Govt to recover amount from manufacturing firms

Illegal hike in drug prices

ISLAMABAD: The government has informed the Senate Standing Committee on National Health Services that the amount pocketed by the pharmaceutical firms through illegal increase in drug rates will be recovered along with 20 percent of that amount as penalty and spent on poor patients.

The committee’s report on the hot issue of recent increase in prices of various medicines by the pharmaceutical companies was presented in the Senate the other day. The meeting was held a few days back to take up the matter, raised on a point of public importance by MQM’s Senator Mian Muhammad Attique in the Senate.

The committee, which met under its Chairman Senator Sajjad Hussain Turi, had expressed concern over the delay in taking decisions on a large number of cases pending in the pricing committee.     

The forum also showed its annoyance on a large number of pending cases for registration of new drugs. It was told that the process was accelerated and it was assured that the cases submitted till May 2014, would be cleared by October this year.

About the drug price increases, the committee was told by the government that a decision had been taken and an amendment in the relevant schedule appended to the Drug Act, which would allow the government to recover the amount from drug companies in the wake of price increases.

At the end of the meeting, the committee thrashed out some recommendations, which included the proposal that the extra amount charged by the drug companies in the shape of illegal increases in prices of their medicines be recovered from them and should be spent for the welfare of poor patients in Pakistan through the Benazir Income Support Programme and in consultations with the standing committee.

The Ministry of National Health Services was asked to expedite the process of finalising the cases for fixation of prices of medicines, including the hardship cases and clear the backlog by August 2016.

The pricing committee, it was recommended, should meet at least once in a month and the minutes of the meetings should be issued within 15 days. The panel recommended that the ministry should take stern action, including cancellation of their (drug firms) registration, against firms which increase prices of medicines without the approval of the government.