The government has decided to establish a new independent body to oversee the pricing of life-saving drugs, limiting the powers of the Drug Regulatory Authority of Pakistan (Drap).
This move is part of broader health sector reforms and aimed at addressing long-standing issues related to drug pricing and preventing medicine shortages in the market.
Under the Prime Minister’s directives, the decision to relieve Drap of its price-setting duties follows the caretaker government’s earlier deregulation of non-essential medicine prices.
The new body will assume responsibility for regulating the prices of approximately 500 essential medicines, which Drap currently oversees based on the latest World Health Organisation list.
The Pakistan Pharmaceutical Manufacturers’ Association (PPMA) has expressed optimism that the proposed regulatory body will expedite the resolution of pending drug pricing cases and ensure that future pricing decisions are handled efficiently, preventing medicine shortages.
A senior official of the health ministry said that in many countries, drug pricing is managed separately from drug registration authorities. This separation, if implemented in Pakistan, could help address the recurring issue of drug shortages in the market.
A committee, led by Federal Minister for Law and Justice Azam Nazeer Tarar, is considering two key options: establishing an independent regulatory authority or forming a board of experts from various sectors to determine medicine prices.
The committee is also reviewing global and regional practices in drug pricing regulation to inform their decisions.
Earlier, in February, the caretaker federal cabinet, following a recommendation from the Ministry of National Health Services, approved the deregulation of prices for medicines not listed as essential.
Usman Shaukat, a member of the PPMA, commented that the deregulation of non-essential medicine prices was a positive step by the caretaker government to alleviate the concerns of manufacturers and importers facing rising input costs.
He expressed hope that the new regulatory body would expedite pending cases of pricing and handle future cases in a timely manner to ensure the availability of medicines in the market.
