A drugstore in Iran

Iran's Pharmaceutical Industry In ‘Crisis’

Sunday, 03/17/2024

Mahmoud Najafi Arab, the head of the Tehran Chamber of Commerce, has sounded the alarm over the dire state of Iran's pharmaceutical industry, declaring it engulfed in crisis.

He attributed the situation to the Central Bank's contract system in the field of medicine currency supply, exacerbating capital shortages across various industries, including pharmaceuticals.

Arab highlighted the plight of numerous pharmaceutical companies struggling to meet their financial obligations, particularly in paying employees' salaries and end-of-year bonuses.

“These challenges stem from the same capital scarcity affecting all sectors, further deepening the crisis in the pharmaceutical industry,” he noted.

The repercussions of the crisis are far-reaching, with the pharmaceutical sector heavily reliant on government-allocated hard currency for importing raw materials. 

Shortages have disrupted the production of essential medicines, raising widespread concerns among pharmaceutical companies.

Local media reports indicate a scarcity of common medicines and crucial drugs essential for hospitals amid global sanctions, intensifying the healthcare crisis.

Iran's economic woes, exacerbated by a plethora of sanctions, have strained the government's capacity to allocate foreign currencies.

With inflation hovering around 50 percent, Iran faces a complex economic predicament directly impacting the healthcare sector and citizens' well-being.

Amid Iran's deteriorating healthcare system, the nation's muscular dystrophy support association cautioned in December that numerous Iranians afflicted with the disease have been compelled to seek sanctuary overseas for access to complimentary medical treatment.

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