E-DRUG: Drug Prices in Pakistan (2)
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This is in response to Asma Siddqui's letter which was forwarded to
E-Drug's Joel Lexchin, who also expressed his concern on the matter.
We thank you for your concern about the reports of increase in
medicine prices in Pakistan.
TheNetwork, as an important stakeholder on behalf of the consumers, is
closely watching the developments with regard to the ongoing
government-industry negotiations. We are in touch with the media,
government officials and politicians in a bid to expose the real face
of the industry.
In a country where 60 per cent of population do not have access to
medicines (UNDP, 1993), a price increase would go against the
government's "health for all by the year 2000" promise. TheNetwork has
already urged the government to address on a priority the fundamental
issues in the health sector including transfer pricing by MNCs,
implementation of National Drug Policy and Essential Drugs Concept, in
addition to formulating Drug Pricing Policy which the government had
promised in 1993 when it partially decontrolled the pharmaceutical
sector.
Our assessment is that the political leadership does not want to give
any price increase at this point of time for political reasons. The
health minister has even accused the companies of illegally rising the
medicine prices, in some cases by 2,000 per cent (Dawn, November 14,
1998) against the backdrop of industry's hue and cry of price freeze
since November 1996. The minister has however indicated that the
government may give a seven per cent increase after the industry
withdraws 100 per cent or more arbitrary increases.
On the other hand, the industry, especially the multinational
pharmaceutical companies, are pulling all strings nationally and
internationally to have their demands met. We have come to know that
ambassadors of various countries are pleading the industry's case with
the government. Moreover, the MNCs are using strong-arms tactics such
as threats of pulling out investment from Pakistan and fluctuating the
supply of essential drugs.
In the wake of economic crisis our country is facing, TheNetwork feels
that the government would not be able to sustain the pressure for very
long, especially when the industry threatens it with pulling out
investment. We would appreciate if international health groups send
their concern statements to Health Minister Javed Hashmi on Fax No.
92-51-9208749 and copy forwarded to TheNetwork at Fax No.
92-51-291552.
Dr Zafar Mirza
(Executive Coordinator)
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The Network
(Association for the Rational Use of Medication in Pakistan)
H.No. 60-A, Str. 39, F-10/4, Islamabad
Ph. 281755; Fax. 291552
Email: zafar@arump.sdnpk.undp.org
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