With the approval of the federal government, the Drug Regulatory Authority of Pakistan (DRAP) has increased drug prices in the range from 09 percent to 15 percent. According to a notification issued on Friday, maximum retail prices of drugs may be increased under paragraph 12(8) of the Drug Pricing Policy, 2018, namely (a) Nine percent over and above the maximum retail prices as determined under hardship category during the year 2018, and (b) Fifteen percent over and above existing maximum retail prices determined under Drug Pricing Policy, 2018 for drugs other than those specified in clause (a).

The notification said that the revised maximum retail prices shall be printed on the label in the manner prescribed by the Drug (Labeling and Packaging) Rules, 1986 and the manufacturers and importers of drugs shall furnish calculations of revised maximum retail price of drugs to the Division of Costing and Pricing of the Drug Regulatory Authority of Pakistan before affecting the increase.

The country''s pharmaceutical industry has welcomed the government decision, however it said the increase is below their expectations.

Pakistan Pharmaceutical Manufactures Association Chairman Zahid Saeed said that local pharma industry was near collapse due to heavy increase in cost of doing business. Over 40 percent currency devaluation, 65 percent increase in gas prices and 45 percent hike in power tariff has put a huge burden on the industry, he said. He said that the industry was facing huge debt burden due to increase in interest rate. "We were expecting an increase of around 30 percent in the drug prices to support the local industry," he added.

Copyright Business Recorder, 2019