Refusal to issue LCs may trigger medicine shortage, MPs told

• PPMA official tells NA panel that SBP has conveyed to banks to not open LCs for import of pharmaceutical Substances resulting from greenback scarcity.
• Official says most pharmaceutical firms have solely two months’ uncooked materials obtainable.
• PPMA official says Pakistan’s pharmaceutical trade reliant on imports and will get most of its components from overseas.

ISLAMABAD: The State Financial institution of Pakistan’s (SBP) refusal to situation letters of credit score (LCs) could set off a medication scarcity as native banks usually are not issuing the doc required for the import of uncooked materials and medical units resulting from greenback liquidity crunch, pharmaceutical producers have warned, as per The Information.

“The State Financial institution Pakistan (SBP) has verbally conveyed to all native banks to not open LCs for the import of Energetic Pharmaceutical Substances (API) resulting from scarcity of {dollars} within the nation. We have now the cash to purchase medicines’ uncooked materials from overseas however {dollars} liquidity crunch within the nation could end in scarcity of medicines in Pakistan within the weeks and months forward,” Arshad Mahmood, Chairman of Pakistan Pharmaceutical Producers Affiliation (PPMA), North Area, advised newsmen after attending the Nationwide Meeting’s Standing Committee on Well being assembly.

“A lot of the pharmaceutical firms have solely two months’ uncooked materials obtainable with them and they’re unable to put orders for the uncooked materials for the long run. If LCs usually are not opened quickly, it could end in medication shortages just like the scarcity of Panadol, which was not obtainable in most components of the nation.”

“The Panadol scarcity was as a result of worth situation however now we face double jeopardy as on the one hand costs usually are not being elevated whereas however, uncooked materials will not be being imported resulting from {dollars}’ unavailability with the central financial institution,” Arshad Mehmood added.

The North Area chairman of PPMA knowledgeable the lawmakers that Pakistan’s pharmaceutical trade was reliant on imports and will get most of its components from overseas.

Mahmood stated that the rupee’s devaluation, value of uncooked materials was consistently rising together with the price of manufacturing due to rising gas value, transportation fees and elevated wages.

The PPMA official added that not like different industries the costs of medicines have been managed by the state and producers and so they have been unable to extend them on their very own. A number of the important medicines usually are not being manufactured and usually are not obtainable within the native market as their value of manufacturing has develop into insufferable for producers, he added.

Convener of the Nationwide Meeting’s Standing Committee on Well being Nisar Ahmed Cheema claimed that pharmaceutical producers had agreed to offer medicines at 50% low cost to public well being services and hospitals within the nation, saying it was a giant aid for poor sufferers.

Praising the Drug Regulatory Authority of Pakistan (DRAP) and its Chief Government Officer (CEO) Asim Rauf for the supply of high quality medicines to the individuals of Pakistan, he stated the difficulty of costs and drug pricing coverage was being reviewed on the highest degree by the federal government however assured that no choice can be taken in opposition to the pursuits of the individuals.