DRAP’s Drug Price Survey Sparks Tension with Pharmaceutical Manufacturers

Survey Launched Amid Public Outcry The Drug Regulatory Authority of Pakistan (DRAP) has initiated a third-party survey to assess the impact of medicine price deregulation, particularly for drugs not listed on the National Essential Medicines List (NEML). The move follows widespread public concern over rising costs for commonly used medications.

Pharma Industry Pushback During a meeting of the Special Investment Facilitation Council (SIFC), the Pakistan Pharmaceutical Manufacturers Association (PPMA) voiced strong objections to the survey, citing a lack of industry stakeholder involvement. Manufacturers argue that excluding their input could skew results and undermine collaborative policy-making.

Survey Scope and Methodology The study aims to:

  • Collect pricing data from pharmacies, hospitals, and distributors across urban and rural regions
  • Identify market distortions and regional price variations
  • Compare current retail prices of the top 100 non-essential medicines to their Maximum Retail Prices (MRPs) before deregulation

The survey is being conducted with technical guidance from the World Health Organisation (WHO) and is expected to be completed within 15 working days of contract award.

Background: Deregulation and Its Fallout The deregulation policy was introduced in February 2024 under SRO 228 (I)/2024, aiming to address drug shortages and attract investment. However, it quickly led to sharp price increases, especially for medicines treating diabetes, hypertension, and psychiatric disorders, raising concerns about affordability and access.

Market Data Highlights Price-Driven Growth According to IQVIA, Pakistan’s pharmaceutical market reached Rs1.049 trillion in sales by March 2025—a 20.62% increase in rupee terms, while unit sales grew only 3.63%, indicating that price hikes were the main growth driver.

Potential Policy Revisions Ahead The findings of the survey, combined with WHO’s review, could prompt the government to reconsider its deregulation strategy. Options on the table include:

  • Restoring price controls
  • Introducing a tiered pricing system
  • Enhancing access to essential medicines for vulnerable populations

Conclusion: A Crossroads for Drug Pricing Policy As DRAP’s survey unfolds, the tension between regulatory oversight and industry autonomy is coming to a head. The outcome may reshape Pakistan’s pharmaceutical pricing landscape—balancing affordability, investment, and public health priorities.