By Asif Shahzad
ISLAMABAD (Reuters) – Pakistan on Friday approved an increase of up to 20% in medicine retail prices, with the rise for essential drugs capped at a maximum of 14%, the Finance Ministry said on Friday, as decades-high inflation grips the country.
The decision, taken in the cabinet economic coordination committee, had been due for months to meet the demands of drug importers and manufacturers.
Inflation clocked in at 35% in March, fuelled by a depreciating currency, a rollback in subsidies and the imposition of higher tariffs to secure a bailout package of $1.1 billion from the International Monetary Fund.
Food inflation has risen to more than 47%, and even the wealthier professional class is making lifestyle changes to deal with rising prices.
The government had pushed back against the demands for higher medicine prices, fearing it would lose support months ahead of general elections.
(Reporting by Asif Shahzad; Editing by Andrew Heavens and Nick Macfie)
