Cabinet members chastise drug regulator
Cabinet members have grilled the Drug Regulatory Authority of Pakistan (DRAP) over the lack of transparent mechanism for fixing prices of medicines.
In a recent meeting, they denounced DRAP when the proposal of over 300% increase in prices of medicines was taken up. Several cabinet members expressed concerns, saying that policies of DRAP were not public friendly but were actually profit-centric.
They were of the view that price fixing and regulatory functions had been wrongly merged in the same entity.
The members noted that the drug pricing mechanism was not transparent and emphasised that the pharmaceutical industry had the right to make profit, but it should be fair, and prices should be determined after taking into account all factors, including expert opinion and input costs as well as public interest.
In response, the Ministry of National Health Services, Regulation and Coordination highlighted that the drug price fixing process was complex in which multiple stakeholders were involved, including the federal government, provincial governments, DRAP and the pharmaceutical industry.
Read ECC questions DRAP over pricing policies
It added that the current pricing policy was centered on the pharmaceutical industry rather than focusing on the welfare of citizens.
Responding to a query of a cabinet member, the ministry explained that problems such as spurious drugs and black market were being dealt with firmly.
It acknowledged that drug laws needed amendments to make them more effective. A consensus had been developed that certain measures required the intervention of the Ministry of National Health Services and provincial governments.
These included improvements in drug laws and policy, separation of regulatory and administrative functions of DRAP, availability of essential drugs in the market, in particular the lifesaving drugs, and the use of generic names of drugs rather than patent or trade names.
Following the discussion, there was complete consensus among members of the cabinet that drug prices would not be taken up without conducting a thorough professional and technical analysis, based on fairness and transparency. It was aimed at protecting the public from unreasonable price hikes and providing a conducive environment for the pharmaceutical industry, which would enable it to develop and progress.
They agreed that a fair price incentive for the pharmaceutical industry should also be factored in to ensure sustainable and justified profits, showing a reasonable increase where supported by evidence.
Published in The Express Tribune, December 31st, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.