Medicine price deregulation, two years on: availability up, prices debated, policy under review
Prices of non-essential medicines were freed in February 2024. Officials now report over 99% availability, while the pricing framework faces a fresh review.
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Few decisions have shaped Pakistan’s pharmaceutical industry as much as the February 2024 deregulation of prices for non-essential medicines. Two and a half years later, the arguments for and against are clearer — and the policy is being reviewed again.
Availability
Officials at the health ministry and DRAP said in March 2026 that over 99% of registered medicines were available, crediting deregulation. A DRAP official explained that when controlled prices fell below production cost, companies stopped making medicines: “When manufacturers stop producing medicines because they are selling below cost, shortages become inevitable.” DRAP added that shortages had encouraged hoarding and counterfeits. Deregulation covers only non-essential medicines; hundreds of essential and life-saving drugs remain under price control.
Prices
The size of the increase has been disputed. In November 2025, the Pakistan Pharmaceutical Manufacturers Association (PPMA) said prices had risen by an average of 15% since the policy, not the 32% cited by authorities, and that more than 50 life-saving and critical drugs had returned to pharmacies.
A fresh review
In September 2026, ProPakistani reported that Senator Ahad Cheema directed the health ministry and DRAP to revise the drug pricing framework, including the Hardship Policy and the DRAP Policy Board. Industry officials urged stability, noting that:
| Point raised by industry | Figure |
|---|---|
| Share of medicines under price control | About 40% (roughly 500 molecules) |
| Maximum essential-medicine increase, FY26 | 4.9%, against 7% CPI inflation |
| Sector profit margin | About 3% before deregulation, about 10% after |
What to watch
Officials acknowledge affordability concerns for low-income households and say they are looking at price monitoring and social protection. For suppliers, the key question is whether manufacturers keep the margins they are now investing in new products, quality and exports — see FY26 profits.
