ISLAMABAD, Oct 12: The pharmaceutical industry has given an undertaking to the government that it will not increase prices of medicines for the next 12 months.

The two sides had agreed on September 28 that efforts would be made to reduce prices, a move apparently aimed at proving that deregulation would not result in price spiral.

An official source told Dawn that voluntary announcement by a few pharmaceutical manufacturers, associated with the pharma bureau, to reduce prices was made soon after this meeting.

If the government did not announce a general increase under special circumstances, prices would either stay where they were now or be decreased in the next 12 months, the source said.

However, the source could not answer as to what percentage the prices would be reduced or whether prices would not be increased after the condition of one year.

He said prices would be reduced after informing the Ministry of Industries in writing. However, the pharmaceutical industries are entitled to increase prices of their medicinal products to the current level without seeking prior approval.

Necessary SRO in this regard will be issued by the government in due course of time, but the industry has been allowed either to wait for such a notification or reduce prices on the basis of an understanding reached during the meeting.

It was decided during the meeting that the current approved price levels of each drug would not be increased by pharmaceutical industries. It was also decided that efforts should be made to increase exports of medicines.

The government side informed the representatives of the pharmaceutical industries that local companies involved in research and development activities would be entitled to get financial support from the R&D technology development funds under the control of the Ministry of Science and Technology. It was decided that the Industries Ministry would closely work with the pharmaceutical industry to ensure implementation of the announced policy for the pharmaceutical sector.

The new industrial policy suggested that prices of all drugs would be controlled and there would only be one list of drugs. Besides, prices of the registered drugs will be regulated by the Ministry of Industries and all medicines which have to be registered for the first time will be registered and their prices fixed by the health ministry.