- The decision comes at a time when the government is considering reforms in the health sector and the ministry.
- Prime Minister Shehbaz issues directives to establish new cost-setting body.
- A new federal agency will be tasked with this task: an official from the Ministry of Health.
ISLAMABAD: The Drug Regulatory Authority of Pakistan (Drap) will no longer fix drug prices as the government has decided to set up a new body to delegate responsibility, The news reported on Sunday.
The decision was taken in line with the Government's reforms and efforts in the health sector, as well as the streamlining of the Federal Ministry of Health.
Prime Minister Shehbaz Sharif had issued directives to form a separate pricing body with the committee headed by Law and Justice Minister Azam Nazeer Tarar currently working on a detailed proposal.
An official at the Ministry of National Health Services, Regulations and Coordination (NHS, R&C) told the publication that following the deregulation of non-essential drug prices by the interim government, the current administration has decided to relieve the agency of its role in setting prices for essential drugs as well.
“This task will be taken over by a new agency at the federal level,” the official explained.
Currently, Drap regulates the prices of around 500 essential medicines, according to the latest list of the World Health Organization. The new body will take over this responsibility.
“Two proposals were initially considered: one to create an independent regulatory body for price setting, and the other to establish an independent board of experts from various sectors to determine drug prices,” the official added.
Several essential medicines, including the rabies vaccine, are currently in short supply due to delays in adjusting their prices to meet the needs of manufacturers and importers. For example, the price adjustment of the rabies vaccine produced by NIH Islamabad has been pending for months, leading to a nationwide shortage.
“Similarly, pricing decisions on several difficult cases have been pending for over a year, with the federal cabinet neither accepting nor rejecting Drap's pricing recommendations. This indecision is causing severe shortages of some essential medicines,” the official said.
The deregulation of non-essential drug prices by the previous interim government was intended to ensure the availability of drugs that manufacturers had stopped making. This measure has improved the availability of non-essential drugs for common diseases.
“Deregulation of drug prices promotes competition between pharmaceutical companies, which could reduce costs for consumers and encourage new entrants into the market. It also reduces the administrative burden on Drap, allowing the government to focus on other regulatory functions,” the official said.
Following deregulation, some multinational pharmaceutical companies that had left Pakistan are now considering re-entering the market, which is a positive development for both the pharmaceutical industry and consumers.
“Less regulation on prices will attract both national and international investments, encouraging innovation and growth in the sector,” the official concluded.
