Removing the import tax on life-saving medicines forms part of a broader government push to cut healthcare costs and accelerate digital payments

Pakistan’s government is considering a move that could make critical medicines more affordable. Authorities are evaluating the abolition of a 3 percent Value Added Tax on imported finished life-saving medicines. These drugs currently fall under the 12th Schedule. Removing the import tax on life-saving medicines would reduce the effective tax burden from around 4 percent back toward the earlier 1 percent GST final tax. Moreover, Topline Securities confirmed the current levy has quietly pushed costs higher across the pharmaceutical import chain.

The impact of approval would flow through the entire supply chain. Landing costs for pharmaceutical imports would fall. Supply chain efficiency would improve. Furthermore, retail prices of critical medicines could drop for patients who depend on these drugs daily. Therefore, this is not just a tax adjustment. It carries direct consequences for healthcare affordability across the country.

In a separate policy direction, the government is also exploring restrictions on large-scale cash transactions. The measures would cover retail stores, food outlets, and petrol stations. The objective is to push more activity into formal digital channels. Furthermore, tighter cash limits would improve tax tracking. They would also gradually expand financial inclusion across the economy. Therefore, both policies target greater transparency and efficiency in different sectors simultaneously.

Neither measure has received final approval yet. Still, the government is actively evaluating both. That signals genuine intent rather than vague aspiration. Furthermore, the two policies together reflect a broader pattern in current government thinking — reduce friction in healthcare and formalise financial transactions at the same time.

Finally, for patients struggling with the cost of essential medicines, even a modest reduction in import taxes could make a real difference at the pharmacy counter.