Jordan Plans Price Increase For Imported Drugs

Jordan plans to raise the prices of some imported medicines by 3.9%, according to a report in The Jordan Times. This move comes in response to claims by local drugmakers that the inflexible pricing system has hindered the development of the national drug industry, which is Jordan's main hard-currency earner (Marketletter July 15).

Abdul Rahim Issa, president of the Jordan Pharmacists Association, has confirmed that the government plans to increase the prices of some drugs registered since 1988, but he stressed the rise would not exceed 4%.

The crisis arises in part from old pricing policies which make the Jordanian dinar equivalent to $3, the pre-1989 price, rather than the current rate of $1.40. Drug firms say little profit can be made because drug prices are based on imports, and are unchanged once set. Drugs are Jordan's second-largest export, standing at $168 million in 1995, after potash.