ISLAMABAD — The Competition Commission of Pakistan (CCP) has granted six conditional exemptions to companies operating in the pharmaceutical sector for the fiscal year 2024–25, the commission said in a statement released Thursday. These exemptions were issued under Section 5 of the Competition Act, 2010, and apply to specific contractual clauses that would ordinarily violate Section 4 of the Act, which prohibits anti-competitive agreements.
The exemptions primarily pertain to restrictive commercial terms such as territorial exclusivity and non-compete provisions, which are often flagged as limiting competition. However, after conducting a comprehensive evaluation of the agreements—including market structure, regulatory frameworks, and commercial implications—the CCP concluded that the arrangements contribute positively to production efficiency, technological innovation, and broader access to critical medicines.
“These exemptions are expected to enhance healthcare delivery by expanding pharmaceutical availability in underserved areas and improving public health outcomes,” the CCP noted, adding that the arrangements will also allow consumers to benefit from improved pharmaceutical technologies and more consistent product information.
While allowing these clauses, the CCP imposed specific conditions to ensure that the net impact remains pro-competitive. “All approvals are time-bound and closely monitored. Any form of price-fixing or collusion remains strictly outside the scope of the exemptions,” the commission stated.
The development comes a day after the federal government announced the formation of PharmEx Pakistan, a dedicated Pharmaceutical Export Promotion Council under the Trade Development Authority of Pakistan (TDAP), as part of broader efforts to boost pharmaceutical exports.
The CCP’s measured approval reflects an ongoing balancing act between preserving competitive market dynamics and enabling collaborative arrangements that foster innovation and service delivery in regulated sectors like healthcare.
