Pakistan’s retail pharmaceutical market reaches PKR 1.007 trillion in 2024

The retail pharmaceutical market in Pakistan has reached a landmark value of PKR 1.007 trillion ($3.6 billion) with an annual growth rate of 21.45% as of December 2024, according to a report from IQVIA.

Over the past 12 months, the total pharmaceutical market has sold 3.73 billion units, marking a growth of 2.85%.

The last quarter of CY24 emerged as the highest quarter in the industry's history with value growth of 19.31% and volume growth of 2.97%. The industry peaked in October 2024 with a record-breaking PKR 96 billion in sales.

Getz, SAMI, ABBOTT, GlaxoSmithKline, SEARLE and Martin Dow have the market value of over PKR 40 billion each and have the cumulative market share of 33.7%.

Progressive changes are reshaping the pharmaceutical sector as the government has deregulated the prices of drugs not included in the National Essential Medicines List (NEML).

This deregulation allows pharmaceutical companies to adjust prices according to market dynamics, offering significant revenue potential for companies with a substantial proportion of non-essential products.

Looking forward, Pakistan’s economy is projected to grow positively, with inflation and policy rates expected to decline further. Anticipated IMF disbursements are likely to bolster foreign exchange reserves, contributing to the stability of the PKR/USD exchange rate.

Despite the positive outlook, industry officials express concerns over the impact of United States funding cuts to the World Health Organization (WHO) and USAID. These cuts threaten several health programs in Pakistan, where medicines are provided free or at nominal charges to patients in underdeveloped areas.

The reduction in funding could adversely affect the pharmaceutical industry in the long run, as orders from WHO, USAID, and allied organizations may dwindle.

The World Health Organization has also voiced deep concern over the impact of US funding cuts on critical global health initiatives, warning that these cuts pose a direct threat to public health efforts worldwide.