ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet on Friday approved a maximum 20% increase in the prices of medicines in Pakistan.
The decision was made during a meeting of the ECC chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.
The Ministry of National Health Services, Regulations and Coordination submitted a summary seeking an increase in maximum retail prices of drugs based on the suggestions and recommendations of the policy board of DRAP in response to the devaluation of the Pakistani rupee and inflation.
The ECC allowed manufacturers and importers to increase their existing MRPs of essential drugs up to a 70% hike in CPI and MRPs of all other drugs and lower-priced drugs an increase of up to 70% in CPI (with a cap of 20%).
This increase is based on the average CPI for this year, July 1, 2022, to April 1, 2023, with the condition that it should be considered as an annual hike for the financial year 2023-24, and no increase under this category will be granted in the next financial year.
The committee advised the policy board to review the situation after three months, i.e., in July 2023, and make its recommendations to the federal government regarding a price decrease if the Pak rupee appreciates its value.
In addition to the approval for price hikes, the ECC also approved a proposal to re-open the Roosevelt Hotel in New York for migrant business by PIA Investment Limited (PIA-IL) at a rate of $200 per room per day. The forum approved the formation of a four-member talks committee to negotiate with the New York City Government and the Hotel Union. PIA-IL/RHC will utilize the funds of $1.145 million from the available balance as bridge financing to commence the re-opening work at the Hotel.
ECC approves summary regarding fixation of wheat procurement targets
Moreover, the ECC approved a summary of the Ministry of National Food Security and Research regarding the fixation of Wheat procurement targets for the provinces of Punjab, Sindh, and Balochistan for Wheat Crop 2022-23, along with a Cash Credit Limit. The government of Sindh assigned a procurement target of 1.400 MMT with a procurement price of Rs. 4000/40 Kg, the government of Punjab assigned a procurement target of 3.500 MMT with a procurement price of Rs. 3900/40 Kg, and the government of Balochistan assigned a procurement target of 0.100 MMT with a procurement price of Rs. 3900/40 Kg.
The ECC also approved additional funds of Rs. 35 million as Technical Supplementary Grant in favour of the Ministry of Interior for the establishment of Passport Processing Centers (PPCs) at the Tehsil level in 30 administrative units across the country and the creation of 30 posts of MRP Operational officers in the Department of Immigration and Passports, subject to the approval of the Austerity Committee. The ECC approved Rs. 450 million in favour of the Interior Ministry as a Technical Supplementary Grant to meet the operational requirements of ICT Police regarding its liabilities and training of recruits.
The ECC meeting was attended by Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Shahid Khaqan Abbasi MNA/Ex-prime minister, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, and SAPM on Revenue Tariq Mehmood Pasha.
