Government Introduces New Plan to Tackle Drug Pricing Challenges by curtailing the powers of the Drug Regulatory Authority of Pakistan (DRAP) and establishing an independent body specifically focused on overseeing the pricing of life-saving drugs.
The Pakistan Pharmaceutical Manufacturers’ Association (PPMA) has expressed optimism about the proposed regulatory body’s potential to expedite pending drug pricing cases and ensure that future pricing decisions are managed efficiently, thereby preventing medicine shortages.
A senior health ministry official highlighted that in many countries, drug pricing is handled separately from drug registration authorities. Implementing this separation in Pakistan could help address the persistent issue of drug shortages in the market.
Prime Minister Shehbaz Sharif recently directed the separation of the pricing department from DRAP, making it an independent entity. A committee led by Law Minister Azam Nazeer Tarar is actively considering this change.
Law Minister Azam Nazeer Tarar emphasized that regulation and pricing are distinct functions and suggested that provincial representation should be included in the new pricing body. The committee is reviewing global and regional practices in drug pricing regulation to guide their decisions.
In February, 2024 the caretaker federal cabinet, following a recommendation from the Ministry of National Health Services, approved the deregulation of prices for non-essential medicines.
Usman Shaukat, a member of the PPMA, praised the deregulation as a positive step to alleviate concerns among manufacturers and importers about rising input costs and to ensure the availability of medicines in the country. He stressed the importance of periodic price adjustments for essential medicines and the swift resolution of hardship cases.
Usman Shaukat, a former member of the Central Executive Committee (CEC) of PPMA, believes that the formation of a new regulatory body could facilitate these adjustments and encourage multinational companies that had previously exited the Pakistani market to resume their operations.
