Parliamentary Panel Voices Concerns Over Pharma Industry Cartel

A parliamentary panel has voiced profound apprehension regarding cartelization within the pharmaceutical sector. The committee noted that while the government’s intention behind deregulating drug prices was to foster competition, the industry has instead formed cartels, leading to significant price escalations.

The Senate Standing Committee on National Health Services and Regulations convened under the leadership of Senator Aamir Waliuddin Chishti. The agenda included deliberations on crucial legislative and regulatory issues pertaining to healthcare, medical education, and public health.

The Federal Minister for National Health Services and Regulations informed the committee that an evaluation of the deregulation policy, conducted in conjunction with relevant stakeholders, is scheduled for completion by September 18, 2025. The minister acknowledged that the anticipated benefits of deregulation, such as enhanced competition and consumer relief, have not materialized and have instead fostered practices detrimental to competition. He affirmed the government’s commitment to re-evaluating the policy if it is found to negatively impact consumers.

The committee conveyed strong disapproval of the cartelization observed in the pharmaceutical domain. It asserted that unjustifiable price surges resulting from excessive profiteering would not be condoned at the cost of public well-being.

Senator Chishti pointed out that the government’s decision to embrace deregulation was made in good faith, with the intention of ensuring affordable healthcare for the populace. However, he cautioned that if cartelization persists and the objectives of deregulation remain unmet, a reconsideration of the deregulation policy would be necessary.

The chairman concluded the session by underscoring the paramount importance of protecting public health. He instructed that the issue of drug pricing be re-examined by the committee following the submission of the assessment report in September.

MDCAT and Other Matters

The committee also addressed matters concerning the Medical and Dental Colleges Admission Test (MDCAT). The committee learned that the financial ramifications of unresolved cases dating back to 2020 are under review, and the MDCAT is scheduled for October 5, with an anticipated participation of over 150,000 candidates.

The chairman emphasized the necessity of implementing robust monitoring mechanisms, especially in Sindh, to prevent paper leaks and other irregularities. He stressed that the future prospects of students must not be jeopardized. The Minister for Health Services and Regulations assured that a secure question bank has been established, provinces are being closely monitored, and supplementary safeguards have been implemented.

The committee reviewed legislative matters, including the Pakistan Medical and Dental Council (Amendment) Bill, 2025, and the Mental Health (Amendment) Bill, 2025, both presented by Senator Mohammad Humayun Mohmand. Discussions revolved around the autonomy of the PMDC and the potential impact of parliamentary representation on its independence. The minister emphasized the importance of regulatory bodies remaining insulated from political influence and functioning transparently. The bill was postponed for further examination. Regarding the Mental Health (Amendment) Bill, 2025, the committee recognized the pressing need to establish a regulatory framework for psychologists. The chairman endorsed the proposal, and the bill was approved.

The committee also deliberated on the Prohibition of Smoking and Protection of Non-Smokers Health (Amendment) Bill, 2025. Senator Sarmad Ali, the bill’s proponent, urged the immediate regulation of vaping, particularly among young individuals, and proposed the prohibition of sales near educational institutions. The chairman instructed the ministry to reassess the bill in consultation with the mover and present revised proposals in light of existing federal tobacco laws.

Regarding private medical colleges, concerns were raised about institutions imposing fees exceeding the prescribed limit of Rs 1.8 million and failing to provide refunds. The chairman proposed obtaining audit reports of colleges to ensure transparency, while the minister pledged to initiate inspections in Islamabad and provide feedback to the committee.

Among those in attendance were senators Mohammad Humayun Mohmand, Fawzia Arshad, Syed Masroor Ahsan, Irfanul Haque Siddiqui, Sarmad Ali, the Minister for National Health Services, Regulations and Coordination, the secretary of the Ministry of National Health Services, Regulations and Coordination, the consultant to the Senate Standing Committee, and officials from relevant departments.