KARACHI: Pakistan’s economy and its people are facing a health crisis. With an economy burdened by high debt and riddled with taxation measures that target the paying sectors, policymaking is seen as being crucial to guide the country out of its perilous path.

However, when it comes to the healthcare and pharmaceutical sectors – an area where developing nations concentrate as they look for sustainable growth – experts rue the lack of attention and inconsistent policymaking.

Additionally, vested interests that have their hands in the smuggling and counterfeit drugs racket have caused additional headaches.

Experts say Pakistan budget massively negative for struggling healthcare sector

In Pakistan, life expectancy is hovering around 67 years, according to the latest Economic Survey, lower than almost all of its peer nations. The average in South Asia stands at 71.6.

A research report, “Healthcare in Pakistan: Navigating Challenges and Building a Brighter Future,” published in 2023 stated the solutions to the “stumbling and compromised healthcare system of Pakistan” are adequate financial support and infrastructure development. The paper also discussed several other challenges the important sector faces in Pakistan.

Arshad Rahim, a former executive associated with the pharmaceutical industry in senior leadership positions, highlighted that Pakistan has one of the lowest health budgets in the world. At less than 2% of GDP, it is lower even in comparison to regional or peer nations.

To give context, Bangladesh allocates 5% of its GDP to health. According to the World Health Organization (WHO), the health budget should be at least 6% of GDP.

Rahim emphasised that the country’s health sector direly needs disease preventive and health promotion measures along with healthier lifestyles.

Rahim also stressed the importance of distributing quality medicines as prescribed by doctors, as was done under the Sehat Sahulat Card, which allowed patients to access medicines through the card.

“It should resume,” he insisted.

Rahim has held several senior leadership positions, including serving as CEO of Wyeth Pakistan. He has also served as a member of the Policy Board at the Drug Regulatory Authority of Pakistan (DRAP).

He emphasised availability of quality medicines as poor quality drugs end up costing patients more.

He concluded that the future of the country depends on a healthy population.

Rahim also pointed out loopholes or leakages in the economy that need to be addressed. The funds saved need to be diverted towards the areas that can bring positive change among people’s lives.

“However, practical solutions must be suggested. Where will this money come from to improve the quality of the health sector? The government should focus on loss-making state-owned enterprises and turn them around.”

Former Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Tauqeer Ul Haq also emphasised the need for the government to focus more on the health sector.

He stated that it is the government’s duty to step up and support the underprivileged sections of society.

The research paper mentioned earlier also said most life-saving medications are too expensive for people to afford.

“(Every) now and then, there is a shortage of medicines in the market,” the paper added.

However, Haq pointed out that there is a need for government intervention.

“The government is giving subsidies for various essentials. There should also be a subsidy for the poor to buy medicines. The government should provide free or at least subsidised medicines through government hospitals,” he said.

He added that the government used to offer such support in the past, but it has now almost been scrapped, with instances of budget lapses.

The industry official suggested that health cards under a government insurance policy should function throughout the country.

The former chairman was also disappointed with the budget, especially seeing that the government increased taxes on various items associated with the health sector.

Many experts point out the importance of the pharmaceutical and healthcare sectors as crucial for tangible as well as intangible benefits. Transfer of skills and technology as well as skilled personnel are all important characteristics of the industry.

However, it is the government’s inconsistent policymaking and high levels of intervention that have forced several players to exit the Pakistan market.

Additionally, it has been argued, Pakistan lacks international agreements and collaborations, limiting its market access and export potential.

Copyright Business Recorder, 2024