Prices of life-saving drugs jacked up by 14%

DRAP increases rates of all other medicines by 20%

ISLAMABAD:

The Drug Regulatory Authority of Pakistan (DRAP) on Friday notified a 14% to 20% increase in the prices of various medicines, including life-saving ones, following approval by the Economic Advisory Committee of the Cabinet last month.

According to the notification, signed by the national health services ministry’s legal affairs deputy director, the prices of life-saving medicines were increased by 14%.

The prices of all other medicines were jacked up by 20%.

“It [increase] shall be considered as annual increase under the said policy for financial year 2023-24 and no increase under this category shall be granted in [the] next financial year,” read the notification.

It added that the increase in the prices was approved by the Economic Advisory Committee of the Cabinet on April 14 this year.

The notification read that the DRAP’s policy board would review the pricing after three months, i.e. in July and make its recommendations to the federal government for its consideration for a decrease in rates, if the local currency appreciated in value.

“As a one-time dispensation, enabling manufacturers and importers to increase their existing MRPs [maximum retail prices] of essential drugs and biologicals (excluding lower priced) equal to 70% increase in CPI [Consumer Price Index] (with a cap of 14%) and NfRPs of all other drugs and biologicals and lower priced drugs up to increase in CPI (with a cap of 20%) on the basis of average CPI for current year i.e. the 1st day of July, 2022 to the 1st day of April 2023,” it read.

It further stated that hardship cases that had been recommended by the Drug Pricing Committee and were under submission for approval by the federal government would be reviewed for adjustment.

“The revised maximum retail prices shall be printed on the label in the manner prescribed by the Drugs (Labeling and Packing) Rules, 1986 and manufacturers and importers of drugs and biologicals shall, before affecting increase, furnish calculations of revised maximum retail prices of drugs and biologicals to the Division of Costing and Pricing of the Drug Regulatory Authority of Pakistan,” it concluded.

The decision was due for months to meet the demands of drug importers and manufacturers, whose associations wanted an across-the-board 39% increase in prices.

They had warned that the country’s medicine industry could collapse if the prices remained unchanged.