Pharma industry forced to slash prices

KARACHI: Pakistan Pharmaceutical Manufacturers’ Association (PPMA) announced to decrease the prices of 395 essential medicines along with 464 medicines voluntarily by 10 to 15 per cent in order to provide due economic relief to masses.

Zahid Saeed, Chairman PPMA announcing the decision of the industry said that prices of 395 essential medicines are being reduced from one per cent to 471 per cent as per government’s SRO no. 1610 and within 15 days, these medicines would be available on reduced prices throughout Pakistan.

Accompanied by Ayesha Tammy Haq, the representative from Pharma Bureau in Pakistan and in the presence of several drug manufacturers, PPMA Chairman said they were forced to lower down the prices of medicines on the pressure from the Health Minister Amir Kayani as well as Commerce Advisor Abdul Razzaq Dawood even though continuous increase in cost of production of medicines had made doing business very difficult in Pakistan.

At the same time, the pharmaceutical industry has voluntarily decided to lower the prices of another 464 medicines by 10-15 per cent and providing it to the people on their original cost of production, PPMA chairman announced, saying medicines whose prices were being reduced were very well known and commonly used medicines for the treatment of communicable as well as non-communicable diseases.

Recently, the government of Pakistan allowed an increase in prices of around 45,000 medicines by 15 per cent following a suo moto taken by the Supreme Court of Pakistan but in some hardship cases, prices of 464 medicines were increased over 15 per cent because their cost of production had become unbearable for the industry and production of many of these drugs had been stopped by the pharmaceutical manufacturers.

“It is very painful and challenging decision for the pharmaceutical industry since hardship cases were decided in Nov 2018 when rupee valued at 138 against the US dollar. Today it is 143”, Zahid Saeed said, adding that continuation of these prices is possible if the dollar does not appreciate, utility prices are maintained and the government is able to control inflation as prices of drugs cannot be isolated from these factors.

PPMA chairman announced that the decisions are implemented with immediate effect and work on the replacement of stocks has commenced ensuring availability of reduced price, adding that process to recover and replace stocks at distributor / retail shelf level will be 100% complete in next 15 days since logistics will take time and shortages must be avoided.

Zahid Saeed maintained that the government had allowed 15 per cent increase in prices of locally produced medicines in January this year to ensure the very survival of the pharmaceutical industry of the country facing serious economic challenges in its strive to produce quality drugs at affordable prices for the patients in Pakistan.

Increase in prices of medicines had been in conformity with the several directions of the apex judiciary on the issue, he said and added that in case the government had not allowed the much-needed relief to the Pakistani medicines’ manufacturers in the form of 15 per cent increase in locally produced drugs, public healthcare system of the country would have been in sheer shambles due to unavailability of medicines.

“Cost of production of the local Pharma industry had increased manifold since 2018 due to an unprecedented decrease in value of rupee as compared to the dollar while keeping in view the fact that up to 90 per cent raw material of the industry was imported”, he informed.

Urging the government to slash duties and taxes on import of raw material including packaging material, he said they contribute Rs. 50 billion annually to the national exchequer in the form of taxes and added that if the government makes them tax free industry, they could slash prices by another 15-20 per cent while they could also earn valuable foreign exchange by becoming the second largest exporting industry of Pakistan within two years.