Sui Gas Ratio Analysis

PROBLEM:
“Prices of pharmaceutical products be deregulated to generate sufficient funds necessary to capture potential export markets and to fulfill the needs of Research and Development Facility.”
Introduction:
Pakistan’s Pharmaceutical Industry is considered to be a lead among the cheapest pharmaceutical industries around the globe. Since 2001, the government of Pakistan has strictly regulated the prices of all the drugs that are being manufactured and sold in the country. With rising interest rate, inflation rate and taxation by the government, the profit margin of such companies has reduced over the decade. The lack of subsidies being offered by the government has demotivated the pharmaceutical companies to spend a part of their profit margin on the much desired Research and Development facility.
Changing the perspective, the strict price regulation on pharmaceutical products and implementation of international standards of quality and packaging, makes the industry very much attractive for importation of cheap medicines. However, the low prices are restricting pharmaceutical companies to make potential profits from exports which can help the industry grow many folds. Most of the raw material is imported from different countries of the world. If rupee depreciates against the dollar, it raises the cost of raw material which adversely affects profitability of the local manufacturers.
To fear that the deregulation in prices will lead to an increase in the local drugs prices, only essential lifesaving drugs as recommended by the World Health Organization be regulated by the government. This is already being practiced in our neighboring countries.
Some importing countries require a certificate of prices from the exporting country to establish prices for imports. It harms the local exporters in Pakistan as the companies cannot charge more than the prices locally establish. Higher Prices certificates be allowed to exporters for exports so that the industry... [continues]

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