Increase in medicine prices

Ever since the incorporation of Para-7 in the drug Policy of 1960 and drug Act 1976, government had ceded its role in fixing the prices of medicines, which were necessary in the larger interest of the people. The prices of all medicines have been going up at a fast speed, except during 2001-07 when government freezed them for the benefit of common man. The present elected government has allowed increase in medicine prices twice during one and half year, even though deleting Para-7 of Drug Policy on the approval of Federal Cabinet on July. 2020. Last year price increase was allowed 10-15 percent and the other day pharmaceutical companies were once again permitted an increase of 7-10 percent. Drugs Regulatory Authority (DRAP) has issued a notification for it on Friday. It will further compound the miseries of people in low and middle income groups, who are confronted with food inflation. In the past DRAP SROs had resulted in abnormal spike in the prices of life saving drugs, particularly the ones prescribed by doctors for patients of Tuberculosis, Diabetes, Typhoid, cardiac complaints and Hepatitis. After regaining the powers of medicines’ pricing, people expected stability in price and plenty supply of pharmaceutical products in market. On the contrary government did the opposite. That is why citizens from all walks of life have described the fresh DRAP notification for increasing the prices of these products as sheer injustice done to them in an elected government. Taking away drugs pricing powers from pharmaceutical companies and making its determination a prerogative of Ministry of Health Services and DRAP has done no good to the people rather it has added to the financial difficulties of masses. DRAP had issued SRO 34 (1)/2019 in January last year, which allowed an increase of 9 percent in hardship cases and 15 percent in all remaining medicines registered with it. In sharp contrast, pharmaceutical companies jacked up prices much beyond the approved limit and Health Regulatory Authorities under the provincial governments remained mere spectators on the sidelines. By May, 2019 465 medicines registered a price increase from 50-100 percent. The sudden and high rise in prices of life saving drugs had caused great distress among the people, especially for the patients from low and middle income classes that are on regular medication. It was a blatant violation of basic human rights enshrined in the constitution. Interestingly, an eyewash action was taken in the shape of removing health minister to pacify the public anger. The new SRO will have the same impact on common man, if not a bit sever. In the past an unelected government was more concerned about healthcare of the people. In 2001, President Musharraf government took on board pharmaceutical companies; reduced the prices of medicines, which remained freezed till 2007.Exchange rate stability kept cost of imported raw material reasonably low. In 2008 elected government left price determination to the interplay of market forces under Para-7 of Drug Policy.