KARACHI: The pharmaceutical industry has credited Pakistan’s recent decision to deregulate prices of non-essential medicines for restoring the supply of previously unavailable drugs, ending a prolonged shortage that disrupted patient care across the country.
“The policy shift has addressed critical supply gaps. Medicines that had vanished due to unviable prices are now back, offering relief to patients who were left at the mercy of black markets or counterfeits,” said Tauqeer-ul-Haq, Chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA), while speaking to media in Karachi.
For several years, manufacturers had halted production of various drugs—including antibiotics, painkillers, and psychiatric treatments—due to outdated pricing formulas that made continued manufacturing financially unsustainable.
“When a tablet priced at Rs3 can’t be produced at cost, it disappears. Deregulation allowed us to price it at Rs6 and bring it back to patients,” Haq added. “The most expensive medicine is the one that isn’t available.”
New pricing policy revives pharma production
Under the revised framework, pharmaceutical firms are now permitted to adjust prices of non-essential medicines in line with inflation and rising production costs. However, over 460 life-saving and essential medicines remain under price regulation.
Tauqeer-ul-Haq emphasized that this balanced approach enables local manufacturers to sustain production without compromising affordability on critical drugs. He noted that the immediate effect has been encouraging:
- Production of previously discontinued medicines has resumed
- Local pharma companies are increasing capacity
- Multinationals are re-evaluating decisions to scale down or exit
Backlog cleared, supply restored
The revival was further accelerated by the resolution of long-pending hardship cases, many of which had been delayed for up to three years. With regulatory hurdles eased, essential medicines like insulin, cardiac drugs, and antibiotics have returned to pharmacy shelves.
“The intent is not to increase prices indiscriminately, but to ensure sustainable production and eliminate dangerous alternatives,” said the PPMA chairman.
Data shows recovery in market size
According to the industry, Pakistan’s pharmaceutical market exceeded Rs1.049 trillion by March 2025, as reported by IQVIA. While this growth includes one-time price adjustments and supply normalization, experts estimate the real organic growth to be around 15–16%, suggesting broader market stabilization.
Building long-term resilience in pharma
Tauqeer-ul-Haq expressed optimism that the policy shift will attract renewed investment into Pakistan’s pharmaceutical sector, especially in:
- Local manufacturing of Active Pharmaceutical Ingredients (APIs)
- Public-private partnerships, including under the CPEC umbrella
- Export potential, as firms aim for international certifications
- Job creation across pharma-related professions
He also pointed out the long-term benefits of reduced dependence on imports, improved infrastructure, and the possibility of growing Pakistan’s $700 million pharma export base.
“This isn’t just about business,” he reiterated. “It’s a public health imperative."
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