The Rotten Core of Pakistan’s Healthcare: Kickbacks and Commissions

You walk into a clinic in Karachi, hoping to shake off that stubborn cough. But instead of relief, you’re handed a stack of prescriptions for expensive meds you don’t need—plus a ‘must-visit’ referral

Dr. Muslim
10 Min Read
Healthcare services in Pakistan
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Key Points
  • Over 70% of private doctors in Karachi reportedly prescribe expensive brand-name drugs
  • Referral scams are rampant, with doctors sending patients to partner labs
  • Regulatory failure by DRAP and other authorities has allowed unethical marketing

Picture this: You walk into a clinic in Karachi, hoping to shake off that stubborn cough. But instead of relief, you’re handed a stack of prescriptions for expensive meds you don’t need—plus a ‘must-visit’ referral to a high-end diagnostic lab (conveniently owned by the doctor’s buddy).

Sound fishy? That’s because it is.

Welcome to Pakistan’s broken healthcare bazaar, where prescriptions are padded with kickbacks, referrals are rigged, and patients are treated like ATMs. Behind the white coats and stethoscopes, a shady commission-based game is thriving—doctors prescribing pills for profit, labs cashing in on unnecessary tests, and regulators? Nowhere to be found.

The result? A system where your health takes a backseat to someone else’s paycheck. Let’s pull back the curtain on this rotten racket, expose who’s getting rich, and—more importantly—how we can take our healthcare back.

Pakistan’s pharmaceutical industry, worth a hefty $3.2 billion, is like a bustling bazaar with over 700 companies jostling for space. In this cutthroat market, some companies resort to shady tactics, slipping doctors cash, fancy gadgets, or all-expenses-paid trips to prescribe their brand-name drugs. A 2025 study in Karachi laid it bare: over 70% of private doctors are in on this game, pushing pills for profit even when cheaper generics would do the trick. It’s like ordering a gourmet burger when a perfectly good sandwich is on the menu. Patients end up with prescriptions stuffed with unnecessary antibiotics or injectables—Pakistan’s got one of the highest medication-per-prescription rates in the world. With 60% of healthcare costs coming straight out of people’s pockets, this hits the poor hardest, turning a trip to the doctor into a wallet-draining ordeal.[BMJ]

Then there’s the referral racket. Picture this: you visit a doctor for a routine checkup, and suddenly you’re sent to a specific lab for a battery of tests or to a specialist who’s “the best” (but really just a buddy splitting the commission). This is business as usual in Pakistan’s private healthcare sector, which handles over 70% of patient visits. A 2019 study spilled the tea, showing how doctors and clinics have normalized these backroom deals.  Patients, often none the wiser, get stuck with bloated bills and delayed care, while the system hums along like a well-oiled machine. It’s a trust-buster—when you can’t tell if your doctor’s advice is about your health or their bank account, faith in the white coat starts to crumble. [PMC]

The real kicker? The folks supposed to keep this in check are dropping the ball. The Drug Regulatory Authority of Pakistan (DRAP), born out of the 2011 “Fake Drug Crisis” that killed over 230 people, is meant to police drug quality and marketing. But enforcing rules against pharmaceutical bribes? That’s like herding cats. DRAP’s 2021 ethical marketing guidelines are more decoration than law, and the Pakistan Medical and Dental Council’s 2002 code of ethics gathers dust. The Sindh Healthcare Commission, tasked with overseeing private clinics, is stretched thin, like a single umbrella in a monsoon. A 2023 report pointed out that both local and global pharma giants exploit these gaps, peddling their wares with little fear of repercussions. The 2011 crisis was a wake-up call, but Pakistan’s still hitting the snooze button.[PMC]

For patients, it’s like being caught in a storm with no shelter. Pakistan spends just 0.4% of its GDP on healthcare—way below the WHO’s 6% benchmark for low-income countries. With doctors favoring pricey brand-name drugs (over 50% of prescriptions shun generics), costs skyrocket. A 2020 Transparency International report flagged jaw-dropping price hikes, hinting at cozy deals between officials and pharma companies. For someone managing diabetes or heart disease, the price of meds can feel like a punch to the gut, especially when drugs cost more here than in India or Egypt. The poorest, leaning on public hospitals where only 15% of essential drugs are available, often resort to black-market meds at obscene markups. It’s a cruel twist—those who need care the most get squeezed the hardest.[Transparency International]

