Supreme Court Directs Govt to Decide New Drug Prices Within Four Weeks
The Supreme Court of Pakistan has instructed the federal government to decide on new drug prices within a period of four weeks. This directive comes after the court expressed dissatisfaction with the functioning of the Pakistan Drug Regulatory Agency (DRAP), which it believes operates in collusion with pharmaceutical companies.
Background of the Case
The issue began when the Ministry of Health issued a statutory regulatory order (SRO) on December 31, 2018, setting the maximum retail price (MRP) of 889 medicines. As a result, the prices of 395 drugs were reduced, while the prices of 464 medicines were increased, and the prices of 30 medicines remained unchanged. However, the pharmaceutical industry responded by increasing the prices of some drugs by 100% to 500%.
In response to the backlash, the government announced on May 4, 2019, that it would reverse the hike in drug prices. A private pharmaceutical company subsequently filed a petition against the reduction in drug prices, which was heard by a bench comprising Chief Justice Gulzar Ahmed and Judge Ijazul Ahsan.
Court Proceedings
During the hearing, the lawyer representing the private pharmaceutical firm argued that the government was violating a Supreme Court order to reduce drug prices. The lawyer claimed that the Monitoring Commission had frozen prices at the 2013 level. However, Chief Justice Gulzar Ahmed clarified that the court had not issued such an order.
A Supreme Court bench, comprising three judges, had previously directed DRAP on August 4, 2018, to resolve all pending cases related to drug prices within 10 weeks. The government was also instructed to fix current prices for all drugs pending a decision on cases related to the freezing of medicines.
DRAP’s Role and Functioning
Chief Justice Gulzar Ahmed observed that drug regulators are very powerful in the world, but DRAP operates in collaboration with pharmaceutical companies. He noted that DRAP continues to fluctuate with drug prices, indicating a lack of effective regulation.
A DRAP official appearing before the bench claimed that the agency was trying to control drug prices. However, he took exception to the Chief Justice’s comment that DRAP was being run by alternates, stating that “no one works with place-level deputation in the DRAP.”
Government’s Response and Next Steps
Justice Ijazul Ahsan questioned why the government needed so much time to fix drug prices. The Chief Justice noted that DRAP should be able to determine drug prices within a day. Judge Ahsan also asked whether the government had decided on the price of medicines based on the recommendation of a relevant task force.
The Additional Attorney General (AAG) informed the bench that the government had received recommendations from the task force but had not yet decided on them. The AAG claimed that the Drug Price Committee (DPC) has no authority to set drug prices.
However, the Chief Justice pointed out that the task force also had no legal basis. He stated that the DPC is responsible for controlling drug prices, but the government had formed a task force on the advice of the DPC. The bench ultimately ordered the federal government to set drug prices within four weeks, adjourning the hearing of the case.
FAQs
- Q: What is the current status of drug prices in Pakistan?
A: The prices of 395 drugs were reduced, while the prices of 464 medicines were increased, and the prices of 30 medicines remained unchanged, as per the SRO issued on December 31, 2018. - Q: What is the role of DRAP in regulating drug prices?
A: DRAP is responsible for regulating drug prices, but the Supreme Court has observed that it operates in collaboration with pharmaceutical companies, indicating a lack of effective regulation. - Q: What is the next step in the case?
A: The federal government has been directed to decide on new drug prices within four weeks, as ordered by the Supreme Court.
The Supreme Court’s directive to the government to decide on new drug prices within four weeks is a significant development in the case. The government’s response and the subsequent decisions will have a significant impact on the pharmaceutical industry and the prices of medicines in Pakistan.
