Last Update: February 07, 2023, 10:22 IST
Pakistan’s current foreign exchange crisis, which has hit an eight-year low of $4.3 billion, has also affected the production of medicines. (Photo: AFP file)
The letter to the government and the Drug Regulatory Authority of Pakistan said that the pharmaceutical industry has been devastated as the prices of active pharmaceutical ingredients such as raw materials used in the manufacture of drugs have risen sharply in the international market.
Pakistan, which has been going through economic turmoil and austerity measures to ensure bailout by the IMF, is now seeing its pharmaceutical sector crashing with raw material prices soaring amid currency devaluation.
Industry experts have written a letter to the federal minister and officials of the Drug Regulatory Authority of Pakistan (DRAP) regarding their concerns.
The letter states that the pharmaceutical industry is facing a devastating blow as the prices of active pharmaceutical ingredients (APIs), raw materials used in the manufacture of drugs, have risen sharply in the international market.
The industry continually drew the attention of the federal government and DRAP to the denial of access to safe, effective, potent, beneficial, efficacious and affordable drugs to patients and the public.
The letter also states, “Due to the foregoing and being forced and constrained by circumstances beyond the control of the pharmaceutical industry, it has become completely impossible to manufacture the medicines and ensure their availability beyond the next 7 days.”
It is to be noted that since July, 2020 the Pakistani Rupee has depreciated by over 67% against the US Dollar.
The cost of factors of production such as fuel, power, freight charges and packing material has seen an unprecedented increase during the same period.
Citizens already facing over 1000% increase in prices of generic medicines due to closure of trade route India and Pakistan.
Pakistan’s current foreign exchange crisis, which has hit an eight-year low of $4.3 billion, has also affected the production of medicines. At least 770 drug manufacturers are affected by the drug shortage crisis.
Due to the current crisis, Pakistan is unable to buy basic imports including medicine for cancer treatment, and active pharmaceutical ingredients, vaccines and products, reports The Express Tribune.
Pakistan is seeking $1.1 billion from the IMF as part of its $6 billion bailout package to avoid default. Talks with the IMF to revive the bailout began on 31 January.
Pakistani Prime Minister Shehbaz Sharif also warned of “difficult times” ahead as his government struggles to meet IMF conditions for releasing the next tranche for the loan package.
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