Government to establish company for medicine imports

The government has decided to establish a dedicated company to handle the import of medicines, to resolve ongoing issues in the pharmaceutical supply chain.

Health Minister Abdulla Nazim Ibrahim confirmed the decision in an exclusive interview with Mihaaru News today, stating that the Cabinet has approved the formation of a state-owned company specifically tasked with importing and distributing medicines across the country.

Currently, State Trading Organization (STO) manages the bulk of medicine imports. However, a significant portion of the pharmaceutical market is controlled by private companies, often leading to procurement delays and shortages. This issue had worsened recently due to the reduction in medicine prices.

These price adjustments have led to the discontinuation of some drugs and limited their availability under the government’s Aasandha scheme.

STO has recently begun addressing these issues.

“With the establishment of this new company, all responsibilities currently handled by STO in the medical supply sector will be transferred,” said Minister Nazim.

“We expect the company to be operational soon and believe it will bring a lasting solution to medicine shortages.”

STO signed an agreement earlier in May with an Indian government-owned company under India’s Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) to ensure consistent and affordable access to essential medicines.

The new initiative underscores the government’s broader strategy to stabilize the healthcare supply chain and improve access to affordable medications across the country.