Govt orders review of existing drug pricing formula to ensure medicines are priced fairly
ISLAMABAD: The government on Monday warned that drug prices must not be increased without valid justification and ordered a review of the existing pricing formula to ensure medicines are priced fairly without creating unnecessary hurdles for patients, importers or the pharmaceutical industry. Economic Affairs Minister Ahad Cheema, who chaired a meeting of the Drug Regulatory Authority of Pakistan…
The government has ordered a review of the current drug pricing formula to ensure medicines are priced fairly in Pakistan. Economic Affairs Minister Ahad Cheema emphasized that drug prices must not be increased without a valid reason and directed the Drug Regulatory Authority of Pakistan (Drap) to expedite processing of pending cases. Drap officials assured that sufficient quantities of the recommended trivalent influenza vaccine were available in the market, as the prices were controlled internationally.
The meeting also heard that Drap was examining the pricing formula and identifying provisions that could complicate the determination of fair and accurate drug prices. Cheema proposed that Drap consider subscribing to international databases on drug prices for more reliable benchmarking of pricing decisions. He stressed that public facilitation should remain the government's top priority and any price increases without justification would be unacceptable.
The Pakistan Pharmaceutical Manufacturers Association (PPMA) urged the government to involve industry in the formula review to create a workable and sustainable solution. PPMA Vice Chairman Usman Shaukat highlighted the industry's commitment to affordable and accessible medicines for every Pakistani. Manufacturers acknowledged the impact of rising costs of active ingredients, packaging, energy, freight, and compliance on pricing stability.
Shaukat cautioned that a lack of justified price adjustments could result in medicines disappearing from shelves, forcing patients to seek costlier alternatives or resorting to smuggled or substandard products.
The industry supported the use of international benchmarks and independent databases, provided that the cost of doing business within Pakistan, high financing costs, exchange-rate exposure, and existing low Pakistani medicine prices were taken into account. The PPMA suggested a time-bound, rules-based mechanism for periodic adjustments linked to the Consumer Price Index (CPI) and costs, ensuring that hardship cases were addressed promptly and decisions were not delayed for years.
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