PPMA chairman speaks of ‘critical’ challenges facing country’s pharma sector

29 Apr, 2024

KARACHI: Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Mian Khalid Misbah-ur-Rehman highlighted critical challenges facing Pakistan’s pharmaceutical sector, particularly over drug shortages and pricing policies.

Chairman Rehman, during a show on Aaj News, emphasised the need for immediate action to address drug shortage issues, stating that while the deregulation of non-essential drugs and price de-control by the government could gradually resolve some problems, the issue of essential drugs remains unresolved.

He pointed out that the government has capped the annual price increase for essential drugs at 7%, a figure that falls short given significant inflation and currency depreciation experienced in recent years. Rehman emphasised the need for a more flexible pricing policy that can adapt to economic realities.

“There is no other commodity that has seen a price increase of just 7%. Some commodities have seen 70% and 80% increase in prices,” Rehman said, highlighting the disparity in price regulations.

Rehman also highlighted the disparity in pricing policies between Pakistan and other countries, noting that India, with a more stable economy, allows a 12.2% increase in the price of non-essential drugs. He called for a review of Pakistan’s pricing policies to ensure they are fair and reflective of the economic challenges facing the country.

He added that Pakistan’s essential drug list has 494 medicines, which is the biggest in the region. India has 384, Bangladesh below 120 and Sri Lanka only has 60 medicines in the list.

Regarding regulatory issues, Rehman expressed concern over the outdated Drug Act of 1976, which has not been revised to keep up with modern standards and practices in the pharmaceutical industry. He highlighted the need for DRAP (Drug Regulatory Authority of Pakistan) to be properly staffed and equipped to address regulatory challenges effectively.

“Even if law gives autonomy to DRAP, people are needed to exercise that autonomy,” Rehman emphasised, pointing out the challenges faced by the regulatory authority due to lack of continuity in director appointments.

Rehman also criticised the current approach to minor manufacturing errors, stating that while international standards focus on warning and investigation, Pakistan’s laws often lead to criminal litigation, regardless of intent. He called for a more nuanced approach to quality control issues to avoid undue penalization of pharmaceutical companies.

Rehman expressed optimism that the recent deregulation of non-essential drugs would improve availability and pricing of some non-essential drugs through increased competition. However, he emphasised that more comprehensive reforms are needed to address the underlying issues facing Pakistan’s pharmaceutical sector.

He urged the government to work closely with industry stakeholders to develop policies that promote growth and sustainability, which also ensure patients have access to affordable and high-quality medicines. Rehman stressed the importance of a collaborative approach to reform, involving all relevant parties to achieve meaningful change.

The pharmaceutical sector plays a crucial role in Pakistan’s healthcare system, and addressing the challenges it faces is essential to ensure the health and well-being of the population. As such, Chairman Rehman’s call for urgent reforms highlights the need for decisive action to improve the sector’s performance and address the issues of drug shortages and pricing policies.

Copyright Business Recorder, 2024

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