PPMA says around 80% of previously unavailable medicines are back in Pakistan’s markets after price reforms, easing shortages and reducing black-market activity.
The availability of key medicines across Pakistan has improved sharply after a difficult period of shortages. According to the Pakistan Pharmaceutical Manufacturers Association (PPMA), a large majority of drugs that had disappeared from shelves over the past two years are now back in production and available at retail outlets, offering much-needed relief to patients and caregivers.
How Medicine Shortages Reached a Crisis Point
Industry data shows that nearly 80 percent of around 200 important medicines went out of production when regulated retail prices fell below manufacturing costs. With companies unable to cover their input expenses, many products became financially unviable to produce. This led to widespread gaps in supply across pharmacies and hospitals.
The affected medicines covered a wide range of treatments, including drugs for tuberculosis, cancer, diabetes, cardiovascular diseases and mental health conditions. For patients relying on long-term therapy, the disappearance of these medicines meant frequent visits to multiple pharmacies, higher out-of-pocket costs and in some cases delays or breaks in treatment.
Government Price Reforms Help Restore Supply
Former PPMA chairman Tauqeer Ul Haq explained that supply conditions began to normalise after the government deregulated prices of non-essential medicines in February 2024. Once companies were allowed to adjust retail prices to reflect actual costs, production became commercially viable again for many discontinued products.
Of the roughly 200 medicines that had disappeared from the market, around 160 are now back in domestic circulation. The remaining 40 products are expected to re-enter the market over the next three to four months as manufacturers complete their production and distribution plans. This gradual return is easing pressure on patients and doctors who had been struggling with limited options.
While the state continues to regulate prices of essential, life-saving medicines, Haq noted that the government has also approved price increases for around 100 such drugs over the past 22 months. The aim was to move official prices above production cost levels, so that companies can maintain regular supply without incurring sustained losses.
Rising Costs and Pressure on Local Manufacturers
Pharmaceutical manufacturers say the crisis did not emerge overnight. Production costs rose sharply due to the depreciation of the rupee, higher global prices and more expensive imports of raw materials. The disruption of imports from India, a key supplier of many active pharmaceutical ingredients, added another layer of pressure on local firms.
Pakistan currently has around 700 pharmaceutical companies, including about 10 multinational firms. Many of these businesses have invested in resuming and expanding production over the past two years, once pricing and regulatory conditions started to improve. According to PPMA, increased availability of genuine products has also helped reduce counterfeit medicines and black-market trading, which had flourished during the height of shortages.
Impact on Patients, Pharmacies and Public Health
For patients, the return of key medicines means fewer compromises in treatment plans and better continuity of care. Pharmacies, which were facing frustration from customers unable to find prescribed brands, are now gradually restocking their shelves with a wider range of options. Doctors also report less need to switch prescriptions purely because of non-availability.
At the public health level, stable medicine supply is crucial for controlling long-term diseases such as diabetes, heart conditions and tuberculosis. Regular access to standard therapies helps prevent complications, reduces hospital admissions and lowers overall system costs. The easing of shortages therefore supports both individual patients and the broader healthcare system.
Export Growth and Future Outlook for the Pharma Sector
Despite recent domestic challenges, Pakistan’s pharmaceutical industry has recorded strong performance in export markets. Haq said that pharma exports grew by 34 percent in the fiscal year ending 30 June 2025, reaching $457 million. This marks the sector’s strongest growth in two decades and reflects rising demand for Pakistani-made medicines abroad.
Export growth is expected to continue as more local firms secure international certifications, including PIC/S and World Health Organization approvals. These standards help companies access new markets and build trust with foreign buyers. If regulators, manufacturers and healthcare professionals maintain close coordination, the sector could strengthen its role both in meeting domestic medical needs and in earning valuable foreign exchange for the country.
