Region: ASIA & SOUTH PACIFIC | Type: Policy | Keywords: #annualpricehikes #drap #drugpricingpolicy #nationalhealthservice #priceincreases
- The Drug Pricing Policy, 2018 has been revised by the federal government to allow the government to prevent pharmaceutical companies from annual price increases for a category of drugs, announced the Ministry of National Health Services
- Previously under the Drug Pricing Policy, 2018, pharmaceutical companies were granted the right to up medicine prices annually by 7% and 10%, without facing government intervention
- Earlier this month, Pakistan’s federal cabinet approved removing the power of pharmaceutical companies to set prices; instead, the Drug Regulatory Authority of Pakistan (DRAP) and the Ministry of National Health Services will determine drug prices on the applications of pharmaceutical companies and the government will be responsible to issue notifications on price hikes
THE DETAILS
ISLAMABAD, Pakistan – The Drug Pricing Policy, 2018 has been revised by the federal government to allow the government to prevent pharmaceutical companies from annual price increases for a category of drugs, announced the Ministry of National Health Services.
Previously under the Drug Pricing Policy, 2018, pharmaceutical companies were granted the right to up medicine prices annually by 7% and 10%, without facing government intervention.
By stripping pharmaceutical companies of this power, the revised Drug Pricing Policy, 2018, is more aligned with the Drug Act, 1976.
In addition, the government has not approved any price increases for essential drugs. Over the last year or so, however, Pakistan has experienced several medicine price hikes. Going forward, the industry has promised to not apply for annual price increases until at least September 2020.
Earlier this month, Pakistan’s federal cabinet approved removing the power of pharmaceutical companies to set prices, following the advice of Prime Minister Imran Khan, who oversees the Ministry of National Health Services, Regulations, and Coordination.
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