
Pakistani government takes away pharmaceutical companies’ power to raise drug prices
pharmafile | July 9, 2020 | News story | Business Services |Â Â Pakistan, Pharmaceutical CompaniesÂ
The government of Pakistan has decided to abolish all sections of the Drugs Pricing Policy, which will take away pharmaceutical companies ability to increase drug prices on their own.
Prime Minister Imran Khan had ordered a review of the Drugs Pricing Policy due to prices rapidly increasing in the last 10 months. Under paragraph 7 of the policy, companies could increase the prices of their drugs based on the consumer price index without approval from the government, and they only had to inform the health ministry 30 days before carrying this out.
According to official documents, Adviser to PM on Commerce, Textile and Investment Abdul Razak Dawood and Special Assistant to PM on Health Dr Zafar Mirza advocated for the companies to retain their power to raise prices, while Secretary Heath Aamer Ashraf Khawaja supported the Prime Minister.
Uncontrolled drug prices are a major concern in Pakistan. In a 2019 study, published in PLOS ONE, several medicines used in the treatment of common ailments such as hypertension, diabetes, ulcer and arthritis, were found unaffordable for majority population in Lahore Division, Pakistan.
In 2019, multiple pharmaceutical companies raised their prices prompting a widespread backlash across the country.
Conor Kavanagh
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