Background & Functions
Background
Established by the Health Department on 1st July 1996 by re-designation of the Medicine Store Depot (MSD), under PAC resolution vide notification No. SOH(V)9-5/96/MCC dated 16.5.1996.
- • A single, one-time tender by the provincial government for drugs and medicines
- • A consolidated formulary adopted for item selection
Functions
- • Contract framework agreement for quality, cost-effective drugs, surgical tools, consumables, and supplies
- • Formulary based on the WHO Essential Medicines List, Pakistan National Formulary, and hospital demand
- • Saves billions of Rupees for the exchequer every fiscal year
Procurement Steps Under KPPRA Rules & Act
Notify committees
T&E / SRCC committees
Preparation of Bidding Documents by team of Experts
Tender advertisement & Prebid meeting for bids
Receive & evaluate bids; physical inspection & end-user review
Financial bid evaluation & comparative statement
SRCC approval of rates
Contract agreement, MCC list circulated to all health facilities
MCC Cost Savings — 5-Year Trend
Annual Savings on Medicines & Surgical Disposables (PKR Bn)
Overall savings on drug purchases (MRP – Trade Price), benchmarked against preceding-year quantities × approved rate
Rates ran 325% above preceding-year prices, resulting in a significant loss to the exchequer — excluded from the savings trend above.
Discount range observed: 15% (minimum) to 96% (maximum) below market retail price across selected items in recent procurement cycles.