DE

Economic Reform
Navigating Lebanon’s Economic Crisis: Challenges, Opportunities, and Strategic Solutions for the Pharmaceutical Sector  

Challenges, Opportunities, and Strategic Solutions for the Pharmaceutical Sector
pharma

This policy paper is produced in partnership with The Lebanese Center for Policy Studies

 

This policy paper emphasises the critical role of Lebanon's pharmaceutical sector in ensuring healthcare access, economic stability, and self-reliance amidst ongoing crises. It outlines major challenges, including regulatory deficiencies, reliance on imports, and the collapse of subsidies, which have caused shortages and increased drug prices. The paper proposes actionable strategies to rebuild and sustain the sector, such as promoting local manufacturing, enhancing regulatory frameworks, leveraging public-private partnerships, and aligning policies with global standards. It highlights the importance of innovation, research, and development to improve competitiveness and reduce reliance on imports. By prioritising transparency, accountability, and collaboration across stakeholders, this policy paper envisions a robust pharmaceutical sector capable of meeting the health needs of the population and contributing to economic recovery.

 

Rasha Hamra holds a PharmD, a master’s in public health, and a Doctorate in Health, with over 13 years of experience at Lebanon’s Ministry of Public Health, where she led critical pharmaceutical reform initiatives. She also spent two years at the World Health Organization’s Lebanon office, where she contributed to the development of key national strategies. Currently, she is an independent public health expert dedicated to strengthening Lebanon’s public health sector.

Executive Summary

The economic crisis in Lebanon, which began in 2019, has severely impacted the healthcare and pharmaceutical sectors, exposing critical challenges in medication supply, financial sustainability, and regulatory frameworks. Lebanon’s reliance on imported medications has been disrupted by the collapse of the banking sector and currency depreciation, reducing imports and opening opportunities for local manufacturing, though this is limited by scarce resources and capacity.

Political instability and the removal of subsidies have exacerbated medication access, driving up out-of-pocket healthcare costs and leaving much of the population dependent on the Ministry of PublicHealth (MoPH), which now operates with a significantly reduced budget. Medication shortages, price increases, and the growing risk of counterfeit drugs due to limited oversight have left patients adjusting treatments due to financial constraints.

Key structural issues, including the reliance on costly imports and inadequate regulatory systems, further hinder the pharmaceutical
sector. To address these issues, a multi-tiered approach is required.

Short-term solutions focus on implementing existing regulations and cost-control measures, centralising drug procurement,enhancing regulatory frameworks, and accelerating digitalisation. Strengthening primary care systems and improving policy dissemination are also essential.

Medium-term strategies emphasise supporting local manufacturing, encouraging multinational companies to invest in Lebanon, and joining the Pharmaceutical Inspection Co-operation Scheme (PIC/S) to align with international standards. Collaborating with the Lebanese diaspora and international organisations, expanding R&D, and fostering public-private partnerships will also be crucial for improving access to medicines.

Long-term strategies include establishing a fully operational Lebanese Drug Authority (LDA) to oversee pharmaceutical standards,modernising systems like the Central Lab, and implementing digital prescription systems to improve quality control. Developing a Health Technology Assessment (HTA) system for resource allocation, workforce education in pharmacoeconomic, pharmacovigilance, and health technology assessment, and creating more career opportunities for pharmacy graduates, will strengthen Lebanon’s pharmaceutical sector.

Additionally, introducing sin taxes on harmful substances like cigarettes and sugary drinks could provide revenue for the healthcare system, although legal issues surrounding fund allocation need to be addressed.

In conclusion, Lebanon’s healthcare and pharmaceutical sectors require urgent reforms to ensure affordability, availability, and quality of medications. Immediate actions, supported by strong governance, international collaboration, and sustainable funding, will help Lebanon navigate its current challenges and build a more resilient and sustainable healthcare system for the future.