ECC approves hike in prices of 18 drugs

• The ECC of the Cabinet approved an increase in the prices of 18 drugs.
• The ECC considered a summary of the Ministry of National Health Services.
• It also approved DPC recommendation to reduce MRPs of 20 drugs.

The Economic Coordination Committee (ECC) of the Cabinet approved an increase in the prices of 18 drugs, which also include most commonly used instant pain reliever Paracetamol.

Federal Minister for Finance and Revenue Mohammad Ishaq Dar presided over the meeting on Friday.

The ECC considered a summary of the Ministry of National Health Services, Regulations and Coordination and allowed fixation of maximum retail prices (MRPs) of 18 new drugs as recommended by the Drug Pricing Committee (DPC).

The prices of these 18 new drugs are at the lowest level, compared with the prices of the same medicines in the neighbouring countries, especially in India.

The ECC also considered another summary of the Health Ministry on MRP of Paracetamol products and approved the recommendation of DPC for the increase in MRP of Paracetamol products and fixed the price of 500mg plain Paracetamol tablet at Rs2.67 and 500mg Paracetamol extra tablet at Rs3.32. It also approved DPC recommendation to reduce MRPs of 20 drugs.

The Ministry of Energy (Power Division) presented a summary on refinancing of the Power Holding Limited’s debt and a surcharge to recover the mark-up payments.

The ECC also discussed and approved the proposal to recover Rs76 billion, while exempting non-ToU (Time of Use) domestic consumers having consumption of 300 units and the private agriculture consumers in four months period from March 2023 to June 2023, to recover the mark-up charges of PHL loans and allowed to impose additional surcharge of Re1/unit for FY23/24 to recover additional mark-up charges of PHL loans not covered through the already applicable FC surcharge.

The above surcharges will be applicable to K-Electric consumers to maintain uniform tariff across the country.

The committee also deferred PHL’s principal installments payable in respect of Rs283.287 billion for a period of two years from the date of execution of fresh facilities and directed the Finance Division to issue a government guarantee for the repayment of principle, as well as interest/fees, etc, for the fresh facilities of Rs283.287 billion.

It considered and approved the proposals contained in another summary of the ministry regarding the recovery of staggered fuel charges adjustment applicable for the months of August and September 2022.

The committee deferred the electricity bills for the month of September 2022 for commercial consumers in the flood-affected areas till the next billing cycle and waived the electricity bills for the months of August and September 2022 for the non-ToU domestic consumers having up to 300 units consumption.

It approved additional supplementary grant of Rs10.34 billion to cover the waiver of electricity bills in the flood-affected areas.

It also considered another summary of the Power Division and approved the revised circular debt management plan.

The committee considered and approved, in principle, a summary of the Finance Division on Kamyab Pakistan Programme and entrusted the State Bank of Pakistan (SBP) with the authority to validate the claims of the wholesale lenders after due diligence, due to non-existence of the programme management unit at the Finance Division.

The meeting also considered a summary of the Petroleum Division and granted approval for declaration of commerciality, field development plan and development and production lease for the period of five years with effect from January 25, 2022 over Jugan Field (Latif Block) to the United Energy Pakistan (UEP) Beta.

The ECC also considered another summary of the Petroleum Division and granted two years extension in the renewal in Missa Keswal development and production lease covering an area of 23.43 square kilometres in district Rawalpindi, Punjab with effect from April 11, 2022.

The ECC also approved, in principle, a technical supplementary grant of Rs450 million in favour of the Ministry of Defence.

Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Tariq Bajwa, Special Assistant to Prime Minister (SAPM) on Revenue Tariq Mehmood Pasha, SAPM on government effectiveness Dr Muhammad Jehanzeb Khan, Securities and Exchange Commission of Pakistan (SECP) chairman, federal secretaries and other senior officers also attended the meeting.

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