In continuing stand-off with government, Pakistani pharma union calls for price hike of 262 drugs

Pharmacy employees wearing facemasks as a preventive measure against the COVID-19 coronavirus attend to customers in Islamabad on March 23, 2020. (AFP/File)
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Updated 11 December 2023
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In continuing stand-off with government, Pakistani pharma union calls for price hike of 262 drugs

  • Pakistan in April approved rise of up to 20 percent in retail prices of general medicines and 14 percent for essential ones
  • Associations have been demanding an across-the-board 39 percent rise, warning that the industry could otherwise collapse

KARACHI: The Pakistan Pharmaceutical Manufacturers Association (PPMA) on Monday called on the federal government to allow an increase in the prices of 262 medicines, the latest in a stand-off with an industry struggling to stem losses from soaring inflation and a weakened currency.

Since June, local and multinational companies have been lobbying the government to raise prices through industry lobby groups like the Pharma Bureau and the PPMA.

Pakistan last approved a rise of up to 20 percent in retail prices of general medicines and 14 percent for essential ones in April, prompting immediate criticism from drug manufacturers who said the increases were too small. Associations have been demanding an across-the-board 39 percent rise, warning that the industry could otherwise collapse.

In its statement on Monday, PPMA said a delay in the price hike would mean “more essential drugs wouldn’t be available in the local market.”

“Revision in prices of these medicines had become highly essential as the last time such an increase had been allowed by the government the value of the dollar was less than Rs 200,” PPMA Central Chairman Mian Khalid Misbah-ur-Rehman was quoted in the statement as saying.

On Monday, the dollar was worth Rs281.75 for buying and Rs284.75 for selling, according to the Exchange Companies Association of Pakistan.

 “In addition to the phenomenal increase in the dollar exchange rate, the production cost of medicines has increased manifold due to record inflation,” Rehman said.

Pakistan’s weekly inflation rate spiked to the highest level in six months in the week ending on December 7, driven by surging food and fuel prices, as per data released by the government.

Rehman warned that more multinational drug producers would be forced to wind up their businesses if the government kept delaying the decision to allow an increase in the prices of medicines.

“The number of multinational pharmaceutical companies in Pakistan has already significantly decreased over the past many years as any further reduction in their number will go against the current efforts of the government to attract foreign investment to Pakistan,” the PPMA chairman said.

Data from the statistics bureau released in March showed the pharma industry had cut overall output by 55 percent since June 2022.

Over 100 essential drugs were already unavailable in the market, Rehman added:

“The patients in such a scenario rely on spurious and smuggled drugs when the locally produced medicines aren’t available in the market.”

PPMA said the sustainability of the Pakistani pharmaceutical industry, which met up to 95 percent demand for medicines in the country, would be “seriously threatened” if the government didn’t review its drug pricing system.

“We have been constantly calling upon the government to pay heed to the ground realities affecting the drug producers in the country as the long-pending hardship cases of medicines should be expeditiously disposed of as per the law,” the PPMA chairman said.

Pakistan’s annual pharmaceutical exports stand at around$300 million, which Rehman said could be increased to $5 billion if the government “consistently implements favorable policies for the drug industry allowing it to adopt state-of-the-art production technologies.”


Arabian Sea fishing surges as Karachi cold snap lifts seafood demand, prices

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Arabian Sea fishing surges as Karachi cold snap lifts seafood demand, prices

  • Winter fishing pushes boats deeper into the Arabian Sea as larger species dominate catches
  • Seafood exports rise 22 percent as Pakistan taps seasonal demand to boost foreign earnings

KARACHI: As winter temperatures dip unusually low in Pakistan’s southern port city of Karachi this month, demand for seafood has surged sharply, driving up prices across markets and restaurants and sending fishermen deeper into the Arabian Sea in search of prized seasonal catches.

Karachi, typically known for its mild winters, has recorded temperatures as low as 8.1 degrees Celsius in recent days, spurring heavy footfall at the city’s famed Keamari Seafood Street, where diners crowd open-air eateries for barbecued fish, fries and spicy karahi dishes.

