Pakistan Pharmaceutical Manufacturers' Association (PPMA) Chairman Mansoor Dilawar said that around 40 to 50 medicines are in short supply, and the number would soon cross 100.
Dilawar told Business Recorder that over 40 life-saving drugs are not available after the pharma industry decided not to import raw materials because of GST imposition.
The medicines short in the market include Alp tablets used for anti-depression, Dexamethasone for asthma, cancer, and joint pain, Epitab for epilepsy, Nervin for depression, Epival, Fexet D, Nitronal, Ventoline tablets, and injections.
Moreover, Epival In, Myrin P, Ketasol Inj, Loprin, Silver tab, phenergen Elixir, Tixylix Lincitilus, Chlooriptics Drops, systane drops, Rivotril drops, Dormicum tablets, Winstor, Tritace, Sodamint, Schazobutil, Jardymet, and Brufen are reportedly short in the market.
Drugs: manufacturers demand increase in MRP, abolition of sales tax
Lomotil, Panadol, Tan Primolut B, Progynova, Stilnix, Glucobay, Zentel, Avor, Gravibinan, Syp Gaviscon, Lipofundin, and Sorbid Injection are also not available.
The PPMA chairman said that the industry was suspending production of low-margin items after the Federal Board of Revenue (FBR) imposed taxes that jacked up the industry’s cost of production by Rs60 billion to Rs70 billion.
“Pharma industry cannot pass on the higher cost of production to consumers because there is a cap on drug prices,” he said.
“So, the industry has been forced to suspend production of low-margin medicines, which have become un-viable after an increase in taxes,” Dilawar added.
Dilawar said that the industry is paying 17% refundable GST at the import stage.
"There's a non-refundable 1% tax on raw materials. And then the government has imposed a 1% on the sale of medicines. This will force the industry to pay taxes of Rs60 billion to Rs70 billion annually."
A few days ago, the PPMA chairman said that the pharmaceutical industry is awaiting sales tax refunds of Rs40 billion since January 16, 2022. However, the FBR has denied that there were any refunds stuck with the tax authority.
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