Islamabad, Pakistan – Over three dozen pharmaceutical companies in Pakistan have expressed their inability to continue production due to the unavailability of raw materials and delays in their court cases seeking price increases. This situation has raised concerns about a potential shortage of medicines in the country.
As many as 40 companies informed the Drug Regulatory Authority of Pakistan (DRAP) on Monday that they plan to halt production within a week due to a shortage of raw materials. The companies claim that their court cases seeking price increases under the “hardship category” have not been decided. The hardship category allows companies to file court cases to increase prices if the production cost exceeds the maximum sale price.
Pakistan Pharmaceutical Manufacturers Association Chairman, Syed Farooq Bukhari, has demanded a 28.5% across-the-board increase in prices. He stated that due to the depreciation of the rupee, the value of the US dollar has increased from around 140 rupees to around 270 rupees, leading to the current situation.
Executive Director of Pharma Bureau, Ayesha Tammy Haq, has expressed frustration about the severe shortage of dollars facing the companies. She claimed that the government has dollars to import vehicles but is not opening letters of credit, causing a backlog in clearing containers and running out of raw materials. She also pointed out that the devaluation of the rupee has dropped by 60 rupees against the dollar in just one month.
The pharmaceutical industry is heavily dependent on the import of raw materials, which have seen exponential increases in price since the outbreak of the Covid-19 pandemic. The industry has repeatedly urged the government and DRA to take remedial measures by allowing inflationary adjustments in the maximum retail prices of medicines but claims that the government and DRA have failed to take any action, resulting in the collapse of the industry.
In a letter sent to the health minister, the ministry’s secretary, and the DRA CEO, the industry stated that it has become unsustainable to manufacture medicines and ensure their availability beyond the next seven days. The Ministry of National Health Services Director General, Dr. Baseer Khan Achakzai, stated that the ministry will take appropriate action after receiving the companies’ letters but assured that the government will make sure there is no shortage of medicines in Pakistan.
In conclusion, the current situation raises concerns about a potential shortage of medicines in Pakistan and highlights the challenges facing the pharmaceutical industry. The government and DRA are being urged to take swift action to address the situation and ensure the availability of safe, effective, and affordable medicines for the general public.
