firefighters battled flames for hours. The blaze affected multiple cargo bays. Authorities evacuated the area swiftly.

CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq briefed reporters on 20 October 2025. He said over 40 fire vehicles from the Fire Service, Army, Navy, and Air Force tackled the inferno. Siddiq noted: “Over 40 fire vehicles from the Fire Service, Army, Navy, and Air Force were deployed to bring the blaze under control.” He stressed no obstructions hindered responders. All airport fire personnel train daily per International Civil Aviation Organisation standards.

Flammable materials in the cargo intensified the spread. Siddiq explained these substances complicated initial containment efforts. No casualties occurred. Operations resumed at 9:06 PM that day. Domestic and international flights diverted briefly. An IndiGo flight from Delhi rerouted to Kolkata. An Air Arabia service from Sharjah landed in Chittagong.

The Ministry of Civil Aviation and Tourism issued a statement confirming full control of the fire. It read: “The fire has been completely brought under control.” The ministry pledged: “Steps will be taken to identify the source of the fire and implement measures to prevent such incidents in the future.” Around 37 firefighting units participated, backed by military branches.

This swift response limited direct human harm. Yet the Dhaka airport fire pharma losses extended far beyond the tarmac.

Bangladesh Pharma Raw Materials Destroyed: Initial Toll

Pharmaceutical consignments bore the brunt. Raw materials for drug manufacturing charred in the heat. The Bangladesh Association of Pharmaceutical Industries (BAPI) assessed the damage at a press conference on 20 October 2025.

BAPI Secretary General Md Zakir Hossain disclosed: “Raw materials worth around Tk 200 crore were burnt in the fire, adding that the figure may rise once reports from all member companies are received.” These imports included active ingredients and excipients essential for antibiotics, analgesics, and cardiovascular drugs. Square Pharmaceuticals confirmed losses of Tk 180 million in preliminary filings.

The destruction hit at a critical juncture. Bangladesh imports 95% of its pharma raw materials from India, China, and Europe. The cargo village handles 70% of such shipments. This batch represented weeks of planned production. BAPI leaders warned the incident could disrupt assembly lines if replacements delay.

No specific products faced immediate shortages. Stockpiles buffer short-term needs. Yet experts predict cascading effects. One industry analyst noted processing times stretch one to three months. The fire consumed barrels and pallets stored for customs clearance.

Authorities catalogued affected goods post-extinguishment. Fire Service officials logged temperatures exceeding 800 degrees Celsius in hotspots. This heat rendered materials unusable. BAPI urged expedited import protocols to mitigate gaps.

Tk 4000cr Blow Pharma Industry Fire: Projected Fallout

The Tk 4000cr blow pharma industry fire stems from downstream impacts. Destroyed inputs translate to forgone outputs. Hossain elaborated: “The damage to raw materials would eventually impact finished products, estimating the overall economic loss at around Tk 4,000 crore.”

This figure factors production halts, rework costs, and export forfeits. Bangladesh’s pharma sector generates Tk 35,000 crore annually. It employs 100,000 directly. A Tk 4,000 crore dent equals 11% of yearly revenue. Exports to South Asia alone top Tk 5,000 crore.

BAPI anticipates no instant price surges. Domestic supplies suffice for now. However, prolonged delays could inflate costs by 10-15%. The association pressed for swift restoration of import channels. Hossain added: “The medicine supply chain might be disrupted if the destroyed import system for raw materials is not restored promptly.”

Garment exports suffered too. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) tallied Tk 1,000 crore in fabric losses. Total cargo damage nears Tk 12,000 crore or $1 billion. International Air Express Association President Kabir Ahmed projected: “The overall direct and indirect impact on imports and exports could exceed $1 billion.”

This multi-sector hit underscores logistics frailties. The airport processes 500,000 tonnes of cargo yearly. Pharma comprises 15% of volumes.

Airport Cargo Fire Bangladesh Impact: Broader Repercussions

Airport cargo fire Bangladesh impact rippled through trade. Flight suspensions idled 200 planes. Delays affected 50,000 passengers. Customs halted for 12 hours. Exporters missed deadlines to Europe and the US. The interim government flagged investigations into recent blazes. This marked the third major fire in a week. A garment factory inferno in Dhaka killed 16 on 15 October. A chemical warehouse blaze followed. Officials probe sabotage links. The Ministry of Civil Aviation vowed thorough inquiries.

Economic bodies decried inadequate fire safety. The Dhaka Customs Agents Association cited coordination lapses in a release. Delays stemmed from mismatched hydrant pressures between airport and city services. Prothom Alo reported: “There is severe mismanagement and lack of coordination among those responsible for airport operations.”

Insurance claims mount. The Insurance Development and Regulatory Authority (IDRA) warned sabotage voids policies. Importers face out-of-pocket recoveries. Total insured losses hover at Tk 5,000 crore. South Asian partners monitor closely. India supplies 40% of Bangladesh’s pharma inputs. Disruptions could redirect shipments, easing pressures elsewhere but hiking Bangladeshi costs.

Background: String of Industrial Blazes

Bangladesh grapples with frequent fire outbreaks. Garment hubs claim 500 incidents yearly. The 2013 Rana Plaza collapse killed 1,134, spurring reforms. Yet enforcement lags. Airport fires trace to 2018, when a cargo blaze damaged electronics. Flammable storage norms tightened post-that. Current rules mandate segregated zones. The 18 October event exposed gaps in enforcement.

Pharma’s growth amplifies risks. The sector expanded 12% in 2024, per Bangladesh Investment Development Authority data. Imports surged 15%. Cargo volumes strained facilities built in 1980.

What’s Next: Probes and Safeguards

Investigators comb wreckage for ignition sources. CAAB targets a report by 25 October 2025. The ministry eyes enhanced surveillance. BAPI seeks duty waivers on emergency imports. Repairs to cargo bays start this week. Full operations resume by November. Industry pledges resilience drills.

In conclusion, the Dhaka airport fire pharma losses expose supply chain perils, demanding urgent fortification to protect South Asia’s health lifeline.

Published in SouthAsianDesk, October 21st, 2025

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