KARACHI: Prices of more than a hundred commonly used medicines have jumped by an average of 32 percent since February last year, after the caretaker government lifted price controls under its deregulation policy, prompting concern among officials and demands for accountability from the pharmaceutical industry.
According to Pakistan’s leading daily Dawn, the surge caught the authorities off guard, as deregulation was expected to encourage competition and lower costs. Instead, it triggered widespread public anger and forced the government to review the policy after a national survey — ordered by the prime minister — revealed sharp increases in medicine prices across hospitals and pharmacies.
Officials Shocked by the Scale of Increase
Chairman of the Senate Standing Committee on National Health Services, Senator Amir Waliuddin Chishti, said the federal health ministry and the Drug Regulatory Authority of Pakistan (DRAP) had informed the committee that an overall 32 percent rise had been recorded since the caretaker administration deregulated non-essential medicines in February 2024.
He added that in some cases, prices had soared by up to 100 percent, while a 50 percent increase was noted in several others. The senator said deregulation was meant to boost investment and exports, “not to burden consumers already struggling with inflation.”
Senator Chishti said the committee had decided to seek explanations from pharmaceutical companies in cases where prices surged by 50 percent or more. “We will summon the industry next month and, if we find signs of cartelisation, the Competition Commission of Pakistan will be asked to investigate,” he said.
He emphasized that while the committee supports a thriving pharmaceutical industry, it cannot allow patients to suffer. Recommendations from the prime minister’s office on the pricing of non-essential drugs are expected soon, he added.
Officials Cite Disparity with Previous Pricing Formula
Before deregulation, drugmakers were permitted to raise prices annually by up to 7 percent, aligned with the Consumer Price Index. Under that formula, prices would have risen roughly 14 percent over two years — far below the 32 percent jump now observed, officials noted.
The deregulation policy, implemented during the caretaker setup, removed cabinet oversight of non-essential drug prices, allowing companies greater freedom to set rates based on market forces.
The Pakistan Pharmaceutical Manufacturers Association (PPMA) rejected claims of excessive price hikes, saying the actual increase averaged 15 percent. Its representative, Tauqeerul Haq, argued that deregulation was a “timely lifeline” that saved the sector from collapse amid rising input costs, currency depreciation, and energy inflation.
“The policy helped restart production of previously unavailable medicines and curbed counterfeit drugs,” Haq said, adding that under the old system, political pressure had blocked price adjustments for years.
Abdul Samad Budhani, chairman of the Pakistan Chemists and Druggists Association, said deregulation ended chronic shortages by ensuring an abundant supply at pharmacies. However, he noted that essential medicines — classified as “hardship cases” — still faced bureaucratic hurdles and delays in pricing approvals.
“The real relief was needed for essential drugs, not just non-essential ones,” Budhani said, calling for a more balanced approach to protect patients while maintaining industry stability.
