Drug price deregulation has come to Pakistan. What will this mean?

In early 2022, there was a severe shortage of paracetamol, and of course, the blame game began as to who might be responsible. Some members of the Pakistan Young Pharmacist Association (PYPA) seized headlines, boldly accusing drug manufacturers of intentionally orchestrating a paracetamol shortage. What did they allege was the drug companies’ motive? To coerce consumers into buying a pricier, higher-dose variant of 665 mg, rather than the standard 500 mg. While the accusation may have added intrigue to an otherwise familiar dilemma, it highlighted a deeper issue in Pakistan’s healthcare: the chronic, and at times crippling, scarcity of essential medicines.

For decades, the state has attempted to keep medicine prices low, ostensibly to aid citizens but, arguably, more as a populist pitch for votes. The results of this paternalistic approach are exactly what one might expect: drugs vanishing from shelves, poorer quality substitutes, and profits evaporating for companies brave (or foolish) enough to stay in the game. Many have simply packed up and left Pakistan altogether. The result? Both consumers and producers end up as collateral damage in the policymakers’ convoluted strategy.