Medicine Prices
ISLAMABAD: The Drug Regulatory Authority of Pakistan (Drap) will soon be relieved of its role in setting medicine prices, as the government plans to establish a new body to oversee this function, on Sunday.
This change is part of a broader reform strategy aimed at improving the health sector and streamlining the federal health ministry’s operations.
Prime Minister Shehbaz Sharif has directed the formation of a separate pricing body, with Law and Justice Minister Azam Nazeer Tarar leading a committee that is currently developing a detailed proposal for this new organization.
The decision aligns with the government’s ongoing efforts to reform health sector management and enhance the efficiency of drug regulation.
An official from the Ministry of National Health Services, Regulations, and Coordination (NHS, R&C) explained that the new policy follows the caretaker government’s earlier deregulation of non-essential medicine prices.
This deregulation was intended to make non-essential medicines more available by addressing issues caused by previous regulatory constraints.
However, the current administration has decided to extend this reform to include essential medicines, relieving Drap of its pricing responsibilities in this area as well.
Drap has been responsible for regulating the prices of approximately 500 essential medicines, guided by the World Health Organisation’s latest list.
The transition of this responsibility to the new federal-level body aims to address several pressing issues, including delays in price adjustments for critical medicines like the Anti Rabies Vaccine (ARV). Such delays have led to shortages, with the price adjustment for ARV produced by NIH Islamabad pending for months.
The official noted that two initial proposals were considered: creating an independent regulatory body specifically for price-setting, or establishing an independent board composed of experts from various sectors to determine medicine prices.
Both proposals were evaluated to find the most effective solution for managing drug prices and ensuring timely availability of essential medicines.
The previous caretaker government’s deregulation of non-essential medicine prices was intended to resolve availability issues by encouraging manufacturers to reintroduce discontinued products.
This policy change has led to a noticeable improvement in the availability of non-essential drugs for common ailments. By promoting competition among pharmaceutical companies, deregulation is expected to potentially lower costs for consumers and attract new market entrants.
The reduced regulatory burden on Drap is anticipated to allow the government to concentrate on other important regulatory functions, while also fostering an environment conducive to both domestic and international investment in the pharmaceutical sector.
As a result, some multinational pharmaceutical companies that had exited the Pakistani market are now considering re-entering, which could stimulate growth and innovation within the industry.
In summary, the establishment of a new body to handle medicine pricing is a significant step in the government’s reform agenda, aimed at addressing current challenges in drug availability and pricing while encouraging investment and competition in the pharmaceutical sector.
I am a dynamic professional, specializing in Peace and Conflict Studies, Conflict Management and Resolution, and International Relations. My expertise is particularly focused on South Asian Conflicts and the intricacies of the Indian Ocean and Asia Pacific Politics. With my skills as a Content Writer, I serve as a bridge between academia and the public, translating complex global issues into accessible narratives. My passion for fostering understanding and cooperation on the national and international stage drives me to make meaningful contributions to peace and global discourse.
