Pakistan pharma industry warns medicine shortages could return if price deregulation is reversed

By Sadia Khan :

Pakistan’s pharmaceutical industry has warned the government against reversing the deregulation policy for non-essential medicines, saying any rollback could trigger medicine shortages, factory closures and declining foreign investment at a time when the sector is showing signs of recovery and export growth

The warning came from the Pakistan Pharmaceutical Manufacturers Association, which said the pricing reforms introduced in 2024 had helped stabilise the market after years of financial pressure on drug manufacturers.

In a statement, the association argued that the policy had already produced measurable gains, including stronger medicine availability, higher exports and renewed investment in internationally certified manufacturing facilities.

According to industry estimates cited by the PPMA, Pakistan’s pharmaceutical exports rose from nearly $336 million before deregulation to around $450 million in 2025. Manufacturers also expanded investments in production plants designed to meet international regulatory standards required for exports to markets including Europe, the United States, Canada and Australia.

Industry representatives said the reforms gave local companies more flexibility to cope with rising production costs, currency fluctuations and expensive imported raw materials, all of which had placed severe strain on manufacturers in recent years.

They warned that reintroducing strict price controls could undo recent progress and push companies back into financial losses, ultimately affecting the availability of medicines in the domestic market.

The association maintained that deregulation had not only improved medicine supply chains but also encouraged companies to upgrade quality standards and reduce the circulation of counterfeit medicines.

Pakistan’s pharmaceutical sector has long argued that rigid government pricing policies made it difficult for companies to operate sustainably, especially during periods of inflation and currency depreciation. Drug manufacturers say prices often remained frozen for years despite steep increases in production and import costs.

Industry officials claimed that the previous pricing structure discouraged investment and contributed to the gradual exit or downsizing of several multinational pharmaceutical firms from Pakistan over the past decade.

Companies including Pfizer, Novartis, Sanofi, Bayer and Johnson & Johnson were cited by industry representatives as examples of firms that either reduced operations or exited parts of the Pakistani market because of what they described as an unsustainable pricing environment.

Pharmaceutical manufacturers said deregulation had provided the industry with “breathing space” to reinvest in production lines, improve compliance with global manufacturing standards and pursue export opportunities more aggressively.

The industry also warned that uncertainty over pricing policy could damage investor confidence and slow expansion plans at a time when Pakistan is attempting to strengthen export-oriented industries to support economic recovery.

Manufacturers argued that the pharmaceutical sector should be treated in line with other industries where market-driven pricing mechanisms are already in place, including cement, automobiles, textiles and banking.

Economists and healthcare analysts, however, have long debated the balance between commercial sustainability and public access to affordable medicines. Consumer groups have previously expressed concerns that deregulation could increase the financial burden on patients already struggling with rising healthcare costs.

The government has not yet formally announced any reversal of the deregulation policy, but reports of possible policy changes have generated concern across the pharmaceutical sector.

Industry leaders say Pakistan has the potential to emerge as a larger regional pharmaceutical exporter if policy consistency is maintained and companies continue investing in internationally compliant production facilities. They argue that long-term stability in pricing regulations will be critical for attracting investment, expanding manufacturing capacity and improving Pakistan’s competitiveness in global medicine markets.

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