[Gazette of Pakistan, Extraordinary, Part-II, 3rd November, 2006]
S.R.O. 1103(I)/2006, – – – In exercise of the powers conferred by sub-section (1) of Section 43 of the Drugs Act, 1976 (XXXI of 1976) reads with clause (v) of sub-section (2) thereof, the Federal Government is pleased to make the following rules, namely,
1. Short title and commencement, – – – (1) These rules may be called the Drugs Discounts and Price Adjustment Rules, 2006.
They shall come into force at once.
2. Definitions, – – – In these rules, unless there is any thing repugnant in the subject or context,
(a) “Drug” means any drug registered with Ministry of Health Government of Pakistan.
(b) “Maximum retail price (MRP)” means the maximum retail price of a drug fixed by the Federal Government.
(c) “Retailers discount” means the discount to a licensed pharmacy or chemist calculated at the rate of fifteen per cent on maximum retail price printed on the pack of the drug which shall not exceed maximum retail price fixed by the Federal Government.
(d) “Trade discount” means the discount to a licensed distributor agent or a dealer by manufacturer or importer of the drug at a reasonable rate; and
(e) “Trade price” means the price after deducting retailers discount from the maximum retail price.
3. Scope of discount, – – – NO company or firm or proprietor shall allow a sum of all discounts, in cash, kind or both, exceeding forty per cent of the maximum retail price printed on the pack of the drug.
4. Method of price adjustment, – – – Every company or firm shall adjust the prices of its registered drugs: provided that- –
(a) Downward and upward adjustments of the drug prices shall take place with in the maximum retail price fixed by the Federal Government;
(b) The company or firm shall make upward or downward adjustments in prices, if they so desire, after the expiry of one year from the date of last adjustment;
(c) The Ministry of Health shall be informed in advance of the adjustment in prices and the effective date for such adjusted price; and
(d) There shall be no other change in the approved labeling of the drug.
5. De-registration of the drug, – – – The drug, the price of which is not fixed in accordance with these rules shall be de-registered after giving an opportunity of being heard to the concerned company or firm, as the case may be.