The Special Investment Facilitation Council (SIFC) has reaffirmed its support for the government’s deregulation policy for non-essential medicines, calling it a major step toward modernising Pakistan’s pharmaceutical industry. Introduced in February 2024, the deregulation allowed market-based pricing for drugs not listed on the National Essential Medicines List (NEML), aiming to encourage investment, innovation, and competitive pricing. The SIFC stated that the initiative is already showing positive results, with pharma exports surging by 52% in the first half of FY25.
The policy has attracted increased investment in research and development (R&D) and improved compliance with international drug regulatory standards, including those of the FDA, WHO, and MHRA. The entry of global pharmaceutical companies into Pakistan’s market is expected to broaden the range of medicines available, making advanced treatment options accessible to healthcare professionals and patients. Additionally, the deregulation has strengthened competition, reduced counterfeit drugs, and improved drug pricing transparency through stricter regulatory enforcement.
Amid concerns about price hikes, Pakistan Pharmaceutical Manufacturers’ Association (PPMA) Chairman Tauqeer Ul Haq rejected claims that medicine prices had increased 15 times in five years. Citing IQVIA Q3 data, he clarified that the actual price increase, after excluding new product launches and extensions, was 15.62%, which he deemed reasonable given currency devaluation and rising production costs. He also emphasised that deregulation allows only non-viable products to adjust in price, ensuring that competition keeps rates stable.
The initiative has also played a role in reducing the availability of counterfeit and smuggled medicines, as increased local production meets demand. Pakistan’s pharmaceutical exports are now projected to cross $1 billion in FY25, with experts from the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) estimating that the sector could generate $5 billion in annual exports with further policy support. With investor-friendly regulations, the pharmaceutical industry is set for sustained growth, benefiting both the economy and public health.
