ISLAMABAD: Federal Minister for Economic Affairs and Establishment Division, Senator Ahad Cheema, has directed the Ministry of National Health Services and the Drug Regulatory Authority of Pakistan (DRAP) to urgently revise the regulatory framework governing drug pricing, including changes to the Hardship Policy and the composition of the DRAP Policy Board, with a clear focus on protecting consumers from unjustified price increases while ensuring the availability of essential medicines.
Presiding over a meeting on drug pricing here on Friday, which was attended by Federal Secretary of Health, Captain Muhammad Mehmood (Retd), Dr Obaidullah, the chief executive officer (CEO) of the Drug Regulatory Authority of Pakistan (DRAP), along with other officials, Cheema also asked the secretary of the Ministry of National Health Services and DRAP to propose changes in the Hardship Policy and the composition of the DRAP Policy Board, with a clear focus on protecting consumers from unjustified price increases while ensuring the availability of essential medicines.
The minister expressed dissatisfaction with DRAP’s existing formula for determining increases in medicine prices, observing that the current mechanism required a comprehensive review to ensure that any price revision was transparent, evidence-based and fully justified.
He directed DRAP to review and strengthen the price-increase formula, with greater scrutiny and independent checks to ensure that cost pressures were not automatically passed on to consumers through higher medicine prices.
The minister also directed that the composition of the DRAP Policy Board be revised to strengthen expertise and evidence-based decision-making. He specifically directed the inclusion of a health economist and a public health expert on the Policy Board.
The Ministry of National Health Services and DRAP agreed with the proposal, and Senator Ahad Cheema instructed the officials concerned to initiate the necessary process and place the proposed changes before the relevant forum for approval at the earliest.
“Drug-pricing decisions have a direct impact on millions of households. Our regulatory framework must therefore combine pharmaceutical sustainability with affordability and strong consumer protection,” Senator Ahad Cheema said.
During the meeting, DRAP officials briefed the minister on the existing Hardship Policy and its application to essential medicines.
Senator Ahad Cheema observed that importers of essential medicines often sought relief under the Hardship Policy and subsequently also sought an increase in prices. He said the revised rules must address this issue and ensure that the benefits provided under the Hardship Policy were appropriately reflected in the pricing structure rather than resulting in an additional burden on consumers.
The minister said that where an importer was already benefiting from tax concessions or any other relief provided by the government under the Hardship Policy, the importer should also be prepared to rationalize its own margin instead of seeking to pass the entire cost on to the consumer.
He directed DRAP to examine the existing importer and retailer margins, including margins that may currently be around 40 percent in relevant cases, and provide for their rationalization under the revised Hardship Rules.
Cheema stressed that the necessary adjustment should be made between importer and retailer margins.
“If the government is extending relief under the Hardship Policy, the importer and retailer must also share the burden through reasonable adjustment of their margins. This adjustment should take place within the supply chain and must not, under any circumstances, be passed on to the consumer,” he said.
He directed the secretary of the National Health Services and the CEO of DRAP to incorporate an appropriate mechanism for rationalization of importer and retailer margins in the proposed Hardship Rules and submit the revised framework at the earliest for consideration and approval by the relevant forum.
The minister emphasized that the regulator has a responsibility to maintain a fair market balance — ensuring continued availability of essential medicines while protecting patients against unjustified price increases.
He said commercial viability was important, but it could not be pursued at the expense of consumers, particularly in the case of essential medicines.
The meeting also reviewed the pricing mechanism for originator and existing brands.
DRAP officials informed the minister that reference pricing, based on prices in neighboring and other relevant countries, was currently used for originator brands.
Senator Ahad Cheema said that international reference pricing should be supported by an independent verification mechanism to ensure that pricing decisions were based on credible data and accurately reflected market realities.
He directed DRAP to develop a stronger and more independent system of checks within the drug-pricing framework, ensuring transparency, fairness and effective regulatory oversight. He said a sustainable pharmaceutical market was important, but sustainability must go hand in hand with affordability and protection of the public interest.
Cheema said the government was committed to providing maximum possible relief to the public.
He stressed that access to affordable medicines was directly linked to public welfare, and that the government would continue strengthening regulatory mechanisms to ensure a fair balance between the legitimate needs of the pharmaceutical sector and the interests of consumers.
Copyright Business Recorder, 2026
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