Caretakers notify price increase for 146 essential medicines

The interim government on Wednesday announced a rise in the cost of 146 critical medicines, following a directive from the federal cabinet on February 1, 2024. 

This development has sparked concerns about medication affordability and availability, as the government seeks to balance pharmaceutical industry sustainability with public health protection.

Following the cabinet’s decision to raise drug prices, a notable shortage of essential medicines was observed in both wholesale and retail markets.

Retailers and distributors attributed this to manufacturers withholding supplies in anticipation of the Health Ministry’s formal price increase announcement.

The Ministry of National Health Services and Regulations released a statement, declaring that, under section 36 of the Drug Act 1976, it would exempt drugs and biological substances not listed in the National Essential Medicines List (NEML) from section 12 of the same act. 

The decision came after a federal cabinet session on February 1, 2024, led by caretaker Prime Minister Anwaarul Haq Kakar, approved the price increase under the hardship category based on on advice of the Ministry of National Health Services that highlighted the global rise in raw material costs for drug manufacturing. 

The Health Ministry and the Drug Regulatory Authority of Pakistan (DRAP) also mentioned that the public could report any medicine shortages via DRAP’s online portal. 

The price adjustments are aimed at essential drugs, including cancer treatments, vaccines, and antibiotics. These changes were recommended by the DRAP, which initially proposed hikes for 262 medicines, but the government decided to limit the increase to 146 crucial drugs. 

Pharmaceutical companies will directly implement price changes for 116 of these drugs. The government will maintain price control over 464 medicines listed in the NEML, ensuring their availability.

This deregulation of drug pricing allows pharmaceutical companies to set prices independently, marking a significant change in the management of drug costs and potentially altering the healthcare industry’s landscape.