Pakistan’s pharma market passes Rs1.25 trillion in FY26 — but volumes barely grow
Retail medicine sales rose 14.88% to Rs1.251 trillion in the year to June 2026, while units grew less than 1%. National companies hold nearly 80% of the market.
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Pakistan’s retail pharmaceutical market reached Rs1.251 trillion (about $4.45 billion) in the 12 months to June 2026, up 14.88% from Rs1.089 trillion a year earlier, according to figures compiled by the industry and DRAP and reported by ProPakistani on 1 October 2026.
Value up, volume flat
Unit sales tell a different story. Total units rose just 0.93% to 3.80 billion. Value growth has also been slowing: 22.4% in FY24, 18.56% in FY25 and 14.88% in FY26.
| FY26 | Sales | Growth |
|---|---|---|
| National companies | Rs998.54 billion (nearly 80%) | +16.53% |
| Multinationals | Rs252.13 billion (20%) | +8.76% |
| Total market | Rs1.251 trillion | +14.88% |
National companies’ units rose 2.98% to 3.006 billion, while multinationals’ units fell 6.16% to 794 million.
A concentrated market
- 102 companies with retail sales above Rs1 billion held 96.63% of the market.
- The eight largest — Getz Pharma, Abbott, Sami Pharmaceuticals, GlaxoSmithKline, Martin Dow, Hilton Pharma, High-Q and OBS — held 37.89%.
- 989 new products were launched in the year, contributing 1.53% of sales.
Why value grows faster than volume
When sales in rupees rise by almost 15% but the number of packs sold rises by less than 1%, the difference comes from price and mix. Three forces are at work:
- Price adjustments — the deregulation of non-essential medicines in 2024 and annual adjustments on controlled ones raised average prices (see deregulation two years on).
- Product mix — newer and more specialised products sell at higher prices than older ones, so a shift in what patients buy raises the average value per pack.
- Affordability — most medicine in Pakistan is paid for out of pocket. When household budgets are under pressure, some patients buy smaller quantities or delay purchases, holding volumes down.
Slowing value growth over three years — from 22.4% to 18.56% to 14.88% — suggests the biggest price adjustments are now behind the market.
National companies set the pace
Local manufacturers now account for nearly four rupees in every five spent at the pharmacy, and they grew faster in both value and volume than multinationals in FY26. Part of that reflects the change of ownership of several multinational plants to Pakistani companies — see the ownership shift. It also reflects how competitive branded generics made in Pakistan have become in price and availability.
New products matter
Nearly a thousand new products were launched in the year. Each launch is a small contribution on its own, but together they show where companies are investing: new formulations, combinations and dosage forms. For suppliers of excipients, packaging and development equipment, that pipeline is a steady source of demand.
A concentrated market
With just over a hundred companies holding almost the entire market, and the eight largest holding more than a third, the industry’s biggest buyers are relatively few. For a supplier, winning one of them can define a year. For smaller manufacturers, competing increasingly means specialising — in a therapy area, a dosage form or export markets — rather than trying to match the leaders across the board.
What to watch in FY27
- Pricing policy — the outcome of the review of the drug pricing framework will shape value growth.
- Volumes — whether unit sales recover as inflation eases will show if affordability is improving.
- Exports — a reopening of the Afghan border or new markets would change production more than domestic sales.
- Costs — the exchange rate and the duty cut on raw materials will affect margins.
What it means for suppliers
A growing, locally led market with flat volumes puts the focus on efficiency, quality and new products rather than simple capacity. That is good news for suppliers of automation, quality systems and differentiated ingredients — and for the export push discussed in our exports article.
Manufacturers and their suppliers meet at Pharma Asia 2026, 20–22 October in Karachi.
