Minister admits pharma firms colluded to hike drug prices

Federal Minister for Health Mustafa Kamal has admitted that after deregulation, some pharmaceutical firms have reportedly colluded to raise prices of medicines.

Kamal was speaking on Thursday at a meeting of the Senate Standing Committee on National Health Services and Regulations. According to the federal minister, medicines were deregulated to create an atmosphere of competition.

However, the committee chairman, Senator Sajjad Hussain Turi, remarked that after deregulation, pharmaceutical companies have turned into cartels.

The minister acknowledged that deregulation was not a final step and could be reviewed. He admitted receiving reports that pharmaceutical companies had colluded to raise prices.

He further conceded that the price of a medicine previously costing Rs7 has now risen to Rs70, and that the purpose of deregulation had not been achieved. "Medicine prices have not come down; in fact, all prices have gone up," Kamal added.

DRAP Chief Executive Officer Dr Obaidullah also briefed the members. He said a survey on medicine price increases is being conducted, and a report on price hikes of 190 types of medicines will be available in September.

According to reports published on August 11, the government has decided to establish a new regulatory body responsible for setting the prices of essential medicines, a task previously managed by DRAP.

This move is part of broader health sector reforms aimed at streamlining the federal health ministry, according to officials from the Ministry of National Health Services.

The decision to relieve DRAP of its price-setting duties follows the caretaker government's earlier deregulation of non-essential medicine prices.

The new body will assume responsibility for regulating the prices of approximately 500 essential medicines.