The government of Pakistan has announced a significant shift in the regulation of medicine prices, with plans to revoke the Drug Regulatory Authority of Pakistan (DRAP)’s authority to set the prices of essential medicines.
This move is part of broader health sector reforms aimed at streamlining operations within the federal health ministry.
A New Regulatory Body on the Horizon
According to officials from the Ministry of National Health Services, Regulations, and Coordination (NHS, R&C), a new federal body will be established to assume responsibility for setting medicine prices.
This development follows Prime Minister Shehbaz Sharif’s directives, which also included the recent deregulation of non-essential medicine prices by the caretaker government.
The new regulatory body will oversee the pricing of approximately 500 essential medicines, a task currently managed by DRAP based on the World Health Organisation’s latest list.
The transition is being meticulously planned, with a committee led by Federal Minister for Law and Justice Azam Nazeer Tarar developing a detailed proposal for the new body.
Two Approaches Under Consideration
Officials are considering two key options for the new pricing mechanism: establishing an independent regulatory authority or forming a board of experts drawn from various sectors to determine medicine prices.
The decision-making process is in advanced stages, with the final structure expected to be announced soon.
Addressing Ongoing Delays and Shortages
One of the driving factors behind this reform is the ongoing delay in price adjustments for several essential medicines, including the Anti Rabies Vaccine (ARV).
These delays have led to nationwide shortages, with the pricing for ARV produced by the National Institute of Health (NIH) in Islamabad pending for months.
In addition, several hardship cases related to medicine pricing have been stalled for over a year, awaiting action from the federal cabinet on DRAP’s recommendations.
The government hopes that the new regulatory body will expedite these processes, ensuring timely price adjustments and preventing future shortages.
Impact on the Pharmaceutical Industry
The deregulation of non-essential medicine prices by the previous caretaker government has already led to improved availability of these medicines, fostering competition and potentially reducing costs for consumers.
This move has also sparked interest from multinational pharmaceutical companies considering re-entering the Pakistani market.
Officials believe that reducing regulatory constraints on medicine pricing will encourage both domestic and international investment, driving innovation and growth in the pharmaceutical sector.
The new regulatory framework is expected to create a more dynamic and competitive environment, benefiting consumers and the industry alike.
As the government finalizes its plans to shift medicine pricing responsibilities from DRAP to a new federal body, the move marks a significant step in Pakistan’s ongoing health sector reforms.
To improve efficiency, address delays, and fostering competition, this reform is poised to reshape the landscape of medicine pricing in the country.
