Pakistan’s pharmaceutical industry has seen a significant surge in sales, with a record quarterly sales milestone of Rs237bn, marking a 25% year-over-year increase in 4QFY24. This remarkable growth can be attributed to a 20% price increase and a 5% volume rise. The price hike is largely due to the government’s deregulation of drug prices for non-essential categories and a one-time increase in prices of 146 drugs in February 2024.

The full-year FY24 pharmaceutical sales reached Rs916bn, up 22% year-over-year, outpacing the last 5-year compound annual growth rate of 17%. This growth is expected to enable companies to pass on costs to consumers and return to their historic gross margins, currently at a decade-low of 26%.

Courtesy – Topline Pakistan Research