ECC approves hike in retail prices of paracetamol products

The Economic Coordination Committee (ECC) of the federal cabinet has approved the hike in prices of paracetamol products on the recommendations of the health ministry, ARY News reported on Friday.

Moreover, the committee approved the imposition of an additional surcharge of Rs1 per unit for FY 2023-24 to recover additional markup charges of PHL loans not covered through the already applicable FC surcharge.

The decisions were taken in an ECC session chaired by Finance Minister Ishaq Dar today.

The committee approved the price hike of the paracetamol products, whereas, it okayed the reduction of prices of 20 medicines.

READ: PARACETAMOL PRICE HIKE: HEALTH MINISTRY PRESENTS SUMMARY TO ECC

According to the state news agency, the ECC approved the recommendation of the Drug Pricing Committee (DPC) regarding the Maximum Retail Price (MRP) of paracetamol products.

After the increase, the new price of Paracetamol Plain Tablet 500 mg was fixed at Rs2.67 and Rs3.32 for Paracetamol Extra Tablet 500 mg.

It was learnt that the ECC allowed the fixation of maximum retail prices (MRPs) of 18 new drugs as recommended by Drug Pricing Committee (DPC).

The prices of the 18 new drugs are at the lowest as compared to the prices of the same drugs in neighbouring countries, especially in India.

READ: MEDICINE PRICES LIKELY TO BE INCREASED BY 350PC

Ministry of Energy (Power Division) presented a summary of the refinancing of Power Holding Limited’s debt and a surcharge to recover markup payments.

The ECC approved the proposal to recover Rs76 billion while exempting non-ToU domestic consumers having consumption equal to 300 units and private agriculture consumers in four months period from March 2023 to June 2023 to recover the markup charges of PHL loans.

It allowed imposing the additional surcharge of Rs1/unit for FY 2023-24 to recover additional markup 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 tariffs across the country.

The committee deferred PHL’s principal instalments 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 repayment of principal as well as interest/fees, etc for the fresh facilities of Rs283.287 billion.

The ECC considered and approved the proposals contained in another summary of the Ministry of Energy (Power Division) regarding the recovery of staggered Fuel Charges Adjustment applicable for the months of August and September 2022.

Other decisions

The ECC 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 off electricity bills for the months of August and September 2022 for the non- ToU domestic consumers having = 300 units consumption.

The ECC also approved the additional supplementary grant of Rs. 10.34 billion to cover the waiver of electricity bills in flood-affected areas.

The committee considered another summary of the Ministry of Energy (Power Division) and approved the Revised Circular Debt Management Plan.

The ECC considered and approved in principle a summary of the Finance Division on the Kamyab Pakistan Program and entrusted the State Bank of Pakistan (SBP) to validate the claims of wholesale lenders (WLs) after due diligence, due to the non-existence of Program Management Unit (PMU) at Finance Division, the state news agency reported.

The committee considered a summary of the Ministry of Energy (Petroleum Division ) and granted approval for the declaration of commerciality (DOC), Field Development Plan (FDP) and Development and Production lease (D&PL) for the period of five years w.e.f. 25th January 2022 over Jugan Field (Latif Block) to M/s United Energy Pakistan (UEP) Beta.

The ECC also considered another summary of the Ministry of Energy (Petroleum Division) and granted two years extension in renewal in Missa Keswal Development and Production Lease (D &PL) covering an area of 23.43 sq km in district Rawalpindi, Punjab w.e.f. 11th April 2022.

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