ISLAMABAD: The Drug Regulatory Authority of Pakistan (DRAP) has been issued notice to justify its controversial decision to increase the prices of medicines seven months ago.

In the notice, the Lahore High Court (LHC) directed DRAP to explain in which capacity its acting head increased the prices in November 2013.

It is pertinent to mention that on November 28, 2013, DRAP increased the prices by 15 per cent. The very next day, however, Prime Minister Nawaz Sharif took notice of the matter and ordered the de-notification of the increase.

Even then, the prices could not be reduced as some companies approached courts and got stay orders and others came up with the justification that the hike in prices was necessary as raw materials had become dearer.

A writ petition was filed with the LHC on June 30, 2014, by the Pakistan Young Pharmacist Association through senior advocate Chaudhry Ijaz Mehmood, who also served as a judge of the drug court in 2011.

The petition, filed with the court of Justice Ameer Bhatti, stated that DRAP had no right to increase the prices of drugs.

After getting the order of the prime minister, DRAP had to ensure that the prices were brought back to the position of November 28, 2013, it added.

Justice Bhatti has sought an explanation from DRAP and fixed July 22 for the hearing of the case.

Advocate Mehmood while talking to Dawn said DRAP was established to ensure the implementation of Drug Act 1976 but after over one-and-a-half years, even a permanent head of DRAP could not be appointed.

“The acting DRAP chief can only deal with the day-to-day affairs but he increased the prices, which was illegal. The prime minister de-notified the increase but even then DRAP did not ensure the reduction of prices,” he said.

An official of DRAP requesting not to be identified said the DRAP management was now confused how to reply to the writ. “If DRAP replies in favour of the price increase, it would be against the November 29 directives of the prime minister. But if it goes in favour of PM’s order, the drug prices would have to be reduced.”

He said DRAP had allegedly asked the Pakistan Pharmaceutical Manufacturers Association and the Pharma Bureau to hire two senior-most lawyers to become party in the writ.

When contacted, the acting CEO of DRAP, Arshad Khan, said in the writ the government through the ministry of health services had been made a party. “So, obviously, the ministry of law and justice will file a reply.”

In reply to a question, Mr Khan said PPMA or Pharma Bureau can become party in the case if they believed that their interest was at stake.

“The law allows everyone to become a party in any case. However, DRAP will defend only that part of the case which is related to it.”

“I have been working as the acting head because so far a permanent head of DRAP could not be appointed. The day a permanent head is appointed, I will start working as the director legal,” he added.

Published in Dawn, July 8th, 2014