The Economic Coordination Committee (ECC) of the federal cabinet has approved a second 20% hike in prices of essential medicines within three months to ensure continuous availability of drugs in the market. This decision has made the prices of these medicines unaffordable for poor people due to soaring inflation.
The ECC allowed manufacturers and importers to increase their existing maximum retail prices (MRPs) of essential drugs by up 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 the average CPI for the current year.
The Ministry of National Health Services, Regulations and Coordination presented a summary on increasing the maximum retail prices of drugs based on the recommendations of the Policy Board of DRAP in the wake of the devaluation of the rupee and inflation.
The ECC advised the Policy Board to review the situation in July 2023 and make its recommendations to the federal government regarding price decrease if the rupee appreciates its value.
Furthermore, the ECC approved the fixation of wheat procurement targets for the provinces of Sindh, Punjab, and Balochistan for wheat crop 2022-23 along with cash credit limits. The ECC also approved additional funds of Rs. 35 million as a technical supplementary grant in favor of the Ministry of Interior for the establishment of Passport Processing Centers (PPCs) at the 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 the approval of the Austerity Committee.
The 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 the New York City Government to utilize the hotel over a period of three years for migrant business at US$ 200 per room per day. The ECC approved the recommendations of the ministry and formed 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.
