Pharmaceutical and healthcare sectors also feel the effects of economic crisis – Pakistan

KARACHI: Pakistan’s economy and its people are facing a health crisis. With an economy burdened by high debt and riddled with tax measures that target the payment sectors, politics is seen as key to steering the country off a dangerous path.

But when it comes to the healthcare and pharmaceutical sectors – areas that developing countries are focusing on as they seek sustainable growth – experts lament a lack of attention and inconsistent policies.

Additionally, interest groups involved in smuggling and counterfeiting of medicines create additional problems.

Experts say Pakistan’s budget is a major setback for the struggling healthcare sector

In Pakistan, life expectancy is about 67 years, according to the latest Economic Survey, lower than in almost all partner countries. The average in South Asia is 71.6.

The research report, Healthcare in Pakistan: Navigating Challenges and Building a Brighter Future, published in 2023, stated that the solutions to Pakistan’s “stumbling and threatened healthcare system” are adequate financial support and infrastructure development. The paper also discusses several other challenges facing the vital sector in Pakistan.

Arshad Rahim, a former pharmaceutical executive, said Pakistan has one of the lowest healthcare budgets in the world. At less than 2% of GDP, it is lower even when compared to regional or comparable countries.

For context, Bangladesh allocates 5% of its GDP to health. According to the World Health Organization (WHO), the health budget should be at least 6% of GDP.

Rahim stressed that the country’s healthcare sector is in urgent need of preventive and health-promoting measures, as well as healthier lifestyles.

Rahim also stressed the importance of dispensing high-quality medicines prescribed by doctors, as was done under the Sehat Sahulat card, which allowed patients to access medicines through a card.

“It needs to be resumed,” he insisted.

Rahim has held several management positions including CEO of Wyeth Pakistan. He also served as a member of the Policy Board of the Drug Regulatory Authority of Pakistan (DRAP).

He stressed the availability of good quality medicines, as poor quality medicines ultimately cost patients more.

He concluded that the future of the country depended on the health of its people.

Rahim also pointed out the gaps or leaks in the economy that need to be addressed. The saved funds should be directed to areas that can bring positive change to people’s lives.

“However, practical solutions need to be proposed. Where will the money come from to improve the quality of the healthcare sector? The government should focus on unprofitable state-owned enterprises and turn them around.”

Former Pakistan Pharmaceutical Manufacturers Association (PPMA) chairman Tauqeer Ul Haq also emphasised the need for the government to focus more on the healthcare sector.

He stated that it is the government’s duty to intervene and support disadvantaged groups in society.

The research article mentioned earlier also states that most life-saving drugs are too expensive for people to afford.

“(From time to time) there is a shortage of medicines on the market,” the newspaper added.

However, Haq noted that government intervention was necessary.

“The government provides subsidy for various basic things. There should also be subsidy for the poor to buy medicines. The government should provide free or at least subsidised medicines through government hospitals,” he said.

He added that the government had offered such support in the past but it has now almost been abandoned due to cases of budget shortfalls.

An industry representative suggested that health cards issued under government insurance should be valid nationwide.

The former president was also disappointed with the budget, especially considering the fact that the government increased taxes on various items related to the health sector.

Many experts point to the importance of the pharmaceutical and healthcare sector as key to tangible and intangible benefits. Transfer of skills and technology, as well as qualified personnel, are important features of the industry.

However, inconsistent government policies and high level of intervention forced many players to exit the Pakistani market.

It has further been argued that Pakistan lacks international agreements and cooperation, which limits its market access and export potential.