Hidden rent | Exchange rate liberalization Pharmaceutical companies’ demand for government / drug exports halved

According to the economic correspondent of Fars News Agency, the annual decline of 20% in the value of drug exports from the country is an alarm that has been sounded for at least the last three years. Pharmaceutical industry activists are pushing for a liberalization of the exchange rate in the sector, but according to one of the directors of the Trade Development Organization of Iran, some reports indicate that drug trafficking is occurring at 5 to 6 times the value of official exports.

The chairman of the board of the Syndicate of Human Drug Owners announced a 50 percent decrease in drug exports in 1999 compared to the previous year, and announced that the main demand of pharmaceutical companies and exporters in this sector was exchange rate liberalization.

Mohammad Abdozadeh, who announced this news in the seventh session of the Health Economics Commission of the Tehran Chamber, reminded that due to the use of government currency in a part of the active ingredient of pharmaceutical products, the export of the manufactured product will not be allowed.

According to him, pharmaceutical companies must also make a written commitment that they will return the currency from the export of the drugs produced for which they have received a preferred currency for the raw materials.

Abdozadeh then cited excessive restrictions on drug exports by the Food and Drug Administration and the Ministry of Health as leading to a drop in the sector’s exports, saying: “According to statistics, drug exports halved last year compared to the previous year.” It reached about $ 50 million, which is a very small amount compared to the import of raw materials and medical equipment.

The chairman of the board of directors of the Syndicate of Owners of Human Drug Industries, added: “Drugs have benefited from the currency of 4200 Tomans until today, and if the government decides that drugs are still subject to preferential currency, government currency should be allocated to purchase machinery and equipment of pharmaceutical factories.” Be.

According to him, the continuation of the process of allocating 4200 Tomans to medicine and not supplying the machines needed by the production units of this sector, will definitely lead to the bankruptcy and future closure of pharmaceutical companies.

Abdozadeh stated that the government and the parliament should help the country’s pharmaceutical industry as soon as possible, and the delay in this case will have unfortunate consequences for this industry and the country.

In this regard, Aliar Ismaili, director of the Knowledge-Based and Drug Desk of the Trade Development Organization, announced a 20 percent annual decline in drug exports over the past three years, saying that drug exports reached $ 72 million in 1997, up from $ 98 million in 1998. And $ 99 million, $ 57 million and $ 45 million, respectively. This year, too, it is predicted that the value of drug exports will not grow and, in the most optimistic case, will be equal to last year’s exports.

He said that tasteful clashes by some agencies, especially the Food and Drug Administration, threaten the export of drugs, adding: “The Trade Development Organization seeks to immediately pursue the issue of facilitating the export of drugs and in this regard, seek to receive We are a resolution of the leaders of the three powers to facilitate this section.

According to the official of the Trade Development Organization, the restrictions and prohibitions of the Food and Drug Administration on the export of medicine have led to the intensification of drug smuggling from the country, and some reports show that the amount of drug smuggling from the country is 5 to 6 times the dollar value of official exports.

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