The government is considering changes to the Drug Regulatory Authority of Pakistan’s drug pricing framework to strengthen oversight of medicine price increases and protect consumers from unjustified costs.
Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema directed the Ministry of National Health Services and DRAP to urgently review the existing pricing formula, including the Hardship Policy and the composition of the DRAP Policy Board.
Cheema said the current mechanism for determining medicine price increases requires a comprehensive review. He directed DRAP to introduce greater scrutiny and independent checks so that cost pressures are not automatically passed on to consumers through higher medicine prices.
The minister also ordered officials to finalize revised rules for the Hardship Policy. He said the policy should provide relief only in genuine cases and should not become a way for companies to transfer disproportionate commercial costs to patients.
Cheema further directed that a Health Economist and a Public Health expert be included on the DRAP Policy Board to strengthen expertise and evidence based decision making. DRAP and the Ministry of National Health Services agreed with the proposed changes.
The meeting also examined importer and retailer margins. Cheema said importers that receive tax concessions or other government relief under the Hardship Policy should also consider rationalizing their own margins rather than passing the full cost on to consumers. DRAP was directed to examine existing margins, including cases where they may be around 40 percent, and propose adjustments under the revised rules.
The meeting also reviewed pricing mechanisms for originator and existing brands. DRAP officials said originator brands currently use international reference pricing based on prices in neighboring and other relevant countries. Cheema directed DRAP to introduce independent verification of international reference prices and strengthen checks within the overall drug pricing system.
Cheema said drug pricing decisions directly affect millions of households and that the regulatory framework must balance the sustainability of the pharmaceutical sector with medicine affordability and consumer protection.
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