Govt moves to tighten drug pricing rules, revamp hardship policy

The federal government has pushed for a quick overhaul of how medicine prices are set, with the Hardship Policy and the membership of the Drug Regulatory Authority of Pakistan (DRAP) Policy Board also up for revision, according to APP. The Ministry of National Health Services and DRAP have been told to amend current rules so that consumers are shielded from unjustified price rises while essential drugs stay available.

Senator Ahad Cheema, the federal economic affairs minister, was unhappy with DRAP's current formula for price increases and wants a full review that makes every revision transparent, evidence-based and justified. DRAP has been asked to add tougher scrutiny and independent checks so that cost pressures do not flow automatically to patients. Importers receiving Hardship Policy relief, such as tax concessions, should trim their own margins instead of passing on the full cost, and DRAP will examine margins around 40% in some cases.

Hardship relief will be restricted to genuine cases so it cannot be used to push disproportionate commercial costs onto patients. The board will also add a specialist in health economics and another in public health to support evidence-based choices. Reference prices for originator brands, which draw on rates in neighbouring countries, will be backed by an independent verification mechanism, and the minister said the drug market must stay commercially viable while protecting affordability.