PHC stays increase in prices of medicines

PESHAWAR: The Peshawar High Court (PHC) on Thursday stayed increase in prices of medicines till the next order by suspending the Drug Regulatory Authority of Pakistan's notification about the hike in maximum retail price (MRP's) of medicines.

A division bench comprising Justice Ikramullah Khan and Justice Musarrat Hilali issued the stay order. It restrained the federal government from increasing the prices of medicines till the next order of the court. However, the bench also warned of strict action against the medicines stores and shops owners, who were found involved in storing or hiding the medicines. The bench issued a notice to the federal government, Drug Regulatory Authority Pakistan, Director Costing and Pricing DRAP, Khyber Pakhtunkhwa government and secretary Health Department, directing them to submit reply before February 3, next hearing in the petition.

Asmatullah, a resident of Peshawar, had challenged the 15 percent increase in prices of medicines by the federal government.

During the course of hearing, Noor Alam Khan, counsel for the petitioner, submitted before the court that respondent No. 2 (DRAP) on January 10 in exercise of powers conferred by clause "a" of Section 7 of the Drug Regulatory Authority of Pakistan Act, 2012 read with section 12 of Drug Act, 1976 increased the medicine prices through a notification.

Through the notification, he pointed out that the DRAP approved 9 percent hike in the price of life-saving medicine whereas 15 percent hike was approved in the price of all other medicines. The lawyer explained that the government instead of providing any relief to people and the generally poor public has increased the drugs prices despite the fact the old prices were already unaffordable, while 50 percent country's population living under poverty line and suffering from inflation and economic crisis. He argued that increasing price through impugned notification is unreasonable, contrary to the law and liable to be declared ultra vires of the constitutional provisions of Article 9 and 38 (d) of Constitution.

"The impugned notification has been issued by the DRAP without fixing any structure for calculation of prices and taking into consideration other relevant matters which were essential for determination," it was stated in the petition, adding that one of the basic reason of increase in the price is nexus between DRAP and Pharmaceutical Companies because the DRAP possesses very wide, absolute and unbridled powers for determination of medicines prices under section 12 of Drug Act, 1976, which empowers it without providing any formula.