Punjab Shuts Down Private Pharmacies in Government Hospitals
Punjab’s Specialized Healthcare Department has ordered the immediate closure of all private pharmacies in government teaching hospitals.

The Punjab Specialized Healthcare Department has directed the immediate closure of all private pharmacies operating inside government teaching hospitals, terming their presence unlawful.
A circular issued to vice chancellors, principals, deans, and medical superintendents instructs hospital administrations to enforce the shutdown and submit compliance reports by October 1, 2025. The directive affects major teaching hospitals across the province.
Allegations Against Private Pharmacies
Officials said the decision follows repeated complaints about the role of private medical stores inside and around hospital premises. According to the department, some of these outlets were allegedly offering commissions to doctors in exchange for patient referrals or prescriptions. Others were accused of manipulating medicine quotas, diverting supplies intended for public use.
The department described such practices as a direct violation of medical ethics and a threat to the transparency of the healthcare system.
Previous Measures
The ban builds on earlier restrictions introduced by the department to reform the pharmaceutical supply chain within hospitals. Internal circulars had previously limited procurement from external vendors and instructed hospitals to strengthen their own dispensary systems.
With the new order, all private outlets within hospital premises are required to cease operations entirely.
Implementation Timeline
Hospital administrations have been given less than 48 hours to comply. The Specialized Healthcare Department has set October 1 as the deadline for written compliance reports. Provincial health authorities are expected to monitor enforcement closely, with inspections planned in major hospitals to ensure adherence.
Reaction from Hospitals
Senior doctors and administrators offered mixed responses to the directive. Some welcomed the move, arguing that private pharmacies inside public hospitals blurred the lines between public service and private business. “This was long overdue,” said a medical superintendent at a Lahore teaching hospital. “It will restore confidence in our own hospital pharmacies.”
Others expressed concern about practical challenges. Many patients, they noted, relied on the convenience of private outlets, particularly when government pharmacies faced stock shortages. Without improvements in public supply chains, they warned, patients could face difficulties obtaining essential medicines on time.
Patient Concerns
Patients and their families also reacted cautiously. While some supported the idea of eliminating conflicts of interest, others worried about medicine availability.
“I don’t mind buying from the government pharmacy,” said Muhammad Aslam, whose father is under treatment at Mayo Hospital. “But if they don’t have the medicines in stock, patients will suffer.”
Public hospitals in Punjab have previously faced criticism for stockouts, forcing patients to purchase medicines from nearby private shops. The closure of in-hospital private outlets will put additional pressure on government pharmacies to meet demand.
Industrial and Ethical Context
Healthcare observers say the move reflects broader efforts to curb profiteering in Pakistan’s medical sector. Allegations of kickbacks, inflated prescriptions, and supply manipulation have plagued public hospitals for years. By shutting down private pharmacies inside these institutions, the government hopes to reduce opportunities for such practices.
However, experts caution that reforms must also include supply chain improvements, better oversight, and sufficient budget allocations to ensure that government pharmacies can function effectively without creating new hardships for patients.
Next Steps
The Specialized Healthcare Department has confirmed that it will not tolerate delays in implementing the order. Officials said compliance reports will be reviewed immediately after the October 1 deadline, and hospitals failing to enforce the ban could face administrative action.
The department also emphasized that the policy applies uniformly across all teaching hospitals in Punjab and that no exceptions will be made.
Outlook
The closure of private pharmacies inside government hospitals marks a significant shift in Punjab’s healthcare policy. Whether it leads to greater transparency and patient relief will depend on how effectively public hospitals adapt to the new system in the coming weeks.