Pakistan’s pharmaceutical industry has opposed proposed changes to the drug pricing mechanism, warning that frequent policy changes could disrupt medicine supplies, hurt investment and weaken efforts to keep essential medicines affordable.
Industry officials said the Drug Pricing Policy 2018 was developed after consultations with stakeholders and endorsed by the Supreme Court. They were responding to Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema’s direction to the health ministry and DRAP to revise the pricing framework, including the Hardship Policy and DRAP Policy Board.
Under the existing policy, the government regulates prices of essential and life saving medicines, which account for about 40 percent, or roughly 500 molecules, of medicines sold in Pakistan. The policy allows annual price increases of up to 70 percent of CPI inflation and also benchmarks prices against India, Bangladesh and Sri Lanka.
Industry officials said essential medicine prices were raised by a maximum of 4.9 percent in fiscal year 2026, compared with 7 percent CPI inflation, and remained below prices in neighboring countries. They argued that the existing system provides a transparent framework while taking into account the industry’s higher production costs.
The industry urged the government to retain the current pricing and hardship mechanisms for longer, saying repeated interventions create uncertainty and could affect medicine availability, quality, investment and exports. Officials said the sector’s profit margins had risen from about 3 percent two years ago to around 10 percent after the 2024 deregulation of non essential medicines.
They also cited India’s pharmaceutical exports, which they said were close to $30 billion in 2026, as an example of how consistent pricing policies and greater deregulation can support industry growth. They warned that tighter margins could reduce companies’ ability to invest in production, improve quality and expand exports.
The industry said deregulation of non essential medicines had also increased competition on prices and quality, arguing that competition ultimately benefits patients while allowing pharmaceutical companies to earn enough to reinvest in the sector.
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