Pharma sector rejects govt’s move, demands 40pc hike in drug prices

KARACHI: The pharmaceutical industry has rejected government’s move of increasing drugs prices by 20 percent, demanding prices increase as per Consumer Price Index (CPI) inflation of 35.5 percent.

“We demanded 40 percent increase as per inflation rate in the country; otherwise the industry would be left with no other option but to close its operations,” Dr Kaiser Waheed of Pakistan Pharmaceutical Manufacturers’ Association (PPMAQ) told this correspondent.

The decision of price increase was taken at a meeting of Economic Coordination Committee (ECC) of the Cabinet, presided over by federal minister for finance and revenue Senator Mohammad Ishaq Dar on Friday.

The ECC approved an increase of up to 20% in retail prices of general medicines and 14% for essential ones, prompting immediate criticism from drug manufacturers who said the increases were too small.

During the meeting, Ministry of National Health Services, Regulations and Coordination presented a summary on increase in maximum retail prices of drugs based on the recommendations of Policy Board of DRAP in the wake of devaluation of Pak Rupee and inflation.

To ensure continuous availability of drugs in the market, the ECC allowed as a one-time dispensation, allowed manufacturers and importers to increase their existing MRPs of essential drugs equal to 70% increase in CPI (with a cap of 14%) and MRPs of all other drugs and lower priced drugs an increase up to 70% in CPI (with a cap of 20%) on the basis of average CPI for current year, i.e., 1st July, 2022 to 1st April, 2023 with condition that it should be considered as annual increase for the financial year 2023-24 and no increase under this category will be granted in next financial year.

The ECC further advised the Policy Board to review the situation after three months, i.e., in July 2023 and make its recommendations to the Federal Govt regarding price decrease if Pak rupee appreciates its value.

Copyright Business Recorder, 2023