The government has ordered a review of Pakistan’s drug pricing formula, saying medicine prices must be fair and 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 pricing cases. Officials told the meeting that case-by-case evaluations were nearing completion.
Cheema called for a pricing system that puts patients first without creating unnecessary obstacles for pharmaceutical companies and importers. The meeting was attended by Health Secretary Momin Agha, DRAP Chief Executive Officer Dr. Obaidullah Malik and other senior officials.
Officials also said sufficient quantities of the trivalent influenza vaccine recommended by the World Health Organization were available. DRAP had withdrawn the vaccine’s hardship case because its prices were controlled in the international market.
DRAP Considers International Price Benchmarks
DRAP is reviewing the existing pricing formula and provisions that may prevent fair and accurate price assessments. Cheema suggested subscribing to specialised international drug-pricing databases to help officials make independent assessments using reliable benchmarks.
He said international comparisons could inform decisions but should be supported by independent checks and balances.
The Pakistan Pharmaceutical Manufacturers Association (PPMA) urged the government to consult the industry during the review. Vice Chairman Usman Shaukat said manufacturers supported the goal of keeping medicines affordable and accessible, and argued that a fair and predictable system would benefit both patients and businesses.
Shaukat said affordability was closely linked to availability. He warned that the cost of active ingredients, packaging, energy, freight and regulatory compliance had risen, with many expenses dependent on imports and the exchange rate.
If prices remain frozen for extended periods while costs rise, manufacturers may find some products unviable, he said. That could lead to production halts and shortages, leaving patients reliant on more expensive imports, smuggled products or spurious medicines.
The PPMA said international benchmarks and independent databases could help, provided comparisons account for Pakistan’s operating costs, financing expenses, exchange-rate exposure and comparatively low medicine prices.
Shaukat proposed that the revised formula include clear, time-bound rules and periodic adjustments linked to the Consumer Price Index and production costs. He said this could reduce delays and prevent hardship cases from building up.
