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.

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