Never fear, the ‘free market’ remains safe

It was a surprise that two private member bills, one sponsored by Aamer Sultan Cheema and the other by Chaudhry Muhammad Asadullah, were passed in the Punjab Assembly on Tuesday.

Especially surprising as Asadullah is an opposition member and there was nary a peep from the treasury bench.

The treasury bench’s ire was saved for the private member resolution tabled by PPP’s Zulfiqar Gondal. Gondal’s resolution, which was ultimately rejected, sought government action over the price difference between generic and brand name drugs. The resolution, its sponsor said, was needed so that centre could remain apprised of the ‘systematic plunder’ by multinational pharmaceutical companies.

Treasury MPAs Sheikh Alauddin and Rana Afzal, however, disagreed. Alauddin claimed he opposed the resolution as it contravened the Federal Drug Act, 1976 which allowed multinationals to set up shop in Pakistan.

The MPA clearly forgot that a private member resolution is only an expression of opinion and not binding legislation.

Afzal’s rallying cry was the defence of the free market. He said any curbs on multinational pharmaceuticals would be detrimental to free market and free enterprise. Regulatory bodies, the MPA needs to be reminded, are formed so that capitalism cannot run amok and people duped in the name of ‘free market’. In Pakistan, acid aminophen, popularly known as paracetemol, is sold as 200 different drugs, priced anywhere between Rs1 to Rs25 per tablet. Diclofenac sodium, a painkiller, is also sold under many brand names, including Dicolaran and Voltran etc. The price ranges from Rs5 to Rs35 for each tablet.

The Food and Drug Administration regulates and monitors drugs in the US. Pharmaceutical companies, in the US, are given patents which give them the time to make a profit before a much cheaper generic drug enters the market. This time lag gives the companies, ostensibly, the opportunity to recoup the investment it has made in terms of research and development.

Not so in our country. Pharmaceuticals package drugs and sell them at high prices, much higher than in India. The strong pharmaceuticals lobby can take a breather. Their job is already being done by our able men in the Punjab Assembly.

Published in The Express Tribune, February 29^th, 2012.