The Competition Commission of Pakistan (CCP) has greenlit six exemptions for the fiscal year 2024-25 to propel innovation and accessibility within the pharmaceutical industry. These exemptions, sanctioned under Section 5 of the Competition Act, 2010, aim to stimulate fair competition and safeguard consumer interests.

The exemptions pertain to certain restrictive aspects within commercial agreements, such as territorial exclusivity and non-compete clauses, which would typically fall under Section 4″s Prohibited Agreements. However, following an exhaustive evaluation that encompassed market structures, sector rules, and agreement terms, the CCP found these arrangements to significantly enhance production efficiency, technological innovation, and consumer access to pivotal pharmaceutical products.

The Commission asserts these exemptions will elevate service delivery, expand medicine availability in underrepresented areas, and contribute to improved public health results. Consumers are poised to gain from cutting-edge pharmaceutical technologies, dependable product insights, and superior service quality.

Every exemption is time-bound and comes with stipulations ensuring that the competitive advantages surpass any negative impact on market competition. Notably, the entities involved must refrain from engaging in price-fixing or any collusive behavior, as pricing strategies fall outside the exemption”s purview.

The pharmaceutical industry remains a focal point for CCP’s exemption strategy, with the Commission working closely with health regulators to guarantee these actions align with the public good.