The Competition Commission of Pakistan (CCP) has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010, read a press statement on Thursday.
These exemptions relate to specific restrictive clauses in commercial agreements—such as territorial exclusivity and non-compete provisions—that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act, CCP said.
However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products.
The commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes.
“Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service,” it said.
The commission informed that each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition.
“Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions,” the commission stated.
On Wednesday, the federal government, in an effort to boost pharmaceutical exports, announced the establishment of an empowered Pharma Export Promotion Council, PharmEx Pakistan, under the Trade Development Authority of Pakistan.
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