Govt mulls revision of DRAP pricing formula

Business Recorder reported that Senator Ahad Cheema, Federal Minister for Economic Affairs, has asked the Ministry of National Health Services and the Drug Regulatory Authority of Pakistan to speedily overhaul the rules that govern medicine pricing. The directive covers the Hardship Policy and the makeup of the DRAP Policy Board. Cheema voiced discontent with the authority's current method for approving medicine price increases, which he said needs a thorough review so that any revision is open, grounded in evidence and well justified.

Cheema wants DRAP to tighten its price-increase formula with closer scrutiny and independent checks, so that rising costs are not automatically shifted onto patients. He also flagged that importers who obtain relief under the Hardship Policy often ask for higher prices afterwards. According to the minister, importers and retailers should trim their margins, which he said could be near 40 per cent in some cases, rather than pass the full burden to consumers.

Policy Board changes are also planned, with a Health Economist and a Public Health expert to be added. The government said the revised framework must balance pharmaceutical sustainability with affordability, since drug-pricing decisions directly affect millions of households. Reference pricing for originator brands would also be checked by an independent verification mechanism.