The government has ordered a review of the existing drug pricing formula to ensure medicines remain fairly priced, warning that increases without valid justification will not be accepted.
Economic Affairs Minister Ahad Cheema, who chaired a meeting of the Drug Regulatory Authority of Pakistan (Drap) on Monday, directed officials to expedite pending drug pricing cases after being briefed that their case by case evaluation was almost complete. He also called for a pricing mechanism that prioritises patients without creating unnecessary hurdles for importers or pharmaceutical companies.
The meeting was attended by Health Secretary Momin Agha, Drap Chief Executive Officer Dr Obaidullah Malik and other senior officials. Cheema acknowledged the progress made by Drap officials and appreciated the efforts of Climate Change Minister Dr Musadik Malik in completing the evaluation.
Officials informed the meeting that sufficient quantities of the trivalent influenza vaccine recommended by the World Health Organisation were available in the market. Drap had withdrawn the vaccine’s hardship case because its prices were controlled in the international market.
Drap is also reviewing the existing drug pricing formula and examining provisions that could prevent fair and accurate price determinations. Cheema suggested subscribing to specialised international drug pricing databases to strengthen independent assessments and provide more reliable benchmarks. He said international price comparisons could be useful but must be supported by independent checks and balances.
Pharma Industry Seeks Input
The Pakistan Pharmaceutical Manufacturers Association (PPMA) urged the government to consult the industry during the formula review. PPMA Vice Chairman Usman Shaukat said manufacturers shared the government’s objective of keeping medicines affordable and accessible, adding that a fair, transparent and predictable mechanism would benefit both patients and the industry.
Shaukat cautioned that affordability and availability were closely linked, arguing that unjustified price increases were not the only risk to patients. He said rising costs of active ingredients, packaging, energy, freight and regulatory compliance, much of which is imported and dollar-dependent, could make products unviable when prices remain frozen for years.
This could lead manufacturers to halt production, creating shortages and pushing patients towards costlier imported alternatives, smuggled stock or spurious medicines.
The PPMA supported international benchmarks and independent databases, provided comparisons account for Pakistan’s business costs, financing expenses, exchange rate exposure and the country’s comparatively low medicine prices.
Shaukat proposed that the revised formula include a clear, time-bound and rules-based mechanism with periodic Consumer Price Index and cost-linked adjustments, to prevent hardship cases from accumulating and pricing decisions from being delayed for years.
The post Govt to Review Drug Pricing Formula for Fairer Prices appeared first on ProPakistani.