Senate panel alarmed as medicine prices jump 32% after price controls lifted

The Ministry of National Health Services and the Drug Regulatory Authority of Pakistan (DRAP) informed the Senate Standing Committee that prices of several essential medicines have doubled, while others have increased by around 50% since the government deregulated drug prices in February 2024. 

According to a news report, officials said prices of more than 100 commonly used medicines have risen by an average of 32% after the caretaker government lifted price controls — a move aimed at encouraging competition but which instead triggered steep hikes and led to a Senate inquiry.

The findings came from a nationwide survey ordered by the prime minister following complaints from hospitals and citizens.

Committee Chairman Senator Amir Waliuddin Chishti said the government would seek justification from pharmaceutical companies for all medicines whose prices had increased by 50% or more. “If we detect any element of cartelisation by the pharmaceutical sector, we will ask the Competition Commission of Pakistan to look into the matter,” he said.

Before deregulation, firms were allowed annual price increases of up to 7% in line with the Consumer Price Index. Officials noted that under this formula, drug prices would have risen by roughly 14% over two years — far below the 32% observed since price controls were lifted.

The Pakistan Pharmaceutical Manufacturers Association (PPMA), however, disputed the official figures, saying the average increase was closer to 12–15%. The group argued that deregulation saved the industry from collapse amid rising costs, currency depreciation, and inflation.

“The policy helped restart production of previously unavailable medicines, improved their availability, and curbed the circulation of counterfeit drugs during shortages,” said PPMA representative Tauqeerul Haq.

Retailers also defended deregulation, saying it had ended chronic shortages. Abdul Samad Budhani, chairman of the Pakistan Chemists and Druggists Association, said price flexibility ensured the steady availability of non-essential medicines. However, he noted that bureaucratic delays continue to affect the pricing of essential drugs, leading to periodic shortages.

The Senate committee said it would issue recommendations after receiving the prime minister’s input on non-essential drug pricing.