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Kasi hints at hike in drug prices

ISLAMABAD: Federal Health Minister Dr. Abdul Malik Kasi has hinted at increase of drug prices from seven to 10 percent.

Talking to APP here, he said this matter has been referred to the Economic Coordination Committee (ECC) for consideration. He added, after ECC decision drug prices issue will be move to the cabinet for final decision.

About formulation of new price adjustment mechanism on case to case basis, he said, the proposal was discussed but later on dropped on multiple reasons.

He said, "The increase in drug prices is ceased since 1996 despite government agreement to allow price increase on yearly basis."

Pakistan Pharmaceutical Manufacturer Association (PPMA) and Pharma Bureau on umbrella organisation of 24 multinational companies were demanding 40 percent price increase for drugs but the demand was turned down by the ministry recently.

Dr. Kasi said health ministry proposed to give seven to 10 percent increase in the drug prices in order to safeguard consumers which are poor patients. However, he said the drug manufactures are facing economic crunch due to devaluation, inflation and different taxes. He maintained that industry survival is government's top priority.

Drug manufactures claimed in their representation to the health ministry that after 1996 dollar value against Pakistan currency was enhanced 100 percent while devaluation, enhancement in taxes, increase in utility bills, price increase in raw material, fuel and electricity charges increase, excise and customs duty increase minimise the profit margin.

Most of the multi-national and national pharmaceutical industries packed up their investment in Pakistan while other manufacturing plants are facing losses, said the representation.

Health Minister said, "It is true that scenario has been changed due to devaluation, increase in custom, excise duties, Pakistan currency fluctuation and enhancement in utilities bills." He added that drug manufacturers are facing serious problems which should be resolved.

He said Rs 40 billion pharmaceutical trade is shrinking as after 1996 investment in pharmaceutical industry is very slow and trivial.

He said the government is considering to give some relief to the drug manufacturing industry but at the same time national interests including common man interest will be guarded.

Replying to a question, he said government not only resisted price increase in the medicines for the last four years but reduced prices of 75 drugs.

About spurious drugs, he said necessary steps were taken for the first time in Pakistan history to punish spurious drugs manufacturer including award of seven year rigorous imprisonment and Rs 0.5 to 1.5 million fine.

He said government had cancelled dozens of manufacturing license, de-registered many drugs and arrested spurious drug manufacturers during a short span of time.

About shortage of life saving drugs, he said, ministry has taken appropriate steps to check disappearance of essential life saving drugs from the market and its smuggling abroad. APP