KARACHI: Federal Minister for Health Mustafa Kamal has acknowledged that several pharmaceutical companies colluded to raise medicine prices following the deregulation of the sector.
Speaking at a meeting of the Senate Standing Committee on National Health Services and Regulations on Thursday, Kamal said deregulation was intended to promote competition, but instead pharmaceutical firms acted collectively to increase prices.
Committee Chairman Senator Sajjad Hussain Turi remarked that deregulation had effectively turned the companies into cartels. Kamal admitted that the policy was not final and could be reconsidered. He cited cases where the cost of a medicine had soared from Rs7 to Rs70, adding that the purpose of deregulation had clearly not been achieved.
“Medicine prices have not decreased; in fact, all prices have gone up,” the minister said.
Drug Regulatory Authority of Pakistan (DRAP) CEO Dr Obaidullah also briefed the committee, noting that a survey on price hikes was underway and a detailed report covering 190 medicines would be presented in September.
Earlier this month, the government announced plans to form a new regulatory body to set the prices of essential medicines, shifting this responsibility away from DRAP. Officials said the new regulator will oversee the pricing of around 500 essential medicines as part of wider health sector reforms.
The move follows the caretaker government’s earlier decision to deregulate the prices of non-essential medicines.
