In their requests for price increases, more than thirty pharmaceutical businesses have expressed their inability to continue manufacturing, citing a lack of raw materials and a delay.
The government, according to the health ministry, would ensure that there was no medication scarcity in the nation. The Drug Regulatory Authority of Pakistan (Drap) was notified by as many as 40 firms on Monday that they would be stopping production in a week owing to a lack of raw materials.
Furthermore, they said that courts were not making decisions in their lawsuits seeking price increases under the “hardship category.” If manufacturing costs exceed the maximum sale price, businesses may pursue legal actions to raise prices under the hardship category.
The head of the Pakistan Pharmaceutical Manufacturers Association, Syed Farooq Bukhari, said that the PPMA had sought an overall price hike of 28.5%.
“One US dollar was worth around Rs140 in 2018, but due to the rupee’s depreciation, its value has already risen to almost Rs270. Due to the current circumstances, 40 firms have informed the health ministry and Drap in letters that they would be unable to continue producing medications after one week, he added.
Ayesha Tammy Haq, executive director of the Pharma Bureau that the enterprises were dealing with a significant cash constraint. “It is terrible that letters of credit (LCs) are not being opened despite the government having money to import automobiles. Uncleared containers are being left in place.
Raw materials are no longer available. Additionally, there has been a significant devaluation of the rupee, which has fallen by Rs 60 versus the dollar in only one month, according to her.
The health minister, the secretary of the ministry, and the CEO of Drap were all given a letter stating that the pharmaceutical business is very reliant on the import of raw materials.