Iran maintains preferential currency for medicines despite gradual reduction

Iranian officials have clarified that while a gradual reduction of preferential currency for medicines has begun, a complete removal of these subsidies is not currently on the agenda for this year.

Mehdi Pirsalahi, head of the Food and Drug Organization, stated that the policy of gradual reduction started at the beginning of the year through cooperation with the Central Bank and the Plan and Budget Organization. This process has already affected certain medicines, such as insulin, and has begun to impact the procurement of raw pharmaceutical materials. Pirsalahi noted that the difference in funds is being redirected to the ‘Daruyar’ scheme to mitigate impacts on patients and does not expect a significant change in final drug prices.

Mehrdad Lahouti, a member of the Parliament's Program, Budget, and Accounts Commission, noted that out of $8.8 billion in government foreign exchange income this year, $3 billion was allocated to medicines, maintaining the preferential currency method. Lahouti expressed personal opposition to the total removal of these subsidies, noting that the Minister of Health and President Masoud Pezeshkian are also opposed. He anticipates that the government is unlikely to propose the removal of preferential currency for medicines in its upcoming budget bill due to parliamentary opposition.