Low medicine prices may lead to shortages

RECORDER REPORT

ISLAMABAD: Prices of 92 medicines/drugs have been reduced which would create a severe shortage in the local market, causing serious problems for the patients.

The Ministry of National Regulations and Services has issued a notification to substantially reduce the price of 92 drugs across the country that is likely to result in shortage of these drugs in the domestic market within the next few weeks.

Well-informed sources told this scribe that the newly established Ministry of National Regulations and Services issued a notification on July 17 to substantially reduce the price of 92 drugs across the country even to the extent of 400 percent in some cases despite the fact that the cost of inputs used in the manufacturing of the medicines is increasing with each passing day. Not only has the cost of the material gone up but so has electricity tariff, they said.

“Along with high price of inputs used in manufacturing of the medicines, the pharmaceutical companies have to pay taxes at the input stage as well, whereas the burden of the taxes paid at a later stage can not be recovered from the consumers,” sources added.

“Due to rising cost of production and reduction in the retail price of the medicines, most of the products are likely to be short supply in the domestic market in the next few weeks”, sources said.

Ministry of National Regulations and Services had already directed ten local pharmaceutical companies to reduce the price of medicines they had raised soon after the devolution of health ministry under the 18th Amendment.

“These pharmaceutical companies had received a stay order from Lahore High Court to maintain the price increase but the Lahore High Court disposed of the case on April 26 while directing these pharmaceutical companies to approach the pricing board of Drug Regulatory Agency of Pakistan (DRAP) to resolve the issue of pricing of the drugs”, sources revealed.