Page 33 - CMA Journal (Jan-Feb 2026)

Focus Section

Governance Benefits of Blockchain standalone solution. Its success depends on regulatory
integration, legal recognition of digital records, prepared
Blockchain is suggested as an organizational solution to infrastructure, and coordinated stakeholder involvement.
the lack of transparency in complex supply chains. Its In the absence of institutional alignment, technological
cryptographically recorded transactions are more adoption may remain procedural rather than
resilient than entries in central databases, and its inability transformative. A gradual approach—beginning with
to revise an entry without network consensus makes it pilot projects in high-risk categories, integration into
less vulnerable to data manipulation than centralized DRAP systems, and targeted capacity-building—is a
systems (Casino et al., 2019). From a governance more realistic path, positioning blockchain as a
perspective, blockchain enhances traceability, conditional governance reform tool rather than a
auditability, and transparency by providing end-to-end technological panacea.
visibility of product movement and minimizing
information asymmetry among supply chain participants References
(Kshetri, 2018). This is particularly relevant in the
 Adekola, A. D., & Dada, S. A. (2024). The role of Blockchain technology in ensuring
pharmaceutical system to curb diversion and counterfeit pharmaceutical supply chain integrity and traceability. Finance & Accounting Research
infiltration. Its unalterable auditing record can help Journal, 6(11), 2120-2133. https://doi.org/10.51594/farj.v6i11.1700
assess the authenticity of drugs in real-time, aligning  Anam, M. Z., Sarkar, S., Bari, A. B. M. M., Islam, A. R. M. T., & Raihan, A. (2025). Exploring
blockchain technology adoption challenges in the pharmaceutical industry to promote
with regulatory schemes like the U.S. Drug Supply Chain sustainability: A Pythagorean fuzzy approach. Next Sustainability, 6, 100162-100162.
Security Act (Kannarkat et al., 2024; Mackey & Nayyar, https://doi.org/10.1016/j.nxsust.2025.100162
 Bali, V., Khanna, T., Soni, P., Gupta, S., Chauhan, S., & Gupta, S. (2022). Combating drug
2017). However, its effectiveness depends on the counterfeiting by tracing ownership transfer using blockchain technology. International
integration of regulations and institutional preparedness. Journal of E-Health and Medical Communications (IJEHMC), 13(1), 1-21.
 Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of
Feasibility and Readiness in Pakistan blockchain-based applications: Current status, classification and open issues. Telematics
and informatics, 36, 55-81.
The pharmaceutical industry in Pakistan cannot  Fayez, M., Begum, R., Khan, L., Ahmad, M., Ahmed, W., & Fatima, S. (2024). Bridging the
Digital Divide: Affordability and Adoptability of Health Tech in Pakistan’s Evolving
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appropriate institutions, regulations, and infrastructure. https://doi.org/10.21203/rs.3.rs-5138453/v1
 Islam, M. A., Chuity, S. M., Sultan, T., Baul, S., Ahamed, J., & Mobin, D. M. I. (2024).
Integrating blockchain into traditional governance Blockchain technology is revolutionizing the pharmaceutical industry's drug supply
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Advancements, 1081-1088. https://doi.org/10.1145/3723178.3723321
of digital capabilities, and fragmented processes involving
 Kannarkat, J. T., Denham, M. W., & Sarpatwari, A. (2024). Improving drug supply chain
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Objectives. International Journal of Information Management, 39, 80.
integrated data governance systems further complicates
 Mackey, T. K., & Nayyar, G. (2017). A review of existing and emerging digital technologies
standardization and system integration. to combat the global trade in fake medicines. Expert opinion on drug safety, 16(5),
587-602.
Digital preparedness is still limited, especially among  Nazir, M. A., & Khan, R. S. (2022). The Impact and Factors Affecting Information and
small and medium-sized pharmaceutical firms. Transi- Communication Technology Adoption in Small and Medium-Sized Enterprises: A
Perspective from Pakistan. Journal of Organisational Studies and Innovation, 9(1), 20-46.
tioning from paper-based systems to distributed ledgers https://doi.org/10.51659/josi.21.145
requires technical skills, infrastructure upgrades, and  Organization, W. H. (2017). 1 in 10 medical products in developing countries is
substandard or falsified. Online im Internet: URL:< http://www. who.
compliance adjustments, imposing a disproportionate int/en/newsroom/detail/28-11-2017-1-in-10-medical-products-in-developing-countrie
financial and operational burden on SMEs (Adekola & s-issubstandard-or-falsified>(Abruf: 09.10. 2018).
Dada, 2024; Islam et al., 2024). High capital costs, cyberse-  Oriekhoe, O. I., Ashiwaju, B. I., Ihemereze, K. C., Ikwue, U., & Udeh, C. A. (2024).
BLOCKCHAIN TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT: A COMPREHENSIVE
curity demands, and maintenance costs further hinder REVIEW. International Journal of Management & Entrepreneurship Research, 6(1),
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 Ozawa, S., Evans, D. R., Bessias, S., Haynie, D. G., Yemeke, T. T., Laing, S. K., & Herrington, J.
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the legality of digital records (Riedel, 2024). Additionally,
 Rasheed, H., Hoellein, L., Bukhari, K. S., & Holzgrabe, U. (2019). Regulatory framework in
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reliance on legacy systems hamper sustainable opera- Policy Pract, 12, 23. https://doi.org/10.1186/s40545-019-0184-z
 Riedel, T. (2024). Addressing Challenges: Adopting Blockchain Technology in the
tions (Fayez et al., 2024; Nazir & Khan, 2022). These factors Pharmaceutical Industry for Enhanced Sustainability. Sustainability, 16(8), 3102-3102.
suggest that blockchain implementation in Pakistan https://doi.org/10.3390/su16083102
should be gradual, policy-oriented, and accompanied by  Vijaya, B. J., Chandrasekhar, D., Srihari, D., Padmasai, B., Vardhan, M. H., & Sriram, A.
(2026). Secure and Transparent Blockchain-Enabled System for Pharmaceutical Drug
targeted capacity-building, rather than a single, Authentication. Milestone Transactions on Medical Technometrics, 4(1), 312-323.
system-wide rollout.
About the Author: The writer is a Fellow member of ICMA and a
Conclusion seasoned finance leader with over 15 years of diversified experience
across construction, FMCG, manufacturing, and multinational
Poor and counterfeit medicines continue to expose environments in the Middle East and South Asia. Currently serving
vulnerabilities in Pakistan’s pharmaceutical supply chain, as Group Finance Manager at Lootah Group, UAE, he specializes in
particularly in traceability, documentation integrity, and IFRS compliance, financial controlling, digital transformation, ERP
regulatory integration. Although blockchain provides a implementation, and strategic business partnering. His expertise
governance-focused system to improve auditability and spans financial governance, cost optimization, VAT
end-to-end traceability through immutable transaction implementation, and performance management, all contributing
records and digital verification, it cannot serve as a to sustainable growth and operational excellence.
ICMA’s Chartered Management Accountant, Jan-Feb 2026 31