Representatives of the Pakistan Young Pharmacists Association (PYPA) and other stakeholders on Monday urged the government to restore stronger regulation of medicine prices, claiming that the deregulation of drug pricing has contributed to rising healthcare costs and the departure of several multinational pharmaceutical companies from Pakistan.
Addressing a press conference in Islamabad, PYPA President Dr Hina Shaukat said Pakistan’s pharmaceutical industry has long depended on imported raw materials, with a significant share sourced from India. She claimed that multinational companies had gradually shifted manufacturing operations abroad, citing the closure of Becton, Dickinson and Company’s manufacturing unit in Gujranwala and Glaxo’s earlier relocation of raw material production from Lahore. She also expressed concern over the lack of testing facilities for medical devices at the Drug Regulatory Authority of Pakistan (DRAP), warning that substandard medical equipment could pose serious public health risks.
PYPA Chairman Mohammad Usman Hundal highlighted what he described as a significant gap between medicine prices paid by the Punjab government and retail prices in the open market. Citing official procurement data, he said several generic medicines were purchased by the government at substantially lower prices than branded versions sold commercially. He argued that the removal of government control over medicine prices in February 2024 had contributed to rising costs and called for a review of the policy. Hundal also claimed that companies including Lundbeck, Novartis and Pfizer had exited Pakistan in recent years.
Speaking at the event, legal experts Liaquat John, Rahila Hafeez Rana and Sara Mumtaz stressed the importance of ensuring affordable access to medicines, warning that rising prices could increase the financial burden on both patients and public healthcare institutions.
Responding to the claims, DRAP Chief Executive Officer Dr Obaidullah Malik said it was incorrect to attribute the exit of multinational companies solely to government policies. He explained that some firms had entered joint ventures, while others had shifted their regional business strategies to focus on different international markets. Regarding procurement prices, he said pharmaceutical companies often supply medicines to government hospitals at breakeven or reduced rates to expand their market presence and encourage wider prescription of their products. – ERMD