ISLAMABAD, Feb 1: Health minister Dr Abdul Malik Kasi on Friday held out an assurance that the government would never give a free hand to the pharmaceutical companies to increase the prices of essential drugs.

The minister during a meeting with German ambassador Dr Chrisltop Brummer said that the federal cabinet had already allowed three and four per cent increases in the prices of controlled and decontrolled drugs respectively.

Citing the examples of different countries, he said that all over the world, the prices of goods and drugs were calculated on the basis of manufacturing cost, research, currency depreciation and tax charges. The situation goes in favour of the manufacturers who are able to produce drugs at a very low cost and pocket huge profits by marketing the product at sky-rocketing prices.

Mr Kasi said the government had to safeguard not only the interests of companies but also the availability of essential drugs for the common man.

Dr Kasi observed that the big, famous companies were charging 10 times more than the smaller companies for same medicines, which, he added, was unjustifiable.

About the budgetary allocations for health and education, the minister said the government had put aside Rs2 billion for these sectors. However, he conceded that Pakistan allocated 0.5 per cent of its GDP on health whereas Germany earmarked as much as seven per cent of its GDP for health and education.

He said allocation of more funds would help in checking the morbidity and mortality of mother and child. The minister was all praises for German pharmaceutical companies which, he said, produced quality drugs at reasonable prices.

He pointed out that a wider sale of products at competitive prices could yield more profits than a limited sale at a higher price.