ECC approves up to 20pc hike in prices of medicines

ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet on Friday gave its approval for increasing the prices of medicines by up to 20 percent.

The decision was made during the ECC meeting held with Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar, a statement mentioned.

The ECC took up the Ministry of National Health Services, Regulations and Coordination summary seeking an increase in maximum retail prices of drugs based on the recommendations of policy board of DRAP in the wake of the devaluation of Pak rupee and inflation.

“To ensure continuous availability of drugs in the market, the ECC allowed as a one-time dispensation, allowed manufacturers and importers to increase their existing MRPs of essential drugs equal to 70% increase in CPI ( with a cap of 14% ) and MRPs of all other drugs and lower priced drugs an increase up to 70% in CPI (with a cap of 20%) on the basis of average CPI for current year i-e 1st July, 2022 to 01st April, 2023 with condition that it should be considered as annual increase for the financial year 2023-24 and no increase under this category will be granted in next financial year,” the statement read.

The ECC further 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 price decrease if Pak rupee appreciates its value.

Meanwhile, Ministry of Aviation submitted a summary on Challenges and re-opening of Roosevelt Hotel, New York and informed that PIA investment Limited (PIA-IL) management has got an opportunity offered by New York City Government to utilize the Hotel ( 1,025 rooms) over a period of three years for migrant business @ US$ 200 per room per day.

The ECC after discussion approved the recommendations of the Ministry and approved the formation of a four member negotiating committee led by the Secretary Aviation Division to negotiate with the New York City Government and the Hotel Union.

The ECC also allowed PIA-IL/ RHC to utilize the funds of $ 1.145 million from the available balance as bridge financing to commence the re-opening work at the Hotel.

The ECC considered and approved a summary of Ministry of National Food Security & Research regarding the fixation of Wheat procurement targets for the provinces of Sindh, Punjab, and Balochistan for Wheat Crop 2022-23 along with Cash Credit Limit. i. Govt of Sindh assigned procurement target of 1.400 MMT with procurement price of Rs. 4000/40 Kg. ii. Govt of Punjab assigned procurement target of 3.500 MMT with procurement price Rs. 3900/40 Kg. iii. Govt of Balochistan assigned a procurement target of 0.100 MMT with procurement price of Rs. 3900/40 Kg.

The ECC considered and approved Rs. 35 million additional funds as Technical Supplementary Grant in favour of Ministry of Interior for establishment of Passport Processing Centers (PPCs) at Tehsil level in 30 administrative units throughout the country and creation of 30 posts of MRP Operational officers in Department of Immigration and Passports, subject to approval of the Austerity Committee.

The ECC also approved Rs. 450 million in favor of Ministry of Interior as Technical Supplementary Grant to meet the Operational requirements of ICT Police regarding its liabilities and training of recruit.

The meeting was attended by , Federal Minister for Power Mr. Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Mr. Shahid Khaqan Abbasi MNA/Ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Mr. Musadik Masood Malik, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha, Coordinator to the PM on Economy Mr. Bilal Azhar Kayani, Federal Secretaries and other senior officers.

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