Federal Cabinet Raises Concerns Over Pricing of Locally Manufactured Vaccines
Members of the federal cabinet have expressed serious concerns over the pricing of locally manufactured vaccines and monopolistic practices of pharmaceutical companies. The government has agreed to provide a buyback guarantee for these locally produced vaccines.
During a meeting chaired by Prime Minister Shehbaz Sharif on Saturday, the cabinet approved the National Policy for Advancing Indigenous Vaccine Production in principle. However, it also formed a Committee on National Policy for Advancing Indigenous Vaccine Production to recommend pricing strategies for locally manufactured vaccines.
The committee will examine factors determining local vaccine production costs and potential pricing issues arising from the new policy’s implementation. It will also study international best practices for pricing vaccines to prevent excessive profiteering by the proposed National Vaccine Alliance, a group of pharmaceutical firms responsible for indigenous vaccine production once the draft policy is implemented.
Minister for National Health Services Mustafa Kamal stated that high production costs, particularly research and development expenses, deter pharmaceutical companies from producing vaccines without incentives. He suggested forming alliances among several companies to achieve economies of scale and ensure profitability.
The minister also noted that under the draft National Policy for Advancing Indigenous Vaccine Production, the alliance’s vaccine pricing would be regulated by the Drug Regulatory Authority of Pakistan (DRAP), which will ensure public access to affordable vaccines in compliance with WHO standards.