Pakistan Pharma Industry Opposes Changes To Drug Pricing Policy

Pakistan's pharmaceutical industry has resisted 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.

Key points

• Industry authorities stated the Drug Pricing Policy 2018 was developed after consultations with stakeholders and endorsed by the Supreme Court.
• Authorities stated the sector's profit margins had risen from regarding 3 percent two years ago to around 10 percent after the 2024 deregulation of non essential medicines.
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• It they stated were close to $30 billion in 2026, as an example of how consistent pricing policies and greater deregulation can backing industry expansion.
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Industry authorities stated 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 administration regulates costs of essential and life saving medicines. It account for regarding 40 percent, or roughly 500 molecules, of medicines sold in Pakistan. The policy allows annual cost increases of up to 70 percent of CPI inflation and additionally benchmarks rates against India, Bangladesh and Sri Lanka. Every Fertilizer Company's Urea Sales Fell in August-Except One.

Industry authorities stated essential medicine rates were raised by a maximum of 4.9 percent in fiscal year 2026, compared with 7 percent CPI inflation, and remained below costs in neighboring countries. They argued that the existing system provides a transparent framework while taking into account the industry's higher production costs.

Meanwhile, the industry pressed the administration to retain the current pricing and hardship mechanisms for longer, saying repeated interventions create uncertainty and could affect medicine availability, quality, investment and exports. Authorities stated the sector's profit margins had risen from regarding 3 percent two years ago to around 10 percent after the 2024 deregulation of non essential medicines.

They additionally cited India's pharmaceutical exports. It they stated were close to $30 billion in 2026, as an example of how consistent pricing policies and greater deregulation can backing industry expansion. They cautioned that tighter margins could reduce businesses' ability to invest in production, improve quality and expand exports.

In practice, the industry remarked deregulation of non essential medicines had additionally rose competition on costs and quality, arguing that competition ultimately benefits patients while allowing pharmaceutical firms to earn enough to reinvest in the sector. Stay Connected with ProPakistani.

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