KARACHI: Rejecting the recent 20 percent increase in medicines prices allowed by the government, the pharmaceutical industry has demanded the hike should be according to Consumer Price Index (CPI) inflation of 35.5pc.
“We demanded a 40pc 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 the Pakistan Pharmaceutical Manufacturers’ Association (PPMAQ) says.
The decision of price increase was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, presided over by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Friday last.
The ECC approved an increase of up to 20pc in retail prices of general medicines and 14pc for essential ones, prompting immediate criticism from drug manufacturers who termed the increases too small.
During the meeting, the Ministry of National Health Services, Regulations and Coordination presented a summary on increase in the drugs’ maximum retail prices (MRPs) based on the recommendations of the Drug Regulatory Authority of Pakistan (Drap) policy board in the wake of devaluation of the rupee and the rising inflation.
To ensure availability of drugs in the market, the ECC allowed as a one-time dispensation, the manufacturers and importers to increase their existing MRPs of essential drugs equal to 70pc hike in CPI (with a cap of 14pc) and prices of all other drugs, including lower-priced ones an increase up to 70pc in CPI (with a cap of 20pc) on the basis of average CPI for current year ie, 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 the next financial year.
The ECC also asked the Drap policy board to review the situation after three months (in July 2023) and recommend a decrease in the drug prices if the rupee appreciates its value.
