ISLAMABAD : April ,28,2023: After weeks of negotiations for fixing up percentage of kickback , finally Economic Coordination Committee (ECC) of the federal cabinet on Friday approved up to 70 % increase in 80 thousands drug prices . Finance minister , Ishaq Dar, chaired ECC meeting which approved unprecedented increase in the prices of life saving drugs.
Ishaq Dar took the Drug Regulatory Authority of Pakistan (DRAP) recommendations made on the basis of Consumer Price Index (CPI) for the period of July 2022 to April 2023 for this killing move.
Its unfortunate that Shahbaz Sharif led government is using CPI based formula to pass on benefit of thousands of billions to drug manufacturing mafia. It was PMLN which had approved CPI based formula in 2013 when Nawaz Sharif was the prime minister for any future increase in the prices of life saving drugs.
NEWSMAN sources reveal that then Health Health minister , Saira Tarar , worked to protect the interests of the drug mafia as Nawaz Sharif ‘s cabinet member by getting approval of CPI based formula for future increase in the drug prices . These sources also claim that Saira Tarar made her personal benefits by getting approval of CPI based formula for the future increase in life saving drug prices.
Pakistan is the only country in the world where life saving drug prices are increased on the basis of CPI . Otherwise, CPI is used only to assess the increase or decrease in the prices of the consumers food related items.
Since 2013, Pakistan Muslim League Nawaz PMLN) approved CPI based formula is haunting the poor patients and their families and till now it had passed on undue benefit of trillions of rupees to the drug mafia .
The same drug mafia hit 15 times in Tehreek e Insaf (PTI) rule to get increase in the drug prices (May 2018-April 2022). With coming in of PMLN led Shahbaz government , the drug mafia made several attempts to get the increase in drug prices, but initially it did not succeed .
Our sources claim that the drug manufacturers had dispute with two powerful members of Shahbaz cabinet over
percentage of kickback on fresh increase in drug prices .To make its efforts fruitful , a delegation of pharmaceutical mafia had flown to United Kingdom for get an order from PMLN top leader for Ishaq Dar and make him to accept their formula (win-win) and put ECC stamp on their desired increase .
The drug mafia finally managed to get its desired result on Friday when ECC approved 70 % increase in the rates of 70 thousdands life saving drugs. This decision shows Shahbaz Sharif government can go to any length to favour any mafia and its Finance minister , Ishaq Dar , suits the best for this dirty job.
Following is the official handout on ECC decision on the drug prices’ increase.
Ministry of National Health Services, Regulations and Coordination presented a summary on increase in maximum retail prices of drugs based on the recommendations of Policy Board of DRAP in the wake of devaluation of Pak Rupee and inflation. To ensure continuous availability of drugs in the market, the ECC allowed as a one-time dispensation , allowed manufacturers and importers to increase their existing MRPs of essential drugs equal to 70% increase in CPI ( with a cap of 14% ) and MRPs of all other drugs and lower priced drugs an increase upto 70% in CPI (with a cap of 20%) on the basis of average CPI for current year i-e 1st July, 2022 to 01st April, 2023 with condition that it should be considered as annual increase for the financial year 2023-24 and no increase under this category will be granted in next financial year. The ECC further advised the Policy Board to review the situation after three months i-e in July 2023 and make its recommendations to the Federal Govt regarding price decrease if Pak rupee appreciates its value.
Pakistan Pharmaceutical Lawyers Forum (PPLF) president , Noor Mahar , called Friday’s increase in life saving drugs a cruel decision of Shahbaz government .
Noor Mahar in his reaction to ECC decision said that Shahbaz government decision to adding 70 % increase in life saving drugs will literally kill the patients and their families. He demands lifting of restrictions on letter of credits (LCs) and make arrangements for producing raw material for Pharmaceutical industry at home.