The Special Investment Facilitation Council (SIFC) endorsed the government’s deregulation policy for pharmaceutical sector announced in February 2024, stating that the sector was undergoing a transformative shift with the deregulation of non-essential medicines.
The move allowed “market competition and fair market pricing for drugs not listed on the National Essential Medicines List (NEML),” according to a recent social media post of the SIFC.
“Driven by the SIFC, this initiative ensures a stable medicine supply while fueling industry’s growth and expansion. By streamlining regulations, improving business conditions, and offering seamless facilitation to manufacturers and exporters. SIFC is helping Pakistan position as a hub for pharmaceutical investment and innovation,” the post read.
The council said the deregulation was reshaping the pharmaceutical sector by increased investment in research and development (R&D), loading to new and improved range of medicines.
Global pharmaceutical companies are expanding into Pakistan’s market, and the deregulation has supported compliance with FDA, MHRA, WHO, and PICS approvals, according to the SIFC.
Besides, the initiative also supported the pharma sector exports surge by 52% in the first half of current fiscal year, outpacing other sectors, it added.
The post further said the deregulation strengthened competition, ensuring “better drug availability, and pricing”, and also reduced counterfeit and smuggled medicines through strict regulatory enforcement.
The initiative increased the availability of life-saving and essential medicines, ensured affordability by keeping 40% of the phama market regulated by the government, and aligned Pakistan’s pharmaceutical sector with international benchmarks, according to the SIFC.
“With investor-friendly policies accelerating growth, Pakistan’s pharmaceutical sector is poised for sustained innovation, global competitiveness, and enhanced healthcare accessibility.”
PPMA refutes reports claiming medicine prices increased 15 times in just five years
Meanwhile, while quoting the IQVIA Q3, which is one of the most trusted data analytics firms for pharmaceuticals, Tauqeer Ul Haq, Chairman, Pakistan Pharmaceutical Manufacturers’ Association (PPMA) said “the quarter-3 MAT results reported 21.7% overall growth in terms of value that collectively includes new launches, line extension, and re-availability of hardship products.”
“If we only take the factor of growth in terms of price increase excluding the impact of new launches, line extensions, and re-availability, it is reported as 15.62%, which is reasonable considering the acute devaluation and rising cost of doing business over the past few years.”
PPMA chairman maintained that the association had continuously reiterated responsible and rational price increase to the industry and after deregulation, “only the non-viable product prices are adjusted to ensure availability and it’s mostly done”.
“Now the prices will stabilise as the market forces and competition will restrict the abnormal price increase and this price adjustment exercise is in line with international practices,” he said.
The benefits of deregulation are visible as the availability and access to medicines have improved significantly, according to Tauqeer Ul Haq.
He further said important and life-saving products that had been unavailable earlier were available at pharmacies across the country.
It may be noted that the deregulation led to an increase in the country’s medicine exports. From July to December 2024, the industry reported 52% growth over the previous year. The exports are expected to climb to $1 billion in the ongoing fiscal year 2024-25 (FY25).
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“The deregulation has minimised the presence of counterfeit and smuggled drugs as the demand is being met by the registered products in the market.
“Realistic and viable pricing also played a part in the introduction and launch of new and innovative products in the Pakistani market, leading to the presence of advanced treatment options available to healthcare professionals to treat the patients better,” PPMA chairman said.
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