In 2022, Pakistan faced a deepening pharmaceutical crisis: medicine shortages dominated headlines, essential drugs vanished from shelves, and multinational companies considered exiting the market. Local manufacturers struggled to keep production running, leaving patients uncertain about access to vital treatments like insulin, antibiotics, and TB medicines. At the heart of the crisis was a rigid pricing system unable to keep pace with currency fluctuations and inflation. More than 1,300 drugs had been discontinued and over 200 pricing cases were stuck for years, while outdated, fragmented regulations discouraged investment and slowed approvals. Something had to change.
Reform started with more than rules. The UK-funded REMIT programme, implemented by ASI, facilitated structured conversations between government bodies including the Drug Regulatory Authority of Pakistan, the Ministries of Health and Commerce, and provincial authorities, alongside industry associations. For the first time in years, both sides worked together to map a clear path for change.
This approach revealed key bottlenecks including overlapping mandates, unclear legal frameworks, and a lack of trust between government and industry. By tackling these issues collaboratively, the reform process moved beyond piecemeal fixes to systemic change.
Simplifying Regulation and Protecting Access
Reforms focused on three critical goals:
- First, streamlining medicine pricing and approvals to reduce delays.
- Second, clarifying institutional roles to improve efficiency and accountability.
- Third, aligning certain regulations, such as infant formula oversight, with international standards to reduce costs for companies.
These changes were integrated within broader efforts to improve the business environment, linking regulatory reform to investment and growth opportunities.
Tangible Results for Patients and Industry
The impact has been swift and measurable. Pakistan’s pharmaceutical sector recorded its highest-ever quarterly growth at 25 per cent, driven by renewed investor confidence and deregulation. Over 200 pending pricing cases, some unresolved for more than five years, were cleared, allowing companies to restart production of essential medicines. Exports surged by 52 per cent since mid-2024, signalling stronger international confidence in Pakistan’s manufacturing potential. Multinational companies including GSK and Abbott now report greater certainty around pricing and supply.
Patients are benefiting from more reliable access to safe and affordable medicines while the sector positions itself for sustained growth. With exports projected to rise from USD 330 million (£250.5 million) to USD 5 billion (£3.795 billion), Pakistan is on track to become a regional hub for pharmaceutical production.
The turnaround is more than regulatory reform. It is the result of partnership between government, industry, and the development community. Led by the Government of Pakistan, backed by the UK Government and delivered through ASI’s REMIT programme, these reforms are ensuring millions of Pakistanis continue to access the medicines they need.
