Medicine Price Deregulation Sparks New Pakistan Pharma Row
ISLAMABAD: Pakistan’s medicine pricing debate returned to the national spotlight on July 21 after representatives of the Pakistan Young Pharmacist Association claimed that deregulation of drug prices had pushed several multinational pharmaceutical companies out of the country. The issue was raised during a news conference in Islamabad, where pharmacists and legal representatives warned of wider consequences for patients, hospitals and the national economy.
PYPA representatives alleged that five multinational firms had exited Pakistan after the government removed mandatory price controls on medicines roughly two years ago. They claimed the policy shift caused an estimated economic loss of around $5 billion and weakened a pharmaceutical market that had depended for decades on hundreds of local allopathic manufacturing units.
The association argued that Pakistan’s pharmaceutical industry remains heavily dependent on imported raw material, with a major share historically coming from India. Its representatives said this dependence has limited domestic resilience and made the country vulnerable to pricing shocks, supply disruptions and reduced competition when major international companies scale down or leave.
PYPA President Dr Hina Shaukat raised concerns about the availability and regulation of medical devices, claiming that some important manufacturing activity had shifted away from Pakistan over past decades. She also criticised the absence of adequate testing capacity for medical devices, warning that weak oversight could expose patients to unsafe syringes and other substandard products.
The Drug Regulatory Authority of Pakistan offered a different view. Drap Chief Executive Officer Dr Obaidullah Malik rejected the claim that government policy or the regulator had forced multinational firms to quit the country. He said some companies had entered joint ventures or changed regional business priorities, choosing to focus on other markets rather than continuing operations in Pakistan.
The pricing dispute also touched on the difference between government procurement rates and retail market prices. PYPA Chairman Mohammad Usman Hundal cited several examples in which medicines bought by the Punjab government were reportedly priced far lower than equivalent branded products sold in the open market. He used these comparisons to argue that stronger state regulation could help protect ordinary patients from steep medicine costs.
Legal representatives at the news conference warned that if medicine prices continued to rise sharply, public-sector hospitals could struggle to provide free medicines to low-income patients. Their position was that pharmaceutical companies are commercial businesses and cannot be expected to voluntarily sacrifice profit unless a clear regulatory structure safeguards affordability.
The background to the controversy dates back to February 2024, when the caretaker federal cabinet removed Drap’s control over prices of many medicines. Supporters of deregulation argued at the time that more flexible pricing could improve availability and prevent shortages, while critics warned that it would place essential drugs beyond the reach of many families already facing inflation and healthcare costs.
For Pakistan, the debate has direct public health and economic implications. Medicine affordability affects household budgets, hospital procurement, chronic disease treatment and the ability of provincial governments to sustain free-drug programmes. At the same time, investors and manufacturers argue that pricing rules must also allow enough commercial viability to keep medicines available.
The next phase of the issue will depend on whether federal health authorities, Drap and provincial governments review the pricing framework or maintain the current market-led approach. Patient groups and pharmacy stakeholders are likely to keep pressing for stronger regulation, while the government will need to balance affordability with supply stability and pharmaceutical investment.