Parliamentary secretary seeks to justify increase in drug prices

The National Assembly was informed on Monday that the government increased retail prices of medicines determined under hardship category by nine percent while prices of other drugs were raised by 15 percent over and above the existing maximum retail prices under the Drug Pricing Policy, 2018.

Responding to a question during the question hour, Parliamentary Secretary for National Health Services Nausheen Hamid said that the federal government had approved the list of medicines whose prices had been increased under hardship category.

The reasons for increase in prices of drugs were 28 percent depreciation of Pakistani rupee in 2018, rise in prices of raw materials and packaging materials of drugs in China due to closure of plants on account of environmental reasons, she added.

She said these reasons affected the availability of medicines and vaccines in the country, adding the federal government and Drug Regulatory Authority of Pakistan (DRAP) allowed increase in prices of drugs to ensure availability of life-saving medicines in the market.

She said since July 01, 2016 annual increase in maximum retail prices of drugs has been linked with Consumer Price Index under drug pricing policy which was notified after approval of the federal government.

In July 2019, pharmaceutical companies availed increase in prices by 7.34 percent for the financial year on basis of CPI. Prices of essential drugs rose by 5.13 percent and prices of other than essential and lower priced drugs increased by 7.34 percent.

She said the cabinet approved the Drug Pricing Policy which determined the prices of medicines, adding the pharmaceutical companies went to the Supreme Court against the government's decision to set prices.

She said the government is taking the issue of polio seriously and the ministry has nominated a strategic advisory board to deal with the disease.

March and April were important months to identify dengue larva and an action plan was prepared to deal with the epidemic, she added.

She said health is a provincial subject as it has been devolved to the provinces. She said there is shortage of doctors and paramedic staff in Polyclinic Hospital, Islamabad, and the government has plans to recruit more staff.

She said the project of extension of Polyclinic Hospital has not been dropped.

Capital Development Authority (CDA) is in the process of allotment of 12 acres of land in sector D-12. The government has already allocated Rs 47.896 million for the feasibility study of Federal Government Polyclinic extension.

She said the emergency of the Polyclinic was upgraded and extended and latest facilities are being provided.

The secretary said population growth is the biggest problem of the country. In 2017, Pakistan was the 6th most populous country in the world. According to Housing and Population Census Report 2017, Pakistan's population was 208.7 millions with population growth rate of 2.4 percent per annum, she added.

She said Federal Task Force on Population has been notified and its meeting is scheduled to be held on December 11 depending on the availability of chief minister.

She said the task force would approve Rs 10 billion and after its allocation by the Finance Ministry, an action plan on population would be implemented.

The Supreme Court of Pakistan had taken a suo motu notice in July 2018 on alarming population growth and it constituted task force to frame recommendations to control high population growth rate in Pakistan.

The set of recommendations endorsed by the Supreme Court was later approved by the Council of Common Interests (CII) in its meeting held in November 2018, she added.