Pharma Bureau demands CPI-adjusted medicines amid inflation, import costs

KARACHI: The Pharma Bureau, the representative body of pharmaceutical companies , urged the government on Wednesday to swiftly announce consumer price index (CPI) adjusted prices for medicines, as the drug shortage is becoming a crucial issue.

The industry has been facing challenges due to hyperinflation, massive devaluation, import tariffs, high energy costs, and water purification issues, which have increased the costs of manufacturing and importing medicines, bureau said in a statement.

The lack of access to medicines is a growing concern as the availability of both locally produced and imported medicines is decreasing, forcing patients to purchase medicines at a higher price in the black market, it added.

The bureau's executive director, Ayesha Tammy Haque, said the industry filed for hardships, which have been reviewed and evaluated by the Drug Regulatory Authority of Pakistan (DRAP), and 262 hardship cases are pending approval of the federal government for over a year.

She added that the industry-specific challenges, including labour and energy-intensive processes, high energy costs, water purification challenges, and import tariffs have increased the production costs significantly.

The pharmaceutical industry believes that unsustainable and unpredictable policies in addition to excessive controls, have led to drug shortages, counterfeiting, black-marketing, unavailability of essential drugs and medicines being imported at significantly higher prices in the market," Haque said.

She highlighted the substantial losses faced by pharmaceutical companies due to the continuous devaluation of the rupee and the import dependency for active pharmaceutical ingredients and packaging materials.

Haque advised the government to do away with price regulation and focus on quality regulation instead, to ensure smooth supply of quality medicines to the patients. “This shortage of medicines has resulted in the growth of the gray market, as this vacuum is being filled by smuggled medicines without any warranty and genuine medicines are being replaced by spurious and counterfeit products,” she said, adding that these markets have become bigger than the white market.

“The government should consider this plea as an SOS call from the industry to allow CPI adjusted price increase for the medicines,” Haque said. "The government acknowledges the issue, but is neither taking responsibility nor making any attempt to remedy the situation."

The pharmaceutical industry has been calling for sustainable policy making to ensure the availability of medicines. “To support local manufacturing and enable export capabilities, long-term policies and comprehensive drug pricing strategies are crucial. By doing so, the industry can thrive, ensuring availability of affordable and high-quality medicines for patients.”