ISLAMABAD: The government has decided in principle to limit the powers of the Drug Regulatory Authority of Pakistan (Drap) and form a new, independent body specifically tasked with overseeing the pricing of life-saving drugs.

The Pakistan Pharmaceutical Manu­facturers’ Association (PPMA) has expressed optimism that the proposed regulatory body will expedite the resolution of pending drug pricing cases and ensure that future pricing decisions are handled efficiently, preventing medicine shortages.

A senior official of the health ministry said that in many countries, drug pricing is managed separately from drug registration authorities. This separation, if implemented in Pakistan, could help address the recurring issue of drug shortages in the market.

“Recently, Prime Minister Shehbaz Sharif issued a directive to separate the pricing department from Drap and make it an independent body,” the official said, adding that a committee led by Law Minister Azam Nazeer Tarar is actively considering this change.

Looks to curtail Drap powers, form new body to oversee pricing of life-saving drugs

“We hope that it may address the issues of Pakistan and will make the medicines available in the market,” he said.

According to a statement, Law Minister Tarar emphasised that regulation and pricing are distinct functions and suggested that provincial representation should be included in the new pricing body. The committee is also reviewing global and regional practices in drug pricing regulation to inform their decisions.

Earlier, in February, the caretaker federal cabinet, following a recommendation from the Ministry of National Health Services, approved the deregulation of prices for medicines not listed as essential.

Usman Shaukat, a member of the PPMA, told Dawn the deregulation of prices of pharmaceuticals was a positive step by the caretaker government to alleviate the concerns of manufacturers and importers of medicines to combat rising input costs and to ensure the availability of medicines in the country.

“The essential medicines that are still being controlled in terms of pricing also need to be adjusted periodically, and the swift resolution of hardship cases for these products is the need of the hour,” he said. “We hope the new regulatory body would expedite the pending cases of pricing and deal with future pricing cases in a timely manner to ensure medicine shortages are not experienced.”

Mr Shaukat, a former member of the Central Executive Committee (CEC) of PPMA, said the formation of a new regulatory body could facilitate these adjustments and encourage multinational companies, which had previously exited the Pakistani market, to reinstate their operations.

Published in Dawn, August 12th, 2024