Devolution of Health Ministry – Anomalies surround new drugs pricing policy

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ISLAMABAD – The Ministry of Health is engaged in formulating a new drugs pricing policy whereas the fate of Drugs Registration Authority (DRA) and Drug Control Organisation (DCO), the two major bodies meant to implement it, is hanging in balance after the devolution of the ministry to the provinces. The Ministry of Health a few days back had proudly announced that the country would soon have new drug pricing policy which was being formulated in consultation with all the stakeholders and would take into account the concerns of both the consumers and the manufacturing sector.
Talking to Pakistan Today Dr Sania Nishtar, the head of Heartfile, a health sector think tank, said the government should first sort out who would deal with the pricing and registration of the drugs after devolution of the Ministry of Health under the 18th Amendment. She said the announcement of new drug pricing policy now was very strange because the ministry was not sure who would have the mandate for implementation after transfer of powers to the provinces. An official in the ministry on condition of anonymity told Pakistan Today that in the absence of a proper pricing policy, the registration and increase in the drugs prices depended on the DCO; therefore, there had been100 percent increase in prices of many drugs during the last three years.
“The DRA must be a federal subject after the devolution of ministry and transparent as the Ministry of Health has registered record 40,000 drugs within two years from 2008 to 2010,”he said, adding that according to the official data of ministry’s drug section, the government registered only 45,000 drugs from 1947 to June 2008.
Haroom Qasim, Chairman Pakistan Pharmaceutical Manufacturers Association (PPMA), during a conversation with Pakistan Today welcomed the upcoming pricing policy but expressed concern that the industry might face losses to the tune of billion of rupees because of the prevailing uncertainty between the small and large drug manufacturers after the devolution of powers.
The centre took 40 years to develop the drug testing and registration mechanism, but it was not possible to create a similar system in the provinces within a year, he said. Similarly, licensing of new companies, renewal of the contracts, imports and exports of raw material and the furnished goods and fixation of drug prices would also be affected during the establishment of new set up, he added. When contacted Director General Health Assad Hafiz maintained that only 16,000 drugs were registered in the last three years while the prices of an average of 100 drugs per year was hiked in said period.
He said the old policy was formulated in 2002 which necessitated renewal. “We are formulating the policy but it would be finalised only when the things will get clearer about the devolution of ministry,” he added.