ISLAMABAD: Pakistan is facing a shortage of essential medicines in the open market after the government imposed a 17 percent general sales tax on the import of raw material needed to manufacture lifesaving drugs, officials said on Thursday.
The shortage of medicines like paracetamol, panadol and azomax has come at a time when the country is facing the fifth wave of the coronavirus pandemic and its hospitalization rate has surged.
These medicines are also considered vital to treat COVID-19 patients displaying symptoms like fever, flu and sore throat.
Pakistan imports most of its pharmaceutical raw material from China which was not taxed in the past. However, the government imposed a 17 percent general sales tax on its import in January, promising that the amount would be refunded to the companies.
“The sales tax refund is a ploy by the government and will ultimately lead to an acute shortage of all medicines in the market,” Dr. Sheikh Kaiser Waheed, a former chairman of Pakistan Pharmaceutical Manufacturers Association, told Arab News.
Waheed said the shortage of raw material was already becoming problematic for the industry, contributing to the shortage of medicines in the market.
“This will create a black market, boost sales of spurious drugs and jack up prices,” he warned while urging the government to refund the whole sales tax at the import stage.
The Drug Regulatory Authority of Pakistan on Thursday advised the public against “overstocking medicines” at homes. It has also cautioned pharmacies, medical stores and wholesale distributors against stockpiling drugs at such a critical time.
“Any attempt at hoarding of drugs is a punishable offence and legal action will be initiated against perpetrators,” it said in a statement.
The authority acknowledged that the availability of paracetamol was currently under pressure due to higher than usual demand along with international disruption of the supply of its active ingredients.
“Availability is lower than usual despite a 13 percent increase in production of this tablet by leading manufacturer,” it said, hoping the raw material availability would improve in a few weeks.
The pharmaceutical manufacturers on the other hand are planning to stage protest demonstrations from the coming week to push the government to either withdraw sales tax, refund it at the import stage or impose it on the end product to charge it from consumers.
“Our cost of raw material and shipping has increased five to six times in the last six months,” Qazi Mansoor Dilawar, chairman of Pakistan Pharmaceutical Manufacturers Association, said while talking to Arab News, adding the government was “unwilling to increase prices of medicines.”
“If the sales tax is not withdrawn, it will lead to further shortage of medicines and increase in their prices,” he added.