Industry stakeholders say the colder weather has triggered a seasonal spike in seafood consumption, with demand rising by as much as 90 percent, particularly for larger winter species that are also sought by export markets.

Out at sea, fishermen also say winter brings a distinct change in both catch and income.

“The launches chase big fish that include ribbonfish, king mackerel, pomfret and mostly ribbonfish in this season,” said a 70-year-old fisherman at Ibrahim Hyderi harbor who only gave his first name, Adam.

“Summer brings species like prawns and kiddy shrimp to waters off Karachi and Gwadar coasts.”

“In winter, the demand for squid as well as other big fish remains very high. They sell well and fetch good rates for us,” added Adam, whose family has been fishing since 1970 and operates six launches.

He is among more than 100,000 registered fishermen affiliated with Pakistan’s Fishermen’s Cooperative Society (FCS), many of whom brave foggy winter seas to supply both domestic markets and export processors.

EXPORT AND PRICE HIKES

Pakistan’s marine fisheries sector contributes roughly one percent of GDP and earned $253.2 million in exports during July–December FY26, a 22 percent increase from a year earlier, according to the ministry of maritime affairs.

The export growth comes as Pakistan, grappling with external financing pressures, seeks to boost foreign exchange earnings.

“This season our seafood exports have crossed $250 million, and will hit the $600 million target for this year,” said Irfan Ahmed, in-charge at Ibrahim Hyderi harbor for the FCS.

Pakistan exports frozen fish, sardines, king mackerel, squid, ribbonfish, pomfret, flatfish species, shrimps, prawns, cuttlefish, fish meal and crabs, with China, Saudi Arabia, the United Arab Emirates, Thailand, Malaysia, Japan, the European Union, Vietnam, Kuwait and the United States among its major buyers.

“The demand for seafood shoots up [in winters] and therefore we at Fishermen’s Cooperative Society’s fisheries department facilitate the launches at our harbor to go and fish as much as possible,” Ahmed said.

At retail markets, the seasonal rush has translated into steep price increases.

“In this winter season, our demand has increased about 90 percent,” said Azam Khan, a fish retailer at Keamari Seafood Street.

The surge has pushed prices sharply higher, he said.

Seabream now sells for Rs1,200 ($4.30) per kilogram, up from Rs700 ($2.50) in summer.
King mackerel has risen 50 percent to Rs1,650 ($5.90) from Rs1,100 ($3.90).

White pomfret has doubled to Rs3,000 ($10.70) from Rs1,500 ($5.40), while red snapper has climbed 120 percent to Rs2,200 ($7.90) from Rs1,000 ($3.60).

“Normally, the price of Red Snapper is Rs1,000–900 per kilogram ($3.2). Right now, the price of Red Snapper has doubled,” Khan said.

“Everything has gone pricier,” he added, referring to Pakistan’s broader inflationary pressures.

RESTAURANTS PACKED

Despite rising prices, seafood restaurants report booming business, especially on cold weekend nights.

“In winter, people come with their families, and they only think about eating seafood like red snapper, seabream, javelin grunter, black pomfret, white pomfret and white barracuda fish,” said Muhammad Rashid, owner of Rashid Seafood, one of Pakistan’s largest seafood restaurant chains.

Rashid said his sales this season have risen by around 80 percent.

“Earlier at Keamari food street, people only had two fish to eat: tigertooth croaker and bartail flathead,” he said.

“Now, we provide the people all types of fish that exist in the sea.”

Asked about winter favorites, Rashid said:

“People like barbequed fish and prawn karahi the most. In barbequed fish, people like red snapper and black pomfret.”

Pakistan’s main seafood season runs from November through February, and traders say demand typically eases as temperatures rise and Ramadan approaches.

“The season is about to end. Ramadan is about to begin,” Rashid said. “I would like to add one more dish. It is called Tandoori Fish.”