Govt orders national survey as drug prices soar after deregulation

ISLAMABAD: With drug prices spiraling and affordability becoming a national concern, the Drug Regulatory Authority of Pakistan (DRAP) has announced a nationwide survey to independently examine how the deregulation of non-essential medicines has affected pricing and patient access across the country.

Officials confirmed on Saturday that the move was initiated on the directives of Prime Minister Shehbaz Sharif, who recently called for a neutral, evidence-based review of the controversial pricing policy. Under the newly issued Expression of Interest (EOI), DRAP has invited individual consultants and research firms to undertake a comprehensive market analysis comparing the current retail prices of the 100 most-sold non-essential medicines—those not listed on the National Essential Medicines List (NEML)—with their Maximum Retail Prices (MRPs) before deregulation. The nationwide survey will collect pricing data from licensed pharmacies, hospitals, distributors, and clinics in both urban and rural regions across five to six major cities. Officials say the objective is to analyze regional variations, detect market distortions, and determine how deregulation has shaped affordability and access for consumers.

The findings are expected to be finalized within 15 working days of awarding the contract and will be jointly reviewed by DRAP and the World Health Organization (WHO). WHO’s technical assistance has also been requested to assess broader economic and health consequences of the deregulation policy and to recommend appropriate policy reforms.

The deregulation policy, introduced through S.R.O. 228(I)/2024 by the caretaker government in February 2024, was framed as a strategy to combat frequent drug shortages and attract more pharmaceutical investment. However, it has faced sharp criticism from healthcare professionals, patients, and even cabinet members after reports of widespread and unregulated price hikes surfaced. “Prices of many essential but non-listed medicines have doubled or even tripled in some cases,” a senior health official told The News. “The prime minister has sought a clear picture—whether this policy is only serving corporate profits or truly addressing medicine availability.”

Federal Health Minister Dr. Mustafa Kamal and Minister of State for Health Malik Mukhtar Ahmed Bharath have also sought an explanation from DRAP. Last month, Dr. Bharath publicly questioned the justification behind steep price jumps. “If someone was paying Rs800 and is now paying Rs2,500 for the same medicine, we must explain this increase transparently,” he said.

Supporting the public outcry, market research by IQVIA showed that Pakistan’s pharmaceutical sales crossed Rs1.049 trillion in the 12-month period ending March 2025—reflecting a 20.62pc increase in rupee terms. But the unit sale growth was just 3.63pc, indicating that the market expansion was driven almost entirely by price hikes rather than increased demand. Nearly 69pc of this growth, IQVIA noted, was due to rising prices. Multinational pharmaceutical companies, in particular, saw declining unit sales but soaring revenues—suggesting that higher profit margins, not improved access, were the primary result of deregulation. Even basic medicines like paracetamol have shown erratic pricing, further fueling concerns. Many hospitals and pharmacies report confusion over fair pricing, with patients often unable to afford life-saving medications.

A DRAP official emphasized the urgency of regaining control over medicine pricing. “This market cannot be allowed to operate unchecked, especially when patient health is at stake. The survey is essential to bring back fairness and evidence-based regulation.”

According to the Terms of Reference (TORs), the selected consultant or firm will develop a scientifically sound sampling methodology to ensure representation of different socioeconomic regions. They will gather data from across the pharmaceutical supply chain—from distributors to end-user pharmacies—and all findings will be validated and presented with supporting evidence and visualizations. While pharmaceutical companies argue that deregulation is necessary to adjust to economic realities like inflation and currency depreciation, critics believe it has created a profit-first market that sacrifices patient access and public health.

Policy experts say the results of the DRAP survey, coupled with WHO’s independent review, may force the government to consider rolling back deregulation or introducing tiered price controls to balance innovation with accessibility. The pharmaceutical pricing survey, now underway, is shaping up to be a litmus test for the government’s commitment to affordable healthcare—and may ultimately redefine how life-saving medicines are priced and regulated in Pakistan.