Government to Establish New Company for Pharmaceutical Imports

The Maldivian government has decided to establish a dedicated company to manage the import and distribution of pharmaceuticals in the country, according to Health Minister Abdulla Nazim Ibrahim.

He said this during an interview with Mihaaru news, reportedly.

Minister Nazim stated that the cabinet has approved the formation of a specialised company aimed at providing long-term solutions to ongoing challenges in the medicine supply chain. He confirmed that the new entity will be established without delay and will take over all responsibilities currently held by the State Trading Organisation (STO) in this area.

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At present, the import of pharmaceuticals by the government is primarily handled by the state-owned STO, with some medicines also brought in by private companies. This fragmented structure has led to occasional shortages and difficulties in accessing certain medications. The issue has been further exacerbated by recent price caps imposed by Aasandha on select drugs, resulting in some medicines being barred from entry and delays in the release of others.

In response to these challenges, STO has taken steps to address shortages. In May, the organisation signed an agreement with an Indian government-owned company under the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), or Jan Aushadhi scheme. The agreement aims to ensure the consistent and affordable supply of essential medicines in the Maldives.

Once the new pharmaceutical import company is operational, it will assume full responsibility for the import and distribution of medicines, according to the Minister.