[e-drug] Linking drug prices with inflation will amplify miseries of the poor

[Azhar Hussain <azhar@thenetwork.org.pk>]

E-drug: Linking drug prices with inflation will amplify miseries of the poor
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Press Release
October, 14, 2002

Linking the drug prices with inflation will amplify miseries of the
poor, The Network rejects proposal of pharmaceutical industry
representatives

Islamabad .The Network for Consumer Protection has shown its serious
concern over the proposal of increasing the prices of drugs based on
inflation or Consumer Price Index. This proposal was submitted by the
representatives of pharmaceutical industry during their meeting with
officials of ministry of industries. A report appeared in a leading
English newspaper, claims that the representatives of the pharmaceutical
industry have demanded the ministry of industries that the prices of the
registered drugs should be reviewed in December 2002 since the last
increase in medicines prices was allowed on December, 10, 2001, the
industry's representatives also demanded that market forces should be
allowed to decide whether the policy of registering imported medicines
should continue or not.

Dr. Zafar Mirza, Executive Coordinator of The Network for Consumer
Protection, in a statement issued here today said there is a strong case
for the reducing the prices of medicines. Studies conducted in the past
show a great difference of prices of drugs available in Pakistan and
neighboring countries. While raw material prices and other production
costs are not too much different, there seems no justification of
comparatively higher prices of drugs in Pakistan. 'A country like
Pakistan where almost half of population doesn't have sufficient access
to the required medicines and eighty percent of population has to buy
drugs from their own pocket, linking the drug prices with inflation or
CPI will further increase the miseries of poor segments of society,'
said Dr Zafar.
He was of the opinion that Pharmaceutical Industry in hands with Ministry
of Industries was trying to mislead the people and is trying to play
down the real issue by flashing the false dreams of price decrease.
Pharmaceutical companies have reportedly given an undertaking to the
government that they will not increase the drug prices for next one year
but there is no guarantee that after one year there would be no
extraordinary hike in prices of drugs. The experience of 1993 partial
deregulation of prices of pharmaceuticals in Pakistan and same policies
adopted in other countries suggests that increase in prices can never be
controlled after deregulation of pricing mechanism.
The Network demands formation of a  'Strong Drug Regulatory Authority'
that may be given powers to control the registration and pricing of
drugs in consumers interest To ensure independence and consumer friendly
posture of the proposed body, consumers should be given significant
representation in the process of finalizing the composition and terms of
reference of the authority, says the press release.

The Network has also demand that prices of registered drugs must be
reviewed downwards instead of being increased as prices of drugs in
Pakistan are already higher as compared to the neighboring countries
like India and Iran whereas consumers� purchasing power is steadily
squeezing due to inflation, price hike and decrease in income.

Azhar Hussain
url:http://www.thenetwork.org.pk
TheNetwork for Consumer Protection
email:azhar@thenetwork.org.pk
Project Coordinator Pharmaceuticals
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