ISLAMABAD: While Pakistan’s economy is stagnating, its pharmaceutical sector is thriving. According to data from IQVIA, an international monitoring firm, the industry grew by an impressive 21.79 percent in the third quarter of 2024 compared to the same period last year, reaching a market value of Rs 962.5 billion.
Experts and industry sources said on Wednesday that the increase reflected the impact of deregulatory policies introduced earlier this year, which forced drugmakers to adjust prices for non-essential drugs amid rising production costs. Allowed.
Pharmaceutical industry experts also said that market expansion is primarily driven by price adjustments rather than unit sales growth, reflecting a widening gap between value and volume. Over the past year, the industry sold 3.7 billion units, recording a marginal growth of 2.27 percent, while higher prices led to a rise in revenue. In September 2024, the sector recorded its highest ever monthly sales of Rs 94 billion.
In the last 12 months, the sector introduced 540 new pharmaceutical formulations, further fueling its growth. National pharmaceutical companies (NATs) outperformed their multinational counterparts — MNCs in terms of growth rate (22.62 percent as against 19.4 percent for MNCs) and market share (NATs at 74.59 percent of market share in value terms). dominate) reflects the adaptation of local players to meet domestic demand.
The outstanding performance of the pharmaceutical sector comes at a time when other industries are facing challenges. The economy grew by a meager 0.92 percent in the first quarter of FY2025. Manufacturing and construction have contracted largely, while the agriculture and services sectors have seen only modest gains.
Although the deregulation policy has been instrumental in the growth of the pharmaceutical sector, it has led to an increase in drug prices.
Renowned cardiologist Dr. Akram Sultan confirms that rising healthcare costs are forcing patients to request fewer prescriptions. “Deregulation has undoubtedly boosted the industry, but it has left patients struggling. Costs of transportation, doctors’ fees, diagnostic tests and drugs are becoming unaffordable.
However, pharmaceutical representatives say that the deregulation policy was necessary to sustain the industry. “This policy has allowed companies to come out of financial pressure and ensure availability of many important medicines,” said Toqeer-ul-Haq, chairperson of the Pakistan Pharmaceutical Manufacturers Association (PPMA).