Pakistan: Price of life-saving medicines might rise by 7 pc amid inflation
Aug 03, 2022
Islamabad [Pakistan], August 3 : The price of life-saving drugs in Pakistan might witness an increase of 7 per cent and the price of other medicines may also hike by up to 10 per cent as per the Drug Pricing Policy of 2018 amid the rising inflation rate in the country.
The prices of medicines were allowed to be increased in relation to the Consumer Price Index (CPI) under the Drug Pricing Policy of 2015, the Dawn newspaper reported.
However, changes were made to the policy in 2018 which directed that even though the hike will correspond with the CPI, the hike will not be more than 7 per cent for lifesaving drugs and 10 per cent of the max retail price (MRP) for other medicines in case of double-digit inflation.
The prices of lifesaving medicine can increase by 7 per cent which is 50 per cent of the CPI (12.65), a Drug Regulatory Authority of Pakistan (Drap) official said.
The prices of non-scheduled drugs can be increased by up to 70 per cent of the inflation rate and the price threshold drugs can witness a 100 per cent increase in line with the CPI, the publication said.
Notably, the Pakistan Bureau of Statistics (PBS) on Monday reported that the inflation rate in the country has spiked to a 14-year high of 24.9 per cent in the month of July, media reported.
The CPI inflation rate spiked at 23.6 per cent in urban areas and 26.9 per cent in villages and towns on a yearly basis. CPI measures the change in prices paid by consumers for goods and services.
Pakistan's inflation has remained in double-digit which is adversely affected people's purchasing power. The overall price growth remained in double digits because of an increase in the rates of food items, which were taxed by the last government, reported the country's local media outlet Geo TV.
Overall, out of 12 groups of various goods and services, the inflation rate for 10 of them remained in double digits. This indicates that the inflation web has spread across almost all commodities.
The prices of both non-perishable and perishable food products increased significantly last month. The food group prices surged nearly 29 per cent in July in comparison with the same month a year ago. The PBS said the prices of perishable food items increased by 32.93 per cent.
There is an increase in the prices of food items and petroleum products. The pace of food inflation surged to 27.4 per cent in cities and rose to 29.6 per cent in villages and towns last month, according to the PBS.
