Subsidized Foreign Currency: Bane of Pharma Industry

The Iranian government’s policy of granting subsidized foreign currency at the rate of 42,000 rials per US dollar to import pharmaceuticals and medical equipment is distorting the economic process and its furtherance will prove counterproductive, as it will impede the development of the industry. 
This was stated by the senior members of Health Economy Commission of Tehran Chamber of Commerce, Industries, Mines and Agriculture in a recent meeting to discuss the private sector’s opposition to the government’s subsidy policy.
“Since the beginning of the current Iranian year (March 21), the government has spent $1.1 billion on the import of pharmaceuticals, their raw materials and medical equipment,” Chairman of TCCIM’s Health Economy Commission Mahmoud Najafi-Arab cited government officials as saying.  
“Other expenses related to pharmaceutical industry such as imports of dietary supplements and medical devices should be covered through the export earnings of non-oil products traded on Nima, the so-called secondary FX market. The industry’s total annual expenses incurred in foreign currencies, either at the rate of 42,000 rials or Nima, are about $4 billion,” he said.