So why do doctors play along? It’s not just greed—there’s a bigger picture. Public-sector doctors, scraping by on salaries that barely cover the bills, often see kickbacks as a lifeline. A 2014 study found 96% of public healthcare users slipping extra cash to doctors for better service, like tipping for a front-row seat. Add to that a lack of ongoing ethical training, and doctors are easy prey for pharma’s charm offensive. Some might argue it’s just surviving in a broken system, but it’s a vicious cycle: patients lose trust, doctors lean harder into side hustles, and the system stays stuck in the mud. It’s less about healing and more about deal-making, leaving everyone shortchanged.[Humanitarian library]

Fixing this isn’t a walk in the park. DRAP tried a code of conduct for pharma companies in 2016, but it’s been about as effective as a paper towel in a flood. A 2025 Karachi experiment threw seminars and warning letters at doctors to curb shady prescribing, but the needle barely moved. Education’s great, but it’s like putting a Band-Aid on a broken leg without tackling the root issues. Ideas on the table include cracking the whip on DRAP and PMDC rules, forcing doctors to disclose pharma perks, and sweetening the deal for prescribing generics. Boosting public healthcare funding to cut out-of-pocket costs and hiring more doctors (Pakistan’s at a measly 1:1300 doctor-to-patient ratio, worse than WHO’s 1:1000) could ease the pressure to cut corners. [BMJ Global Health]

The private sector’s like the wild west, with small clinics in cities like Lahore and Karachi operating under the radar. A 2019 study noted private pharmacies stocking high-profit branded drugs over generics, nudged by pharma payouts. Giving the Sindh Healthcare Commission more muscle to regulate these outfits, plus running campaigns to hype up generics, could shake things up. But the pharma lobby’s got deep pockets, and doctors comfy with the status quo aren’t keen on change. It’s like trying to steer a runaway train—possible, but it’ll take grit.[BMJ]

Recent headlines paint a mixed picture. The 2022 Panadol shortage, sparked by a pricing spat between GlaxoSmithKline and DRAP, showed how shaky the drug supply chain is. DRAP caved, approving price hikes to keep shelves stocked, but critics smelled industry strong-arming. Meanwhile, big names like Eli Lilly packing up and leaving Pakistan in 2022 screamed “no confidence” in the regulatory scene. On the flip side, DRAP’s 2025 eApp system for drug licensing is a step toward transparency, though whether it’ll dent unethical marketing is anyone’s guess. It’s a tug-of-war between progress and pushback, and patients are caught in the middle. [Tabad lab]

So, what’s the game plan? First, DRAP needs to stop winking at violations and start enforcing its 2021 marketing rules with real penalties. Second, weave ethics into medical school and make refresher courses mandatory—call it a moral tune-up. Third, push generics hard, with laws and testing to prove they’re just as good, as a 2024 study suggested. Finally, pump more cash into public healthcare to fix crumbling hospitals and keep doctors from jumping ship. Models like the Lady Health Workers Program show how public-private teamwork can stretch dollars and deliver care. It’s not a quick fix, but it’s a start. [Media]

At the end of the day, Pakistan’s healthcare system is like a house with a leaky roof and a shaky foundation. Kickbacks, dodgy referrals, and limp regulations are bleeding patients dry and shattering trust. The poor, scraping by in a country with meager healthcare spending, bear the brunt. Half-hearted reforms haven’t cut it—tinkering around the edges won’t fix a system this broken. Tougher oversight, a generics revolution, and serious public investment are the only way to rebuild a system that puts people before profits. Until then, every prescription and referral comes with a nagging question: is this about my health, or someone’s payday? [PMC]

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Writer is an Assistant Professor at Iqra National University, with experience in academia and public health. With a commitment to addressing pressing societal issues, he has contributed on platforms like Mukaalama.
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