Drug industry wants 18pc price hike

Published November 19, 2013
— File photo
— File photo

ISLAMABAD: The pharmaceutical industry plans to increase the prices of all registered drugs by up to 18 per cent.

In the absence of a national drug pricing policy, the manufacturers claim the increase has been allowed by the federal government.

“We have asked our members to prepare a list of drugs with increase for submission to the Drug Regulatory Authority,” the Pakistan Pharmaceutical Manufacturers’ Association’s secretary general Khawaja Javed Akbar told Dawn on Monday.

He said the list would be submitted to the government and the new prices would later be printed on the products.

Mr Akbar termed the 18 per cent increase ‘meagre’ in comparison with the calculation made by the Drug Regulatory Authority of Pakistan (DRAP). He said the formula for price increase had been approved by the Economic Coordination Committee of the cabinet.

The manufacturers have held three meetings with the government since Oct 23 and they had largely remained inconclusive.

A meeting of the pharmaceutical association with the ministry of national health services, regulations and coordination on Monday also failed to reach an agreement over the price increase.

The government, according to sources, sought 10 days to announce an increase in the prices of registered drugs.

They said the government was willing to allow a 15pc increase, but it was not acceptable to the drug manufacturers. Punjab was opposing an increase of more than 15pc, the sources added.

The association’s general secretary said the drug manufacturers would not accept an increase of less than 18pc.

“We will go on strike if the government harasses any drug manufacturer,” Mr Akbar said.

He accused the government of backtracking from its commitment.

The association had earlier sought a 50pc increase in the prices.

The industry’s representatives claim that it would not be feasible for them to keep manufacturing life-saving medicines without an increase in prices.

However, the sources said the manufacturers wanted to earn billions of rupees from drugs used for common ailments like flu, fever, malaria and diarrhoea.

In a letter sent to the national health ministry’s secretary on Nov 11, the association also called for immediate finalisation of a drug pricing policy.

The draft policy was presented to the DRAP’s policy board, but has yet to be finalised.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...
Saudi FM’s visit
Updated 17 Apr, 2024

Saudi FM’s visit

The government of Shehbaz Sharif will have to manage a delicate balancing act with Pakistan’s traditional Saudi allies and its Iranian neighbours.
Dharna inquiry
17 Apr, 2024

Dharna inquiry

THE Supreme Court-sanctioned inquiry into the infamous Faizabad dharna of 2017 has turned out to be a damp squib. A...
Future energy
17 Apr, 2024

Future energy

PRIME MINISTER Shehbaz Sharif’s recent directive to the energy sector to curtail Pakistan’s staggering $27bn oil...