Government Reaffirms Medicine Price Deregulation Policy

Medicine Deregulation Policy and Its Impact on Patients and Industry

The government has confirmed that it has no plans to roll back the medicine price deregulation policy introduced during the caretaker administration of Anwaar-ul-Haq Kakar in 2024. Officials from the Ministry of National Health Services and the Drug Regulatory Authority of Pakistan (DRAP) dismissed speculation that the framework was under review, clarifying that the policy remains firmly in place.

Under the current system, essential and life-saving medicines continue to be regulated, while non-essential drugs are subject to market-based pricing. Authorities argue that this balance ensures patient protection while allowing manufacturers the flexibility to sustain production.

Officials explained that the deregulation policy was designed to address supply gaps caused by rigid price controls. In the past, manufacturers struggled to produce low-margin medicines due to rising input costs, inflation, and currency depreciation. This led to shortages and discontinuation of several commonly used drugs. Deregulation, they say, has helped stabilize the market and improve availability.

The Pakistan Pharmaceutical Manufacturers Association (PPMA) has also supported the policy, noting that outdated price caps had made production commercially unviable. Since deregulation, many medicines that had disappeared from shelves have returned, reducing complaints of stock-outs in hospitals and pharmacies.

Despite these improvements, concerns remain about affordability. Lawmakers and civil society groups warn that market-based pricing could burden low-income patients. Officials acknowledged these challenges and emphasized that regulatory oversight is being strengthened to monitor pricing trends, detect unjustified increases, and improve transparency in the pharmaceutical supply chain.

Periodic reviews of the policy are underway to assess its impact on both availability and affordability. Authorities stress that while deregulation has improved supply stability, targeted interventions are needed to ensure that vulnerable patients are not left behind.

The government’s stance reflects a commitment to balancing industry sustainability with patient welfare. As Pakistan’s healthcare system evolves, the challenge lies in ensuring that deregulation continues to benefit both manufacturers and the millions of people who rely on affordable medicines.