The Government of Pakistan on Friday approved an increase of up to 20% in medicine prices.
Rises in the retail prices of essential drugs should be capped at a maximum of 14%, and 20% for all other medicines, the finance ministry said in its statement.
The decision, taken in the cabinet economic coordination committee meeting, had been due for months to meet the demands of drug importers and manufacturers.
Inflation clocked in at 35% in March, fuelled by a depreciating currency, a rollback in subsidies and the imposition of higher tariffs to secure a bailout package of $1.1 billion from the International Monetary Fund.
Food inflation has risen to more than 47%, and even the wealthier professional class is making lifestyle changes to deal with rising prices.
The government had pushed back against the demands for higher medicine prices, fearing it would lose support months ahead of general elections.
