Industry
Healthcare
Counsel for hospitals, clinics, labs, pharma and device businesses in Pakistan — a sector regulated twice over, once for its products by DRAP and once for its establishments by the provincial healthcare commissions.
Healthcare is regulated twice in Pakistan, along two lines that rarely meet. The first line is federal and runs through products: DRAP licenses and registers drugs and medical devices, controls prices, and polices manufacture and import under the DRAP Act, 2012 and the Drugs Act, 1976 behind it. The second line is provincial and runs through institutions: the healthcare commissions — Punjab's first, under the PHC Act, 2010 — license establishments, set minimum service delivery standards, hear patient complaints and pursue quackery. A hospital lives on both lines at once, plus a third that regulates its people through the practitioners' and nursing councils. The sector's legal work begins with accepting that no single regulator will ever give a complete answer.
Two regulatory spines, one institution
The practical consequence of the two-spine structure is that compliance has to be assembled institution-side. The establishment licence from the commission covers the facility; it says nothing about whether the pharmacy holds its drug sale licence from the provincial drug control machinery, whether the imaging equipment and implants in use are DRAP-registered, or whether every practitioner on the roster holds current council registration. Each authority inspects its own slice on its own cycle. We build clients a single licence-and-registration map with named owners and renewal dates, because the alternative — discovering the gap during an inspection, a tender or a post-incident investigation — prices the same work at a multiple.
Negligence exposure in practice
Pakistan has no medical negligence statute, and the honest description of the exposure is procedural rather than substantive: the same adverse event can be litigated through five doors. The healthcare commission investigates and fines but does not compensate. The consumer courts offer patients a cheap forum, though whether medical services fall within the provincial consumer acts has divided courts and differs by province [TO BE VERIFIED BY REVIEWING LAWYER]. Civil damages suits exist but move slowly and historically award modestly. Criminal law is the sharpest edge — an FIR against a treating doctor after a death is a real and recurring event, not a rarity. And the council can act against the practitioner's registration throughout. Defending an institution means coordinating across all five tracks from the first day, which in turn means the first day's work — records preservation, privileged internal review, a single point of communication — matters more than anything done in month three. We prepare hospitals for this before any incident, and stand up the coordinated defence when one occurs.
The people inside a hospital
No other industry runs a workforce like a hospital's: employed nurses and technicians around the clock under the general labour statutes, house officers and trainees in a category of their own, and at the top the consultant model — senior specialists on privileges and revenue shares rather than salaries. The model is commercially rational and legally underdocumented almost everywhere. Whether the hospital answers for a consultant's negligence, who withholds tax and pays contributions, who owns the clinical record and the patient relationship, and what restrains a departing consultant — within the limits section 27 of the Contract Act, 1872 places on restraints — are all questions the revenue-share handshake never answers. We draft the consultant stack, the employment tiers beneath it, and the statutory machinery around all of it, including the harassment-inquiry committee the 2010 Act requires of hospitals as of every other employer.
Revenue structure is shifting beneath the workforce questions. Panel agreements with insurers, corporate employers and public health-insurance schemes carry a growing share of private hospital income, and they arrive as the payer's template: pre-authorisation procedures, tariff schedules, claw-backs for documentation deficiencies, and indemnities that quietly move clinical risk onto the provider. These are commercial contracts with regulatory consequences — a documentation standard agreed with a payer becomes the standard a commission complaint is later judged against — and they deserve negotiation rather than signature. Empanelment conditions under government schemes add a further layer that changes with the schemes themselves.
How we work with providers and health businesses
For hospitals and clinic groups: the licence map, the consultant and employment stack, insurer and corporate-panel agreements, incident protocol and multi-forum defence. For pharma, device and diagnostics businesses: DRAP licensing and registration, pricing and recall questions, distribution and tender contracts. For founders and investors: structure — for-profit company, section 42 not-for-profit or trust, with the Punjab Charities Act, 2018 registration layer where it applies — and the diligence repair that healthcare deals invariably need. Digital health clients get candour above all: telemedicine and health-data practice currently run ahead of any statute written for them, and we document that reality rather than inventing certainty. Positions here are stated as of mid-2026; in a sector where the practitioners' regulator itself has been re-legislated twice in a decade, the current instrument is confirmed before advice is given.
The Five Recurring Problems
The problems this sector keeps producing.
- 01
Licences run in parallel, not in sequence
A single hospital needs a healthcare-establishment licence from its provincial commission, drug sale licences for its pharmacy under the Drugs Act, 1976 framework, DRAP-registered devices in its theatres, and council-registered practitioners on its rosters — issued by four different authorities on four different cycles. No one regulator sees the whole institution, so no one tells you what is missing until an inspection does.
- 02
Negligence exposure arrives through five doors at once
An adverse outcome can produce a complaint to the healthcare commission, a consumer-court claim, a civil damages suit, a criminal FIR against the treating doctor, and disciplinary proceedings before the practitioners' council — simultaneously, from the same facts. Pakistan has no unified medical negligence statute, so the defence has to be coordinated across forums that do not coordinate with each other.
- 03
Consultants who are neither employees nor strangers
The consultant model — senior doctors on revenue shares, admitting privileges and visiting rosters rather than employment — is how Pakistani hospitals actually staff themselves. It blurs vicarious liability when treatment goes wrong, tax and contribution treatment while it goes right, and enforceability when a consultant leaves for the hospital across the road with the patient list.
