Drug prices jacked up to 100 pc amid severe shortage of life-saving medicines

Almost all multinational and local companies in the country within a year increased the prices from 50% to 100% without obtaining approval from the Drug Regulatory Authority of Pakistan (DRAP). The Regulatory Authority remained unaware of this huge increase in drug prices for a considerable time

The surge in medicine prices usually comes at a time when people are grappling with a severe shortage of life-saving drugs. This shortage also leads to the influx of smuggled medications into the market, forcing patients to pay three to five times higher prices for essential medicines than their actual rates

It is bad news to the masses that the caretaker Federal Cabinet headed by the interim Prime Minister, has approved increased prices of 146 essential life-saving medicines. This decision has generated huge resentment in the nation. The decision, reportedly proposed by the Ministry of National Health, cited the rising costs of raw materials in the global market as the driving force behind the surge in medicine prices.

Almost all multinational and local companies in the country within a year increased the prices from 50% to 100% without obtaining approval from the Drug Regulatory Authority of Pakistan (DRAP). The Regulatory Authority remained unaware of such huge increases in the prices of drugs for a considerable time.

The prices of medicines in Pakistan are regulated by DRAP, which means pharmaceutical companies cannot increase rates unless the Authority gives them a go-ahead. National Drug Pricing Policy 2018 empowered DRAP to adopt extraordinary steps to overcome unusual economic circumstances in the country to ensure the availability of essential medicines in the market.

During the Cabinet meeting, Prime Minister AnwaarulHaqKakar reiterated the government’s commitment to ensure the availability of medicines to the general public at reasonable prices. He highlighted the dual objective of benefiting the common man as well as supporting the pharmaceutical industry through strategic policies.

The surge in medicine prices usually comes at a time when people are grappling with a severe shortage of life-saving drugs. This shortage also leads to the influx of smuggled medications into the market, forcing patients to pay three to five times higher prices for essential medicines than their actual rates.

Prime Minister, addressing the drug shortage issue, directed the Authority to make efforts to improve its performance and expedite action against hoarding and drug smuggling. Addressing concerns about the deregulation of drug prices, he instructed the preparation of recommendations for a draft summary in this regard to enable the next elected parliament to legislate about it.

The decision to increase medicine prices has not been well-received by the public, particularly considering the ongoing shortage of essential drugs and already skyrocketing prices of medicines. Citizens are showing resentment over the escalating costs, which is sure to pose new financial challenges for those battling severe diseases.

One of the key concerns raised during the meeting was the verbal clash between caretaker Health Minister DrNadeem Jan and the Pakistan Pharmaceutical Manufacturers Association (PPMA) over the review of prices for 262 drugs categorized as hardship cases. Despite DRAP’s approval of proposed prices in November 2022, the matter remained pending as the caretaker Health Minister deferred the decision until the next elected government.

The PPMA has expressed significant concern, deeming the delay potentially hazardous to individuals battling severe diseases as well as detrimental to the overall health of the pharmaceutical industry. The clash between the health ministry and the pharmaceutical association has added fuel to the already intense debate surrounding the pricing of life-saving medicines.

In an attempt to address the grievances of the public, both the Health Ministry and Drap have informed citizens that they can file complaints regarding the non-availability of medicines through the authority’s online portal. This move aims to create a channel for the public to voice their concerns and hold accountable those responsible who failed to ensure the accessibility of essential medicines.

The nation is combating the complex interplay of rising global raw material costs, a shortage of life-saving drugs, and the contentious decision to increase medicine prices.

The government’s commitment to formulating policies that balance the needs of the common man and the pharmaceutical industry will undoubtedly face increased scrutiny in the coming days, especially as the nation navigates through this challenging healthcare landscape.

A couple of weeks ago, the Chairman Pakistan Pharmaceutical Manufacturers Association (PPMA) Mian Khalid Misbah-ur-Rehman said that conducive policies, fair pricing mechanisms, and investment in research and development are crucial for the growth of the pharmaceutical sector to meet domestic demand and a sustainable increase in exports to different countries.

Khalid Misbah said this at the inaugural session of the 20th Pharma Asia Exhibition and Conference organised by Ecommerce Gateway Pakistan.

Speaking as a chief guest, he said the continuation of policies is essential to protect the life-saving sector, which had increased its productivity despite challenges and the high cost of doing business.

He urged the pharmaceutical companies to bring efficiency to their system to offset the issue of high inflation, Rupee devaluation, high packaging cost, etc.

Khalid asked the pharmaceutical companies to focus on human resources to sustain their business growth effectively.

PPMA chairman added that the pharmaceutical companies in Pakistan produce medicines at an international standard; hence, they can explore exports in different countries to bring foreign exchange to the country.

The event hosted various seminars on the issues of pharmaceutical industries which were addressed by Chairman PPMA South, President & CEO of Medisure Laboratories, Sheikh Kaiser Waheed, Managing Director of Sante (Pvt.) Ltd., TauqeerulHaq, Managing Director & CEO Martin Dow, Javed Ghulam Mohammad, President Ecommerce Gateway, DrKhursheedNizam and Vice President Pharma Asia, FarhanAnis.

Pakistan’s pharmaceutical industry is a significant contributor to the economy, with an estimated value of USD 3.2 billion and a growth rate of around 15% annually. The industry comprises over 700 manufacturing units and employs a large workforce. It is primarily focused on generic drugs, catering to a vast domestic market and exporting to over 60 countries.

The industry holds immense potential for further growth and expansion, but it must address challenges such as improving infrastructure, enhancing research and development capabilities, and strengthening intellectual property rights protection.

With 650 stalls, the exhibition promises an extensive showcase of cutting-edge products, services, and innovations. This year’s event boasts participation from more than 160 international representatives from China, Turkey, Vietnam, the UK, Germany and Malaysia, which further solidifies Pharma Asia’s status as a globally recognized platform for the pharmaceutical industry.