ISLAMABAD: The government of Pakistan has approved a hike of up to 20% in the prices of medicines, with the increase in prices for essential drugs being capped at 14%, in the face of high inflation rates that the country has been facing for decades.
The Economic Coordination Committee (ECC) of the cabinet made the decision to approve the hike to meet the demands of drug importers and manufacturers. These associations had been calling for an across-the-board 39% increase, warning that the industry could collapse without it.
The finance ministry noted that the prices could be reviewed again after three months if the rupee appreciated, but that no increase under this category would be granted in the next financial year. The Pakistan Pharmaceutical Manufacturing Association has criticized the increase, stating that it was way lower than they had expected.
The inflation reached 35 percent in the last month due to the currency fallout, the rollback of subsidies to get the $1.1 billion loan from the International Monetary Fund.
Food inflation has also risen to more than 47%, with even the wealthier class facing challenges due to the rising prices. The disagreement between the pharmaceutical industry and the health ministry has led to an acute shortage of critical medicines, pushing patients towards smuggled and potentially counterfeit drugs at increased costs.
The government’s refusal to grant the demands for an increase in drug prices had led to pharmaceutical companies either stopping or going into a limited-scale production of scores of essential and non-essential medicines.
