The Pakistan Pharmaceutical Manufacturers Association (PPMA) has pushed back against reports of a 32 percent surge in medicine prices, clarifying that the actual average increase since the government’s price deregulation policy in February 2024 stands at 15 percent.
In a formal statement, the association contended that the widely circulated 32 percent figure represents a cumulative price adjustment over the last two years, not a direct result of the recent policy shift. The PPMA further detailed that the 15 percent post-deregulation figure incorporates a 2.5 percent growth factor from new product launches and expanded production, suggesting the net impact on existing medicines is closer to 13.5 percent.
Citing data from the globally recognized IQVIA report, the industry body noted that overall medicine prices have risen by only 16 percent over the past 12 months, a figure that includes new molecules and organic growth.
The association explained that prior to deregulation, the pharmaceutical sector faced a severe crisis driven by stringent price controls, sharp rupee depreciation, and record inflation of up to 35 percent.
These economic pressures had previously led to widespread shortages of critical treatments, including anti-cancer drugs, insulin, and cardiovascular medicines, compelling patients to seek out potentially hazardous counterfeit or smuggled alternatives.
According to the PPMA, the new policy governing non-essential medicines has already helped restore the availability of over 50 life-saving drugs as manufacturers have resumed local production. The move aligns Pakistan’s pricing framework with international standards followed by regional peers like India and Bangladesh, where only essential medicines remain under price control.
The policy shift has also reportedly revived investor confidence, with several multinational corporations opting to continue their operations in the country. Concurrently, the sector”s exports have achieved a record growth of over 34 percent, bolstered by eight local firms attaining PIC/S qualification and others securing WHO and MHRA certifications, which enhances global credibility and export potential.
Looking forward, the association expressed optimism about ensuring an uninterrupted supply of essential medicines while introducing innovative treatments. The PPMA projects that the industry is on track to expand its exports to $3 billion within the next three years.
Ultimately, the association emphasized that deregulation has successfully stabilized the market, significantly improved medicine availability, and laid the groundwork for sustainable growth in Pakistan”s pharmaceutical sector.