- 04
Devices and pharmacy sit in DRAP's territory
Since the Medical Devices Rules, 2017, devices require establishment licensing and registration through DRAP, and the transition from an unregulated market is still working through procurement chains. Hospitals buying, and importers selling, unregistered devices carry exposure that surfaces in tenders, audits and — most sharply — in litigation after a device-related injury.
- 05
Patient data with no statute behind it
Pakistan has no general data protection law in force as of mid-2026, and no health-specific privacy statute; confidentiality rests on professional ethics, contract and fragments of general law [PENDING LEGISLATION — TO BE VERIFIED BY REVIEWING LAWYER]. Meanwhile hospitals digitise records, insurers demand data flows, and telehealth platforms operate without a licensing category that fits them.
The Regulators That Matter
Who you answer to — and for what.
- Drug Regulatory Authority of Pakistan (DRAP)
- The federal regulator of therapeutic goods under the DRAP Act, 2012 — licensing manufacture and import, registering drugs and medical devices, and administering price control under the drug pricing policy regime.
- Punjab Healthcare Commission (PHC)
- Licenses and inspects healthcare establishments in Punjab under the PHC Act, 2010, enforces minimum service delivery standards, hears complaints against providers, and runs the anti-quackery campaign. Sindh, KP and Islamabad operate counterpart commissions under their own statutes.
- Pakistan Medical and Dental Council (PM&DC)
- The registration and disciplinary body for doctors and dentists. The regulator has been reconstituted more than once in recent years — PMDC to PMC and back — so the governing statute and rules should be confirmed as current before reliance [TO BE VERIFIED BY REVIEWING LAWYER].
- Provincial drug control organisations
- Provincial inspectors, quality control boards and drug courts administer the Drugs Act, 1976 at retail and institutional level — the licensing and prosecution machinery behind every hospital and community pharmacy.
- SECP and the provincial charities regime
- Hospitals structured as companies answer to the SECP — including not-for-profits licensed under section 42 of the Companies Act, 2017 — while charitable trusts and welfare hospitals in Punjab also face registration under the Punjab Charities Act, 2018.
Mapped Services
The practices this industry draws on.
- Compliance The four-regulator licence map — commission, DRAP, drug control, council — has to be built once and maintained continuously.
- Employment Law Consultant contracts, nursing rosters and house-officer terms each raise distinct classification and liability questions.
- HR Advisory Hospitals run large mixed workforces around the clock; the committees, policies and registrations need building before the first complaint.
- Corporate Law Choosing between for-profit, section 42 and trust structures shapes tax, governance and what an investor or donor can be offered.
- Commercial Contracts Insurer and corporate-panel agreements, equipment purchases and lab outsourcing carry the institution's revenue and its indemnity exposure.
Questions, Answered
What clients in this industry ask.
Most commonly, a complaint to the provincial healthcare commission, which can investigate, fine the establishment and refer practitioners onward — but cannot award the patient compensation. Damages claims go to the consumer courts, whose jurisdiction over medical services has been contested and varies by province [CURRENT CASE LAW — TO BE VERIFIED BY REVIEWING LAWYER], or to a civil suit. In grave cases an FIR is registered. The first 72 hours — records preserved, one spokesperson, early legal assessment — shape all five tracks.
In Punjab, the PHC Act, 2010 reaches healthcare establishments broadly, and the Commission has extended registration and licensing across categories of facilities in phases, including clinics. Where your facility sits in the current phase, and which minimum service delivery standards apply, is checked against the Commission's current notifications as of the date of advice.
There is no single right answer, but there is a wrong one: revenue-sharing arrangements documented as nothing at all. The choice allocates vicarious liability, tax withholding, contribution obligations and enforceability of exit terms. We draft consultant agreements that state the model honestly — privileges, indemnity, insurance, records ownership and what happens on departure — because ambiguity here is what plaintiffs' counsel reads first.
Under the Medical Devices Rules, 2017, an establishment licence for the importer and registration of the devices themselves, with classification driving the pathway. Transitional enforcement has been staged, and requirements have been refined by notification [CURRENT STATUS — TO BE VERIFIED BY REVIEWING LAWYER]. Public tenders and institutional buyers increasingly require proof of registration, so the commercial deadline usually arrives before the regulatory one.
Yes. Private hospitals operate as ordinary companies, and healthcare has drawn private equity interest in Pakistan. The structuring questions are the licence-holder entity, real-estate separation, consultant arrangements that survive diligence, and — for institutions with charitable origins — whether a section 42 company or trust can or should sit in the structure. Converting between models is far harder than choosing correctly at the start.
Criminal process runs on its own timetable and does not wait for medical review. Immediate priorities are competent criminal counsel for the doctor, the institution's own factual record preserved and privileged, engagement with the medico-legal process, and parallel handling of the commission complaint that usually follows. Institutions that prepare a protocol for this in advance protect both the doctor and the hospital better than any response improvised in the first week.
Related Insights
Prepared by The First Counsel · As of 2026-07-12 · Pending professional review — statements flagged in the text are being verified
This publication is provided for general information only. It is not legal advice, and neither reading it nor corresponding with the firm about it creates a lawyer–client relationship. The position stated must be verified against current law before it is relied upon.
