Govt approves up to 10 percent increase in drug prices

August 24, 2020 (MLN): The Ministry of National Health Services Regulation and Coordination allowed pharmaceutical companies to increase prices of medicines up to 10%.

However, according to the statement issued by the Ministry of NHSRC on Saturday, the pharmaceutical companies have decided not to raise drug prices in the first quarter of FY21 to support the government’s move to provide relief to people affected by the pandemic.

Earlier, the government took proactive measures to keep prices stable by negotiating with the pharmaceutical industry to lessen the burden on people amid the COVID-19 pandemic.

Under the Drug Pricing Policy 2018, it is worth mentioning that pharmaceutical companies can raise prices of life-saving drugs by 7% and non-essential drugs by 10% in line with the Consumer Price Index (CPI).

In order to provide a relief to people, the government appreciated and commended the decision of the pharmaceutical companies. Moreover, the ministry stated that all drug prices will remain available at old prices in the first quarter of the current fiscal year.

The ministry issued a notification last month (July) to revise the prices of essential and non-essential drugs following the approval of the Drug Regulatory Authority of Pakistan, but due to the spread of the coronavirus, the matter remained under discussion with pharmaceutical companies.

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