The Drug Regulatory Authority of Pakistan (DRAP) has granted permission to pharmaceutical companies to increase the prices of life-saving drugs by 14 percent and other drugs by 20 percent.
In a notification released on Friday, the authority has established new maximum retail prices (MRPs) for drugs and biologicals.
However, this approval comes with certain conditions. It allows manufacturers and importers to raise the existing MRPs of essential drugs and biologicals by an amount not exceeding a 70 percent increase in the Consumer Price Index (CPI), with a maximum cap of 14 percent. Similarly, the MRPs of all other drugs and biologicals, as well as lower priced drugs, can be increased up to the increase in CPI, with a maximum cap of 20 percent, based on the average CPI for the current year.
The Policy Board of the DRAP will assess the situation after three months, specifically in July 2023, and provide its recommendations to the federal government for consideration. These recommendations may include a decrease in prices if the value of the Pakistani rupee appreciates.
Cases that have been recommended for adjustment by the drug pricing committee and are awaiting approval from the federal government will also undergo a review process.
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