ISLAMABAD: The Drug Regulatory Authority of Pakistan (Drap) will no longer fix drug prices as the government has decided to set up a new body to delegate the responsibility, The News reported on Sunday.
The decision was taken in line with the government’s reforms and efforts in the health sector and also in line with the rationalization of the Federal Ministry of Health.
Prime Minister Shehbaz Sharif has issued directives to set up a separate pricing authority with a committee headed by Law and Justice Minister Azam Nazeer Tarar currently working on a detailed proposal.
An official from the Department of National Health Services, Regulations and Co-ordination (NHS, R&C) told the publication that following the deregulation of the prices of non-essential medicines by the caretaker government, the current administration has decided to strip the body of its role in setting prices. even for basic medicines.
“This task will be handled by a new body at the federal level,” the official explained.
Drap currently regulates the prices of approximately 500 essential medicines based on the latest World Health Organization list. A new authority will take over this responsibility.
“Initially, two proposals were considered: one to create an independent regulatory body to set prices, and the other to create an independent board of experts from various industries to set drug prices,” the official added.
Several essential medicines, including the anti-rabies vaccine (ARV), are currently in short supply due to delays in adjusting their prices to meet the needs of manufacturers and importers. For example, a price adjustment for an ARV manufactured at the NIH in Islamabad has been pending for months, leading to a nationwide shortage.
“Similarly, pricing decisions in various critical cases have been pending for over a year, with the federal cabinet neither accepting nor rejecting Drap’s pricing recommendations. This indecision is causing severe shortages of some essential medicines,” the official said.
The deregulation of non-essential drug prices by the previous caretaker government was intended to ensure the availability of drugs that had previously been discontinued by manufacturers. This move has led to improved availability of non-essential drugs for common ailments.
“Drug price deregulation promotes competition among pharmaceutical companies, potentially lowering costs for consumers and encouraging new market entrants. It also reduces the administrative burden on Drap, allowing the government to focus on other regulatory functions,” the official noted.
After deregulation, some multinational pharmaceutical companies that left Pakistan are now considering re-entering the market, which is a positive development for both the pharmaceutical industry and consumers.
“Less price regulation will attract domestic and international investment, encourage innovation and growth in the sector,” the official concluded.
