Undoing deregulation policy will trigger drug shortages: Pakistan Pharm­aceutical Manufacturers Association

KARACHI: Fearing the reversal of price deregulation policy for non-essential medicines, the pharmaceutical industry has warned that such a decision could lead to “medicine shortages, factory shutdowns, falling exports and loss of investor confidence”.

In a statement, Pakistan Pharm­aceutical Manufacturers Association (PPMA) claimed that the deregulation policy announced in 2024 has already led to a 34 per cent increase in pharmaceutical exports, improved medicine availability, expansion of internationally certified manufacturing facilities and higher tax contributions.

“While any reversal of the policy could result in medicine shortages, factory shutdowns, falling exports and loss of investor confidence,” it said.

“According to industry estimates, pharmaceutical exports increased from around $336 million before deregulation to nearly $450 million in 2025, while manufacturers also expanded investment in WHO, PIC/S and EU GMP compliant facilities aimed at accessing regulated international markets, including Europe, the United States, Canada and Australia,” it said.

Industry officials said deregulation also helped stabilise medicine supplies in the local market, improve quality standards and reduce the circulation of counterfeit medicines. Pharmaceutical manufacturers warned policymakers against reports of a possible reversal of the deregulation policy, saying such a move could wipe out recent gains, revive medicine shortages and damage Pakistan’s ambitions of becoming a major pharmaceutical export economy.

“Pakistan’s pharma sector has suffered for years due to rigid price controls on both essential and non-essential medicines, which discouraged investment and forced several multinational companies either to leave Pakistan or significantly reduce their operations.

“Deregulation gave manufacturers the long-awaited breathing space to reinvest in quality systems, maintain international certifications and compete globally. If the policy is reversed, the industry could again face shortages, declining exports and tax revenues, closure of manufacturing lines and rising unemployment,” the statement warned.

According to the industry, multinational pharmaceutical companies including Pfizer, Novartis, Sanofi, Bayer and Johnson & Johnson exited Pakistan over the past decade because the pricing environment had become commercially unsustainable. Industry representatives said that pharmaceutical sector had long been treated differently from industries such as cement, sugar, banking, automobiles and textiles.

Published in Dawn, May 25th, 2026