Despite rising prices, govt sticking with drug deregulation

KARACHI: The government has decided to continue its policy of deregulating medicine prices despite concerns over rising costs, saying the move had ensured a steady supply of medicines and ended frequent shortages, convincing authorities to keep the current system unchanged.

Irfan Nasir, who uses blood pressure medication, said for more than two years his monthly medicine expenses had been steadily increasing. “I regularly take the anti-hypertensive drug Telmis-artan. Almost every third or fourth week, when I go to purchase my medicine, I have to pay a higher price than before due to repeated increases,” he said.

Officials and industry sources said the decision followed a recent review of medicine prices and retail-level supply by the federal health ministry and the Drug Regulatory Authority of Pakistan.

The review concluded that the policy, introduced in late 2023, would continue to govern pricing of non-essential medicines, while essential and life-saving drugs would remain under government price controls.

“The policy remains in place,” a senior official said. “The government is monitoring its impact on availability and prices,” he added. He continued that recent assessments indicated the market had stabilised after prolonged shortages of several commonly used medicines.

“Under the previous system of tight price controls, manufacturers struggled to sustain production of low-margin medicines due to rising input costs, currency depreciation and inflation. In some cases, production was reduced or discontinued, contributing to supply gaps. Deregulation was intended to address these distortions,” the official said.

Last year, the government admitted that prices of more than a 100 commonly used medicines had increased by an average of 32 per cent since February 2024, after the caretaker set-up lifted price controls under the deregulation policy, prompting concern among officials and calls for the pharmaceutical industry to explain the steep hikes.

‘Affordability concerns’

Health officials said reports from Sindh drug regulators and hospital pharmacies suggested fewer complaints about stock-outs of routine medicines since the policy shift. However, officials acknowledged concerns about affordability that need to be addressed through regulatory oversight and targeted interventions.

Supporting the government’s stance, representatives of pharmaceutical retailers said the policy had stabilised the market and restored suppliers’ confidence.

Abdul Samad Budhani, chairman of Pakistan Chemists and Druggists Association, said deregulation ensured availability of medicines, which was key to move away from centralised price controls that had hindered the sector’s ability to respond to rising production costs. But he said, “The real need for relief was in essential drugs, but their prices were not approved.”

Patients, especially those with chronic conditions, face rising monthly expenses for essential medicines, creating financial pressure on those who depend on long-term treatment.

Shakeel Baig of the Consumer Rights Council of Pakistan said his organisation was also deeply concerned about the trend. “There is a need for a mechanism that safeguards the interests of both companies and consumers while allowing the government to remain impartial,” he added.

Published in Dawn, March 2nd, 2026