Drug price increase: Punitive steps for violators proposed

Draft of law in place to counter drug price hike

Strict punitive measures have been proposed for violators of National Drug Pricing Policy. Draft of a law is being prepared in this regard, an official told The Express Tribune on Thursday.

The draft  was presented to a parliamentary panel by the Ministry of National Health Services, Regulations and Coordination here on Wednesday.

According to the proposed law, violators will face confinement and fines of up to Rs100 million and three years of imprisonment for manufacturers who would increase the price on their own.

A fine of up to 10 million rupees for distributors and two years of confinement has been proposed for those violating the policy.

Secretary of the ministry Dr Ayub Sheikh briefed the Senate Standing Committee that met under the chair of Senator Sajjad Hussain Turi.

Turi said that companies not following the set formulae for the increase would face action.

He added that the proposed draft would be sent to the prime minister for approval soon.

The secretary said that more than 300 companies had increased the prices of drugs and the ministry could not take action as the cases were sub-judice.

Senator Turi added that since the notification of drug prices increase, as per the drug policy at least five companies had written to the authority to increase the prices.

Since the Drug Pricing Policy was announced in February 2015 and had come into effect from July, which provides a method for the annual increase in the prices of drugs according to the Consumer Price Index.

The secretary also informed that spurious drugs were being smuggled from three countries; China, India and Afghanistan.

The ministry is taking steps in collaboration with the concerned departments to end the smuggling, he said.

Published in The Express Tribune, August 5^th, 2016.