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The Federal Minister for Economic Affairs and Establishment Division in Pakistan, Senator Ahad Cheema, has ordered an urgent review of the drug-pricing framework in the country, including rules governing price increases and the Hardship Policy.<\/strong><\/p>\n Senator Ahad Cheema expressed dissatisfaction with DRAP\u2019s existing formula for determining increases in medicine prices<\/p>\n Senator Ahad Cheema expressed dissatisfaction with DRAP\u2019s existing formula for determining medicine prices. The minister directed the Ministry of National Health Services and the Drug Regulatory Authority of Pakistan (DRAP) to revise the existing mechanism for approving increases in medicine prices, saying decisions must be transparent, evidence-based and independently verified.<\/p>\n He also called for changes to the composition of DRAP\u2019s Policy Board, including the appointment of a health economist and a public health expert.<\/p>\n Chairing a meeting on drug pricing, Senator Ahad Cheema directed the Secretary National Health Services, and the CEO, DRAP, to finalize and present revised rules governing the Hardship Policy at the earliest possible opportunity.<\/p>\n He stressed that the revised framework must ensure that hardship provisions provide relief only in genuine cases and do not become a mechanism for transferring disproportionate commercial costs to patients.<\/p>\n Senator Ahad Cheema instructed the concerned officials to initiate the necessary process and place the proposed changes before the relevant forum for approval at the earliest.<\/p>\n On this occasion, DRAP officials briefed the Federal Minister on the existing Hardship Policy and its application to essential medicines.<\/p>\n The minister also raised concerns over the margins earned by importers and retailers of essential medicines.<\/p>\n Senator Cheema observed that importers of essential medicines often seek relief under the Hardship Policy and subsequently also seek an increase in prices.<\/p>\n He said the revised rules must address this issue and ensure that the benefits provided under the Hardship Policy are appropriately reflected in the pricing structure rather than resulting in an additional burden on consumers.<\/p>\n The Minister said that where an importer is already benefiting from tax concessions or any other relief provided by the Government under the Hardship Policy, the importer should also be prepared to rationalize its own margin instead of seeking to pass the entire cost on to the consumer.<\/p>\n He directed DRAP to examine the existing importer and retailer margins, including margins that may currently be around 40 percent in relevant cases, and provide for their rationalization under the revised Hardship Rules.<\/p>\n Senator Ahad Cheema stressed that the necessary adjustment should be made between importer and retailer margins.<\/p>\n \u201cIf the Government is extending relief under the Hardship Policy, the importer and retailer must also share the burden through reasonable adjustment of their margins. This adjustment should take place within the supply chain and must not, under any circumstances, be passed on to the consumer,\u201d he said.<\/p>\n He directed the Secretary National Health Services, and the CEO, DRAP, to incorporate an appropriate mechanism for rationalization of importer and retailer margins in the proposed Hardship Rules and submit the revised framework at the earliest for consideration and approval by the relevant forum.<\/p>\n The Federal Minister emphasized that the regulator has a responsibility to maintain a fair market balance, ensuring the continued availability of essential medicines while protecting patients against unjustified price increases. He said commercial viability was important, but it could not be pursued at the expense of consumers, particularly in the case of essential medicines.<\/p>\n The meeting also reviewed the pricing mechanism for originator and existing brands. DRAP officials briefed the Minister that reference pricing, based on prices in neighboring and other relevant countries, is currently used for originator brands.<\/p>\n Senator called for an independent verification mechanism to ensure that the international data used in pricing decisions is accurate and reflects actual market conditions.<\/p>\n He said the regulator needed stronger checks and greater transparency to prevent unjustified increases while ensuring pharmaceutical companies could continue supplying essential medicines.<\/p>\n The minister said the government was committed to providing relief to consumers and maintaining a balance between the commercial interests of the pharmaceutical sector and the public\u2019s access to affordable medicines.<\/p>\n<\/div>\n