Drug price increase

Published March 31, 2014

REVISION in the prices of drugs in Pakistan has been hotly debated for sometime now. Pharmaceutical companies have been arguing a price increase is long overdue and in November last year they said an 18pc increase in the price of many medicines was imminent. The impression gathered at the time was that the government was ready for a compromise, on two conditions. One, the government wanted the makers to shortlist drugs for the increase. Two, the government insisted on a 15pc rise at the most. Finally, on Nov 28, 2013, the Drug Regulatory Authority of Pakistan notified a price increase of 15pc on a number of drugs, excluding those categorised as life-saving. The hike was criticised as a cruel blow to Pakistanis who were already struggling in the face of high inflation. An immediate withdrawal of the increase was demanded and the call was heeded by Prime Minister Nawaz Sharif, on whose direction Drap withdrew its notification only a day after its issuance.

Everyone knew this was not the end of the drive for price increase. The pharmaceutical companies were determined to pursue their case further and four months down, reports now say prices of a large number of drugs, including life-saving ones, have been increased in one leap by an average 30pc. The sharp rise has been pointed out by an organisation called the Young Pharmacists Association. Some established drug companies say they have never heard of the YPA and question the given figures. It is also said in some cases the increase is a result of a Sindh High Court ruling which had stayed the withdrawal of the notification issued by Drap last November. In any event, the matter is once again before the government and the pharmaceutical industry is soliciting the prime minister’s involvement for price rationalisation. Given the intensity of the lobbying and that ways have already been found to up the prices of some if not all drugs, this is a difficult one for the government and it could end up conceding some ground to the drug makers. The question is what price compromise is finally agreed to, and just how big a drain it will be on the people’s pocket.

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.