• Minister warns against unjustified price hikes; orders Drap to fast-track pending cases
• Pharmaceuticals seek inclusion in review process; PPMA says frozen prices could halt local production
ISLAMABAD: The government has warned against unjustified increases in medicine costs and ordered a comprehensive review of the national drug-pricing formula, drawing an urgent appeal from pharmaceutical manufacturers to be included in the reform process.
Federal Minister for Economic Affairs Ahad Cheema issued the directives while chairing a meeting of the Drug Regulatory Authority of Pakistan (Drap), stressing that public welfare must remain the government’s priority.
Mr Cheema directed officials to expedite decisions on pending drug pricing applications after being informed that their case-by-case evaluation was nearly complete. He acknowledged the efforts of Climate Change Minister Musadik Malik and Drap officials in reviewing the applications.
Officials briefed the meeting on an ongoing review of the pricing formula, including provisions that could impede fair and accurate price determination.
Mr Cheema suggested using specialised international drug pricing databases to provide independent benchmarks, strengthen transparency in pricing decisions and to modernise the evaluation process. He explained international comparisons could guide pricing decisions but must be supported by independent checks and balances.
The minister emphasised that the revised mechanism should protect patients from unreasonable price increases without creating unnecessary obstacles for importers or pharmaceutical manufacturers.
The meeting was also informed that sufficient quantities of the WHO-recommended trivalent influenza vaccine were available in Pakistan. Drap had withdrawn a hardship pricing case involving the vaccine because its prices were regulated internationally.
Health Secretary Momin Agha, Drap Chief Executive Officer Obaidullah Malik and senior officials attended the meeting.
Meanwhile, leaders in the domestic pharmaceutical sector warn that regulatory reform cannot succeed without direct input from drugmakers.
Speaking to Dawn, Usman Shaukat, vice chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA), urged Drap to engage the industry during the formula review to ensure a workable and sustainable outcome.
“No responsible manufacturer seeks an unjustified price increase, and we welcome Senator Ahad Cheema’s direction to expedite pending pricing cases and to review the pricing formula,” Mr Shaukat said. “A fair, transparent and predictable mechanism serves patients and industry alike.”
Mr Shaukat stressed that keeping drugs cheap means little if manufacturers cannot afford to produce them.
“However, affordability and availability go hand in hand,” Mr Shaukat said.
He noted that when the costs of imported, dollar-linked essentials—such as active ingredients, packaging, energy, freight, and compliance — surge while retail prices remain frozen for years, manufacturing becomes financially unviable.
Companies are then forced to halt production, triggering market shortages that push desperate patients toward expensive imported alternatives, smuggled supplies, or counterfeit drugs.
Mr Shaukat said manufacturers support utilising international benchmarks and independent databases, provided those comparisons account for Pakistan’s unique economic realities.
Any evaluation must factor in the domestic cost of doing business, high financing rates, and severe exchange-rate exposure, he said, adding that Pakistani medicine prices are already among the lowest in the region.
Benchmarks should act as a tool for fairness rather than an artificial ceiling that ignores rising production costs, he said.
“PPMA proposes that the revised formula include a clear, time-bound and rules-based mechanism, including periodic CPI and cost-linked adjustments, so that hardship cases do not pile up and decisions are not delayed for years,” Mr Shaukat said.
Published in Dawn, October 27th, 2026
