Earlier, pharmaceutical companies had expressed their concern at working with capped prices. PHOTO: FILE
Prime Minister Nawaz Sharif on Friday took notice of the increase in prices of drugs and medicines and decided to retract the increase immediately, said a spokesperson of the Prime Minister's Office.
The spokesperson said that the premier had termed the price raise as unacceptable and directed that prices of drugs should remain unchanged.
He said that the increase in price of medicines has been withdrawn with immediate effect and a notification has also been issued in this regard.
An inquiry has also been ordered to determine why the hike was approved.
Earlier, pharmaceutical companies had expressed their concern at working with capped prices.
“This is also a political government and we won’t put any undue pressure because public reaction could be harsh. But right now, it has become really difficult for us to operate," Nasir Javaid, chairman Pakistan Pharmaceutical Manufacturers Association (PPMA) had said.
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This is very irrational decision by PML-N’s Nawaz Sharif. He didn’t know the ground realities. Price hike for medicine are stopped since 2001 and Pharmaceutical sector in Pakistan suffering from severe loss. People have to understand this is business and business needs Profits. Low profits mean low quality medicine because local pharmaceutical companies will not able to made quality products due this price issue on the other hands Multinationals companies are leaving Pakistan and prices for medicine which are manufactured by multinationals are already high. Another critical problem is shortages of drugs and in the end of the day we will have to buy expensive medicine from abroad at the time of crisis. People accept price hike on petrol, electricity, FMCG’s Product on daily basis but create chaos on hike in price for medicines. Our Neighboring country India has strong Regulatory structure and define pricing mechanism and look where India stands in Pharma market. If government will not take any serious action in this regard there will be consequences leads to death of this Pharma sector.
@Xnain: You are correct. Apparently the prices have not been increased since 2001 leading to exit of 4. Multinationals and closure of several local drug firms according to this Dawn article. http://dawn.com/news/1051682/no-decision-on-price-hike-irks-pharma-industry
Furthermore the 15% increase had only been approved for those drugs that were not considered life saving and which had seen no price increase since 2001.
So it is understandable that there would be shortage as you mentioned.
India exports inexpensive drugs to the whole world but importing pharmaceuticals from India is not legal in Pakistan. So due to these shortages, doctors prescribe these medicines illegally. http://tribune.com.pk/story/638508/made-in-india-drug-shortage-compels-doctors-to-prescribe-smuggled-cancer-medicines/
As can be expected when drugs come illegally their quality cannot be assured because conditions for maintaining drug effectiveness such as refrigeration cannot be provided in smuggled goods.
Either the prices should be such that manufacture is profitable in he country or import from India should be legalized. The current situation needlessly puts people's health at risk.
Apparently the price of drugs have been frozen since 2001 resulting in exit of 4 multinational companies and closure of several domestic pharmaceutical companies according o the Dawn article. http://dawn.com/news/1051682/no-decision-on-price-hike-irks-pharma-industry
The resulting shortage coupled with lack of MFN status to India where cheap pharmaceuticals could be imported legally has resulted in illegal importing of medicines. http://tribune.com.pk/story/638508/made-in-india-drug-shortage-compels-doctors-to-prescribe-smuggled-cancer-medicines/ While life of people is more mportant than these stupid political games - either the PM should allow the drug manufacturing to remain profitable in Pakistan so that people have access to drugs. Alternatively it should allow legal import from India which supplies cheap medicines o the whole world. When medicines are illegally imported, quality cannot be assured because the conditions for medicines to be effective e.g. Refrigeration cannot be provided.
Yes, and Nawaz should also "order" OPEC to lower the price of oil sold to Pakistan back to $10 per barrel!!! That will solve all the countries energy problems and circular debt issues!
@Theologist: The prices of medicine are paid on the MRP, they are not the commodities like vegetables. @The Failed Rebel: FYI the prices of drugs haven't been increased in Pakistan for last 8-9 years and many international drug manufacturers have left Pakistan because of shrinking margins. If the prices are deliberately kept low, the incentive to produce would decreased resulting in drug shortages. If you go to any drug store many important medicine have vanished of the shelf.
@Theologist: These are dramas buddy. PML-N will never work for the common man. They were elected by elite, for the elite. I hope the new COAS, imposes a brutal martial law and annihilates the economic and political monarchies in Pakistan. Especially Zardaris/Sharifs/Chaudhrys.
What kind of drama is this? First they push prices up, and then take it back. Retailers keep charging the inflated prices because they go "back to the future".