Abstract

The availability of life-saving drugs and healthy lives share a strong bond that impacts not only health but also aggregate economic outcomes. Pakistan, however, suffers from persistent drug shortages whose negative repercussions remain rarely discussed. This first ever attempt delves into the welfare impact of drugs shortages on the consumers in terms of the loss that accrues to them monetarily due to non-availability of generic drugs. Calculations indicate that the quantum of monetary losses inflicted upon the masses due to drug shortages over the last six years alone came to Rupees 78.5 million. Research further delved into the factors propagating these shortages. Qualitative results indicated Government regulations to be the main culprit behind these shortages, with quantitative results affirming these findings.