E-drug: Drug Prices in Pakistan (cont)
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I received this e mail message on Friday 13 November.
Any e-druggers who can respond should do so as soon as possible.
Joel Lexchin
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November 13, 1998 URGENT URGENT URGENT
email address: wasim@idirect.com
Mr Joel,
The Government of Pakistan is currently considering raising drug prices
by 13 per cent on the insistence of multinational drug companies. A
decision is likely in the next 48 hours. Drug prices in Pakistan are on
an upward spiral, having increased by 400 per cent since 1993. As it is,
the prices of almost all medicines in Pakistan are much higher than in
India, a comparable market. There is no justification for the multinational
drug companies to seek further price hikes. The common
man would be very badly affected by price increase of such an essential
thing as medicines. As it is, there is high inflation in the country and
if drugs manufactured by legitimate companies become too expensive, the
poor people may be forced to use cheaper substandard or fake drugs. This
will have a very harmful effect on the health of the poor people in the
cities and villages for whom adequate health facilities are not available
anyway. We would like to urge the Government of Pakistan not to
increase the prices of drugs in the country on the insistence of
multinational pharmaceutical companies. We would like to do this by:
(1) Writing letters to the Government of Pakistan.
(2) Writing to the media in Pakistan in order to increase awareness and
put pressure on the Government. We feel our request would carry more
weight if other groups and persons join us in undertaking the above
moves. We would like to invite you to kindly help these moves by
sending back this e-mail to us stating that you do not want a drug price
increase in Pakistan. Please mention your name and the name and address of
the organisation you represent. Additionally, can we request you to
circulate this request among your network of organisations and
individuals. They too can simply send this e-mail back to us with their
names, addresses, etc. We are a group of individuals concerned with
social development issues in Pakistan. We are based in Mississauga,
Ontario, Canada and have supporters in the Pakistani media and social
development circles. Please send back this e-mail as soon as possible
as we must approach the Government and media within the next 24 hours.
Yours truly Asma Siddiqi
Email: wasim@idirect.com
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Attached below are two news items on the issue of drug price increase.
Dawn 13 Nov
400% increase since 1993: Govt agrees to 13% hike in drug prices
ISLAMABAD, Nov 12: The health ministry has recommended a 13 per cent
increase in medicines prices in its summary to the cabinet, official
sources said on Thursday. The federal cabinet had to take up the summary
for approval during its last meeting, but certain pressing national
issues dominated the discussions. However, the companies are now pulling
strings for a quick government approval and it is likely that the cabinet
will dispose of the matter during its next meeting. The health ministry's
favourable recommendation to the pharmaceutical industry's demand comes
against the backdrop of up to 400 per cent increase in drug prices when the
government had announced its policy of decontrol."While announcing the
policy of decontrol on June 12, 1993, the government had given the
assurance that the prices of medicines will not register increase, rather
they will decrease gradually due to reduction in bureaucratic controls
and elimination of corruption and malpractices," officials sources
said. A study, conducted by the ministry itself, shows an increase of up to
400 per cent in drug prices since June 12, 1993. "The much-claimed freeze
on prices, imposed in November 1996, was also for public consumption
since prices continued to rise," the officials said. The price increase
also shows the failure of the cost accountant cell in the health ministry,
which in 1993 was assigned the responsibility to monitor the market with a
view to checking unreasonable price hikes of decontrolled items. Sources
accused the ministry officials of colluding with the multinational
companies (MNCs) in the price game that generated billions of rupees in
profits to manufacturers and hit the common man who was already finding
it hard to survive in these days of economic hardship. "The ministry
high-ups have time and again ignored the cabinet and ECC directives asking
them to streamline the price issue and check the drugs being sold at high
prices in the country. However, their only strategy is to perpetuate the
game of loot as long as possible," they said. An official of the Pakistan
Medical Association (PMA) questioned the health ministry's approval to 13
per cent increase in drug prices, saying that the common people, doctors,
an NGO and chemists, have already established the case that these
companies were on a profit spree. "Any increase in drug prices will bring
a bad name to the government beside adding to the masses' already
shrinking household budget," he said.-NNI
Dawn
12 November 1998
Thursday 22 Rajab 1419
MNCs asked to bring down prices of 46 medicines
By Haris Anwar
KARACHI, Nov 11: The government has asked the multinational pharmaceutical
companies to bring down prices of 46 products before it could consider any
across the board increase in drug prices. The 46 drugs officially
identified are selling in local market at much higher prices than those
prevailing in India. "This is an issue which should be discussed at the
companies level. As a group we can't take any decision on that", said
Zafar Mooraj, Executive Director, Pharma Bureau. These 46 products, which
have been identified by the task force of the ministry of health, are
produced by 16 multi-national companies. "We are going to tell them
tomorrow that first they should immediately announce 9-15 per cent
increase then this issue can be looked at case-to-case basis", he said. Dr
Hafiz Pasha, former finance advisor to prime minister, in March 1998, had
recommended a 9 per cent price increase on controlled drugs and 15 per cent
on de-controlled drugs. The Pharma Bureau of 23 multinational
pharmaceutical companies have been demanding increase in the drug prices
in accordance with the agreed pricing formula. This formula provides for
annual price raise to make-up for input cost increase. These foreign
companies claim that out of 44 products marketed by the multinational
companies, 19 are less expensive in Pakistan. But the consumer protection
groups like Network- Association for Rational Use of Medicines- says drug
prices in Pakistan are already among the highest in the region and need
to be rationalized. A recent market survey, conducted by the Health Action
International, shows that out of 21 most commonly used drugs, 15 were
expensive in Pakistan compared to India. On the other hand, Pharma Bureau
argues that price comparison with India is unjust because India is a big
consumer market and those cost-push factors are not there which have
contributed in the drug price increase in Pakistan.
Pharma Bureau comprises 23 MNCs having more than 60 per cent share of the
domestic market.
(c) The DAWN Group of Newspapers, 1998
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Joel Lexchin MD
121 Walmer Rd.
Toronto, Ontario
CANADA M5R 2X8
Phone: (416)-964-7186
Fax: (416)-923-9515
e mail: joel.lexchin@utoronto.ca
[send reactions directly to Pakistani group at
email wasim@idirect.com WB]
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