The Iranian government says it is providing subsidized foreign currency to importers and producers of medicines to prevent the rise in prices, as the value of rial has taken a nosedive.
“The Health Ministry, the Central Bank of Iran, Ministry of Industries, Mining and Trade and the Islamic Republic of Iran Customs Administration have been working hard to supply importers with foreign currency at the lower price of 42,000 rials,” Health Minister Hassan Qazizadeh Hashemi said.
The dollar is now being traded at above 13,000, as per Sanarate.ir.
The Iranian pharmaceutical market is under the psychological impact of forex rate swings, which intensified after the US administration’s unilateral withdrawal from the nuclear deal.
The first round of sanctions has already been reinstated.
There is also public concern over a possible shortage in essential drugs, once the second round of sanctions is revived in November, even though food and medicines are reportedly not subject to sanctions.
According to the minister, about 70% of essential medicines for next year have been purchased, whereas reports from major drugstores across Tehran show that patients are facing difficulties in finding the medicines they need.
Deputy Health Minister Gholamreza Asghari said about $3.5 billion have been allocated for medicines, medical equipment and pharmaceutical raw materials.
“Importers have already received one-third ($1.1 billion) of the total budget,” he said.
“About $600 million in foreign currencies have been paid for importing medical equipment. Importers of raw material have also received $500 million worth of foreign currencies at the subsidized rate.”
Asghari noted that medicine import orders worth $700 million are in line to receive foreign currency [from the Central Bank of Iran].
Considering the allocations, the health minister said the prices of imported medicines not produced by local firms are expected to see no growth.
Data released by the Islamic Republic of Iran Customs Administration show that nearly 3,000 tons of medicines worth $399.8 million were imported into Iran during the first four months of the current fiscal year (March 21-July 22).
Iran imported a similar volume of medicines during the same period last year, whereas the value of imports was $442.1 million last year.
The data do not include import of pharmaceutical raw materials and medical equipment.
“Based on a new memorandum of understanding signed between the Health Ministry and the Islamic Republic of Iran Customs Administration, essential goods, especially medicines, will undergo customs clearance as soon as the ministry’s license is issued,” the head of IRICA, Foroud Asgari, has said.
Further cooperation has been planned between the two entities to resolve the current problems in the field of medicines and medical equipment after the US withdrawal from the Iran nuclear deal to deal with possible sanctions.
“The memorandum will develop solutions for problems that may arise for the pharmaceutical companies, medical equipment and pharmaceutical raw material importers in the future,” Hashemi said.
However, the minister confirmed that medicine prices have increased by 9% on average during the past few months.
“The government has permitted local pharmaceutical companies to increase prices by 9-12%, due to the rise in prices of raw materials, petrochemicals and printing,” the Health Ministry’s news website quoted him as saying earlier this week.
“Currently, there are 9,000 essential medicines that need to be procured at the government rate of 42,000 rials per dollar, but only 800 of them are on the list of the Ministry of Industries, Mining and Trade and the Central Bank.”
The Health Ministry has also banned the use of foreign medicines that have domestic counterparts, except for those that physicians prescribe because of the patient’s allergy or drug resistance.
