ECC likely to approve 15pc to 125pc price hike for 262 life-saving medicines today

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday is likely to grant its approval to increase Maximum Retail Prices (MRPs) of 262 drugs under the hardship category as recommended by the Drug Pricing Committee (DPC) in its 56th and 57th meetings held on 21-22nd June 2023 and 26-27th July 2023 respectively.

According to the available agenda of the ECC meeting, the federal cabinet’s economic coordination committee (ECC) is scheduled to meet on Thursday under the chair minister for finance, revenue, and economic affairs to take up five agenda items.

The agenda items of the ECC meeting include:

1. Approval of increase in Maximum Retail Prices (MRPs) of 262 drugs under hardship category as recommended by the Drug Pricing Committee (DPC) in its 56th and 57th meeting.

2. Application for the grant of Marginal Policy Pricing Incentives for the Jhal Magsi South Development & Production Lease (D&PL) covering an area of 17.71 square kilometer located in district Jhal Magsi, Balochistan.

3. Import offers of urea fertilizer for Rabi Season 2023-24.

4. Relaxation from relending policy of Government of Pakistan for National Database and Regulation Authority (NADRA).

5. Cash credit limits for Punjab and Sindh for the quarter July-September, 2023.

The ECC meeting may take up any other item with the permission of the chair.

Sharing details regarding proposed increase in MRPs of 262 drugs under hardship category, sources said that ECC in its meeting held on 15th November, 2023 had considered the summary dated 13th November, 2023 submitted by the Ministry of National Health Services, Regulations and Coordination (NHSR&C) regarding approval of increase in Maximum Retail Prices (MRPs) of 262 drugs under hardship category as recommended by the Drug Pricing Committee (DPC) in its 56th and 57th meetings held 21-22nd June, 2023 and 26-27th July, 2023 respectively.

The ECC directed the ministry to carry out a detailed analysis of the recommendations of DPC in its said meetings and forward the same with clear recommendations to the Cabinet Division by 21st November, 2023 for consideration of the ECC in its next meeting.

The ECC also directed to hold a meeting with all provincial health ministers to have their view point on the said DPC recommendations, said sources.

Following the directions of the ECC, the DPC recommendations have also reviewed by a committee of M/o NHSR&C, they added.

As per the sources, according to a report of the M/o NHSR&C committee, with respect to non-viability of sale of drugs at present MRPs, the committee concluded that based on the definition of hardship cases given in paragraph 9 of the Drug Pricing Policy-2018 and calculations made by the DPC were as per formula given under the said paragraph, hence, the cases of these 262 drugs fall under hardship category.

The committee further found that the cases, which did not fall within the policy parameters, were rejected by the DPC (278 cases).

Similarly, calculations of MRPs of these drugs worked out by the DPC of DRAP have been found in line with formulae given in the said policy and DPC did not recommend any MRP beyond the price calculated /allowed under formula.

Moreover, in some of the cases where massive increases have been recommended, it is found that these drugs were not marketed by the concerned pharmaceutical companies due to higher cost of import than MRP granted/approved by the federal government.

A meeting with all provincial health ministers to discuss increase in MRPs of these drugs under hardship category was also held on 16th November, 2023 under chair of Dr Nadeem Jan, Federal Minister for National Health Services, Regulations and Coordinations.

All provincial health ministers were of the view that most of common use medicines were not available in the market due to which patients & doctors both are facing problems.

Caretaker Health Minister of Khyber Pakhtunkhwa were of the opinion that this shortage of medicines is because selling of these drugs is not viable at present prices. He, therefore, agreed to the proposed increase in MRPs of 262 drugs as calculated under hardship category as per para 9 of the Drug Pricing Policy-2018.

A market survey was also conducted in provincial capital (Lahore, Karachi, Peshawar and Islamabad). It was noted that many drugs were not freely/not available in the market and some drugs were being sold in black market on prices much higher than approved MRP.

It will not be out of place to mention that last notification of increase in MRPs of eight (08) drugs under hardship category was issued in September, 2021.

The revised MRPs of these 262 drugs will be applicable with prospective effect. Although the examination carried out by the ministry shows that the recommendations of the DPC are in line with the parameters defined in the Drug Pricing Policy-2018, yet the ministry is of the considered view that the proposed increase in MRPs under prevalent inflationary pressures would adversely effect the poor.

However, as per directions of the ECC, the recommendations of the DPC in its 56th and 57th meetings regarding increase in MRPs of 262 drugs under hardship category are now being submitted for consideration of the ECC.