Former Chairman Pakistan Pharmaceutical Manufacturing Association (Sindh/Balochistan) and former Chairman FPCCI Standing Committee on Pharmaceutical & Science and Technology, Dr Mushtaq Noorwala has urged the federal finance minister to exempt imports of all lifesaving pharmaceutical and surgical equipment from levy of 10 percent flood surcharge.
He said that it came to his knowledge through the news item, which appeared in a section of the press that the government was considering imposing 10 percent surcharge on imports of lifesaving drugs and surgical equipment to generate revenue to deal with the post flood situation in the country.
These measures to generate revenue on the direction of IMF without analysing the impact on the national economy would not only create problems for the poor masses but also increase cost of doing business substantially. Under such circumstances it was suggested to curtail non- development and other expenses. Decision of levying 10 percent flood surcharge on all imports, if taken by the government would hit the business community hard.
Dr Noorwala also drew the finance minister's attention towards the most pertinent fact that pharmaceutical and healthcare product, both imported and locally manufactured have always been exempted in the past by the subsequent government from any such levy, that has been imposed in time of emergency situations, simply because of all the restraints that the importers and manufacturers are working under and more so in the interest of keeping a continuous and smooth supply of the products for the ailing patient.
All pharmaceutical products, whether locally produced or imported are registered by the Ministry of Health (MOH), and their Maximum Retail Prices (MRPs) are also fixed by the MOH be it importers or local manufacturers of pharmaceutical products both of them are bound by law not to increase MRPs of their products at will.
It is worth mentioning here that there is no real basic industry in Pakistan that produces raw material for the local manufacturing sector. Hence the input raw material used in manufacturing even the most basic medication are to be imported and industry is dependent totally on import.
The MOH has been extremely cautious and also dependent in allowing price increases over the years to already registered products. The last price increase across the board was allowed in 2001, after which no real price increases have been allowed for products registered prior to 2001. The massive devaluation of the Pakistani Rupee, astronomical rise in the cost of living due to inflation, periodic rise in the prices of finished products and raw materials being imported, etc, have been totally ignored by the MOH and related authorities.
Whilst there has been a regular correction and timely indexation in the prices of all other commodities, local agricultural produce, petroleum products various locally manufactured and imported products of daily use etc, the pharmaceutical sector has been totally ignored.
It is not like this that this sector is comfortable enough and is unaffected by devaluation of our currency, inflationary factors or financial cost etc. Simply because there is a price control measure enforced by the MOH, pricing for members of the pharmaceutical manufacturing and import sector is totally inflexible and are not considered for years together. At this juncture, any further rise in the cost of imported finished products or raw materials will be totally disastrous for the stakeholders.