Pakistan: Amid a fragile economy and growing inflation in the country, the Pakistan government on Friday approved an increase of up to 20% in retail prices of general medicines and 14% for essential ones. According to Pakistani media, the move prompted immediate criticism from drug manufacturers who claimed the hikes were too small.
The Pakistani government's decision came after a protracted dispute with importers and manufacturers, whose associations had been asking for an overall 39% increase and threatening to shut down the sector if they didn't get their way, The Express Tribune newspaper reported.
Pakistan reels under inflation
Pakistan's annual inflation rate hit 35% in March, fuelled by a depreciating currency, a rollback in subsidies and the imposition of higher tariffs to secure a bailout package of USD 1.1 billion from the International Monetary Fund. Food inflation has soared to 47%, as per the report.
But the government had pushed back against the demands for higher medicine prices, fearing such a move would lose it support months before national general elections. The finance ministry said medicine prices could be reviewed again after three months if the Pakistani rupee appreciated, adding that "no increase under this category" would be granted in the next financial year.
ALSO READ: Shocking! Parents in Pakistan lock daughters’ grave | Read to know why
Pharmaceutical Manufacturing Association denounces increase
The Pakistan Pharmaceutical Manufacturing Association (PPMA) criticised the increase, which it said was way lower than it had expected. The media recently reported that as Pakistan continues to grapple with economic challenges due to a shortage of foreign exchange reserves, citizens find it tough to buy everyday essentials like flour, oil and gas.
Despite daily necessities such as gas, electricity, petrol and flour getting more and more out of reach or prohibitively expensive for the average person to acquire, the Pakistan Democratic Movement (PDM) government is hardly paying heed to the plight of the people, Pakistani media reported.
(With ANI inputs)
Latest World News
