ISLAMABAD, Nov 28: The federal cabinet on Wednesday approved a 3 per cent increase in the prices of essential drugs and a 4 per cent jump in those of decontrolled category.

The cabinet approved the prices of the drugs on the recommendation of the ministry of health.

Federal Health Minister Dr Abdul Malik Kasi told Dawn that the increase in medicine prices was due for quite some time. “The government has increased the prices keeping in view the interests of both the consumers as well as the manufacturers,” he added.

He said the Pharma Bureau, a representative body of drug manufacturers, had been asking for an upward revision in prices due to a rise in utility tariffs, cost of different raw materials and devaluation of the Pakistani currency.

When pointed out that the increase would hit the consumers hard, the minister said the pharmaceutical companies had been demanding a 12 per cent jump in drug prices in keeping with a formula allegedly agreed between them and the previous PML government.

However, the government allowed 3 per cent increase in the controlled category and 4 per cent in the decontrolled one, he said.

The minister, however, declined to comment whether this increase would remain effective for a year or more.

Meanwhile, Dr Inamul Haq, ex-director general health, when asked to comment on the across-the-board raise in drug prices, said it was not justified as there were many raw materials the import prices of which had been increased, but there were many also the prices of which had been decreased.

He said the prices of drugs should be increased on case-to-case basis by calculating the actual impact of the imported inputs and other overheads instead of an across-the-board raise.

He claimed that the profitability in the majority of drugs available in the market was 50 per cent or thereabouts. Therefore, this ad hoc price increase was not justified.