Pakistan Drug Prices Up 4%

The Pakistan caretaker government of Meraj Kahid has allowed a 4%increase in drug prices, Health Secretary Zaheer Sajjad has confirmed, because of the 10% sales tax on raw material imports imposed recently.

The rises will be for both controlled and decontrolled drugs, but prices of drugs imported as finished products will not be affected. Most of the increases will involve drugs manufactured locally using raw materials imported from abroad, ie the bulk of the Pakistani drug market.

A 5% sales tax on imported drug raw materials was applied in October by the Bhutto regime, and a further 5% was added by the caretaker government. Following this, a number of multinational drugmakers approached the Ministry of Health, which then proposed to the government that either the sales tax on raw material imports be withdrawn or companies be allowed to increase prices.