The government has allowed to increase Paracetamol prices as it cannot offer any subsidy to the company or waive import duties on the raw material. Panadol is a drug used to relieve pain and reduce fever. The drug is high in demand in Pakistan post catastrophic floods and, dengue and malaria outbreak. The manufacturer stopped making the medicine, causing a shortage in the market while creating a medical emergency in the healthcare sector.
After the recent agreement, the price of a single Panadol tablet will be increased by 48-56 paisa while the price of a Panadol syrup bottle will be up by Rs. 12.8.
The government is already suffering financially and is discouraging import of raw material. It also has no budget for subsidy due to spending limitations imposed by IMF.
The new price hike is around 25.6% for tablets and 12% for syrup.
An official statement issued by the Finance Ministry stated that Ishaq Dar, Finance Minister, held meetings with the concerned authorities from the pharmaceutical industry to discuss the retail price of Paracetamol products.
The ministry has announced that the pharmaceutical companies have accepted the new prices of Paracetamol 500mg tablet to be Rs. 2.35/tablet, Paracetamol Extra 500 mg tablet to be Rs. 2.75/tablet and syrup at Rs. 117.6/bottle.
According to the ministry, the price hike is almost half of the increase the manufacturers have demanded. The companies have restarted the production of paracetamol after the announcement.
The proposed increase suggested by the Health Ministry was Rs. 1.87 for a Paracetamol 500mg tablet making it Rs. 2.67, around 43% (80 paisa) increase. However, the finance minister agreed to a 48 paise hike only.
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