Drug Deregulation Reversal Could Trigger Shortages, Warns PPMA

Pakistan’s pharmaceutical industry has warned the government against reversing the deregulation policy for non-essential medicines, arguing that the move could lead to medicine shortages, factory closures, lower exports and reduced investor confidence.

In a statement, the Pakistan Pharmaceutical Manufacturers Association (PPMA) said the deregulation policy introduced in 2024 has helped improve medicine availability, encourage new investment and strengthen the industry’s export performance. The association claimed pharmaceutical exports increased by 34 percent, rising from around US$336 million before deregulation to nearly US$450 million in 2025.

According to the industry, the policy enabled manufacturers to invest in internationally certified production facilities compliant with World Health Organization, PIC/S and European Union Good Manufacturing Practice standards, helping Pakistani companies target regulated markets including Europe, the United States, Canada and Australia.

Pharmaceutical manufacturers said the policy also contributed to improved medicine availability in the domestic market, higher quality standards and reduced circulation of counterfeit products. Industry representatives warned that any reversal could undo these gains and create fresh challenges for manufacturers and consumers alike.

The PPMA said Pakistan’s pharmaceutical sector had struggled for years under strict price controls on medicines, which discouraged investment and contributed to the downsizing or exit of several multinational pharmaceutical companies from the country.

According to industry representatives, global firms including Pfizer, Novartis, Sanofi, Bayer and Johnson & Johnson either reduced their presence or exited Pakistan over the past decade due to what they described as an unsustainable pricing environment.

The association urged policymakers to maintain the deregulation framework, arguing that it has provided manufacturers with the flexibility needed to invest in quality improvements, expand exports and remain competitive in international markets.