By Staff Reporter
ISLAMABAD: The government on Friday approved an increase in retail prices for both general and essential medicines, with the latter rising by up to 14 percent and the former by as much as 20 percent.
The decision, made during a meeting of the Economic Coordination Committee of the Cabinet led by Finance Minister Ishaq Dar, followed a lengthy standoff between the government and drug manufacturers and importers.
Industry associations had called for a 39 percent increase across the board, but the government had previously resisted such a move, concerned that it could harm its electoral prospects.
The current increases have been introduced to counterbalance the country’s annual inflation rate, which hit 35 percent in March due to factors such as a weakened currency and higher tariffs. Food inflation has risen even higher, to 47 percent.
To ensure a constant supply of drugs, “the ECC has permitted manufacturers and importers to increase the maximum retail prices of essential drugs by 14 percent, and those of all other drugs by up to 20 percent, based on the Consumer Price Index (CPI) with a cap of 70 percent, for the period from July 1, 2022 to April 1, 2023,” a statement said.
“This is subject to the condition that it should be considered an annual increase for the 2023-24 financial year”, and that no further increases will be granted next year.
The ECC has asked the Policy Board to review the situation in July 2023 and make recommendations on price decreases if the rupee appreciates.
The Pakistan Pharmaceutical Manufacturing Association criticized the decision, arguing that the increases were inadequate.
Meanwhile, the Ministry of Aviation has submitted a summary to the ECC about the challenges of reopening the Roosevelt Hotel in New York, which has been offered to PIA Investment Limited for migrant business at $200 per room per day for a three-year period.
The ECC has approved a four-member negotiating committee led by the Secretary of the Aviation Division to discuss the matter with the New York City Government and the Hotel Union.
The ECC has also permitted PIA-IL/RHC to use $1.145 million as bridge financing to commence reopening the hotel.
The ECC also approved a Ministry of National Food Security and Research summary regarding wheat procurement targets for the 2022-23 crop.
The government of Sindh has been assigned a procurement target of 1.4 million metric tonnes (MMT) with a procurement price of Rs4,000/40 kg, the government of Punjab has been assigned a target of 3.5 MMT with a procurement price of Rs3,900/40 kg, and the government of Balochistan has been assigned a target of 0.1 MMT with a procurement price of Rs3,900/40 kg.
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