The turnaround comes after years of complaints from the sector over strict price controls, where drug prices were set by the government while production costs were tied to global factors like currency devaluation, energy prices, and freight charges.
The shift began in February 2024, when the caretaker government moved to deregulate medicine prices, leading to an average increase of around 32% in more than 100 essential drugs.
But higher prices tell only part of the story. While profits surged, overall sales revenue grew by just 14%, pointing to deeper changes behind the scenes.
With inflation and interest rates easing in 2025, companies saw a drop in financing costs, while global prices of key raw materials Active Pharmaceutical Ingredients fell by roughly 11%.
In simple terms, companies were earning more per unit while spending less to produce, it a double advantage that pushed the sector’s profitability to new highs.
