Pakistan has approved an increase of up to 20% in retail prices of general medicines and 14% for essential ones, citing the need to tackle inflation. This decision has immediately come under fire from drug manufacturers, who have been demanding an across-the-board 39% rise, warning that the industry could collapse without it. The government's move follows a months-long standoff with importers and manufacturers, leaving many in the industry frustrated.

Pakistan's annual inflation rate hit 35% in March, largely due to a depreciating currency, a rollback in subsidies, and higher tariffs imposed to secure a $1.1 billion bailout package from the International Monetary Fund. Food inflation has soared to 47%, adding to the woes of the already struggling populace.

The government's decision to increase medicine prices has not been well-received, with critics saying that it will further burden the common man, who is already struggling to make ends meet. The Pakistan Pharmaceutical Manufacturing Association (PPMA) has criticized the increase, saying that it is way lower than what they had expected.

The finance ministry has said that the medicine prices could be reviewed again after three months if the Pakistani rupee appreciates, and has promised that "no increase under this category" will be granted in the next financial year. However, many in the industry remain skeptical and are calling for more support from the government.

The hike in medicine prices comes at a time when Pakistan is grappling with multiple challenges, including an acute balance of payments crisis, foreign debt obligations, and a struggling economy. The government is under immense pressure to find ways to boost revenue and reduce the budget deficit, but it remains to be seen whether this latest move will help or hurt the cause.

In the end, according to my opinion, Pakistan grapples with inflation, and the government must strike a delicate balance between the needs of its citizens and the interests of the pharmaceutical industry. While a rise in medicine prices may be necessary to prevent the industry from collapsing, it is equally essential to ensure that the public has access to affordable healthcare. Only time will tell whether the government's decision to increase drug prices will be enough to satisfy both parties.