IMF proposes Pakistan to impose up to 18% GST on medicines

The prices of medicines are likely to rise in Pakistan after the imposition of the expected up to 18 percent General Sales Tax (GST) proposed by the International Monetary Fund (IMF), sources said on Tuesday. 

The development was shared by an official of the Ministry of National Health Services, Regulations and Coordination (NHS, R&C). 

The official, on a condition of anonymity, claimed that the government has proposed an up to 18 percent tax on medicines in the upcoming budget on the recommendation of the global lender.

He added that authorities have already deregulated the prices of thousands of non-essential medicines, which allowed pharmaceuticals to sell medicines at their own prices.

Sources in the finance department claimed that the additional tax on medicine prices is part of the recommendation suggested by the Fund to address the economic problems in Pakistan. 

Experts believed that the increase in medicines could significantly impact consumers at a time when medicine prices were already deregulated.

They added that the imposition of an 18 percent sales tax on medicine would make diabetes and hypertension medications out of reach as at least 33 percent of the adult population of Pakistan are diabetic, while 40 percent are suffering from hypertension.