Examining the Role of Pakistan’s Competition Authority in Regulating Price Fixing and Trade Restriction Practices in the Pharmaceutical Industry

Abstract

The pharmaceutical sector of Pakistan has a significant contribution and function in the Pakistani health system by providing various medicine and health products. It is also a sector where tenders rig the market, engage in restrictive trade practices defeating the objective of competition to sell drugs at exorbitant prices and limit access to affordable prices. The Competition Commission of Pakistan (CCP) was established in 2007 pursuant to the Competition Act, 2010 which aimed at checking anti-competitive activities, distorting the price and practicing restraints on trade. This research is designed to explore the CCP’s role in addressing price fixing and trade restrictive practices in the pharmaceutical industry of Pakistan with reference to its enforcement measures, difficulties and efficiency. The regulation of the market by CCP, its key case related to drug prices and its regulation, and perspectives of the major stakeholders shall be examined in the context of the identified problems and the propositions for improvements in CCP’s role towards its vision of a competitive pharma market. The case study underneath this research is therefore informed by use of qualitative research approaches that included Cases studies, Interviews with officials and key stakeholders and review of documents; this research aims at establishing an understanding on how the competition law in Pakistan affects the pharmaceutical sector and public health.