Ayesha Mudassar

The pharmaceutical sector has called upon the government to allow inflationary adjustments in the maximum retail price (MRP) of essential medicines in order to ensure smooth supply. The current economic crisis has also impacted the pharmaceutical sector in shape of shortage of imported raw materials and machinery due to import restrictions.

Syed Farooq Bukhari, Chairman Pakistan Pharmaceutical Manufacturers Association (PPMA), told WealthPK that the drying-up of foreign reserves, massive rupee devaluation, and rise in utility prices have significantly reduced the country's ability to import essential medicines or active pharmaceutical ingredients (APIs) utilised in domestic production. He said thousands of containers carrying essential items are stuck up at the seaports.

Bukhari said only 12% of APIs are manufactured in Pakistan and the rest are imported from China and India. According to data released by the State Bank of Pakistan (SBP), foreign exchange reserves stood at $3.258 billion in the week ending February 17, 2023. Moreover, the value of the dollar shot up to 266.40 rupees in the open market as of March 1, 2023.

Citing an unprecedented increase in the cost of production, the PPMA chairman said it had become unsustainable for several companies to manufacture medicines. Four multinational companies have wrapped up their operations and around 40 local companies have written letters to the Drug Regulatory Authority of Pakistan (DRAP) signalling suspension of production if such a situation continues.

Bukhari mentioned that the pharma sector played a responsible role during the Covid-19 pandemic, dengue fever crisis, and public health crisis emerging from catastrophic flooding by ensuring the uninterrupted availability of medicines. He said the it is the responsibility of the government to provide the much-needed support to pharma industry during these challenging times.

Credit: Independent News Pakistan-WealthPk