ISLAMABAD, July 16: The federal government on Wednesday blocked a proposal for allowing import of 400 medicines from India, ahead of an imminent rise of up to 40 per cent in prices of life-saving drugs.

The proposal was forwarded by the Commerce Ministry.

Prime Minister Yousuf Raza Gilani is reported to have directed that no drug produced in the country should be imported.

Mr Gilani, the sources said, sought justification for importing 13 vaccines and some oncology drugs from India, which are currently not being produced in the country. But their import would continue.

Federal Health Secretary Mr Khushnood Lashari has asked to meet Commerce Secretary Mr Asif Shah to ensure that the proposal for importing Indian drugs was closed.

Sources in the commerce ministry had leaked information about the move to import Indian drugs to the pharmaceutical industry and local producers used their contacts to pre-empt it.

Local entrepreneurs contend that the move would threaten jobs of more than one million people, affect annual exports worth more than $120 million and compromise the availability of medicines during emergencies.

The country’s pharmaceutical industry is worth Rs83 billion and enjoys considerable political clout.

Meanwhile, the health ministry’s advisory committee on drug prices has recommended a 10 to 40 per cent increase in prices of various life-saving drugs.

The committee had been asked to examine the pharmaceutical industry’s requests for price increase.

The pharmaceutical industry had been pressing for a 20-25 per cent across-the-board increase, but the proposal was rejected. The last across-the-board price increase was allowed in 2001.

Another meeting of the committee, the sources said, was likely to be convened soon to ‘fast track’ the proposal for increase in prices of more than 300 essential drugs.