Pakistan lifts import ban for Indian medicinal drugs

The Pakistan government has lifted a ban on Indian medicinal drugs and raw materials required for these drugs. The decision came after the pharmaceutical industry demanded to lift the ban, since there was a shortage of multiple drugs.

Pakistan has imported various vitamins as well as vaccines for diseases such as polio and tetanus. India has been supplying drugs to countries all around the world(HCQ dilema link) during the time of this pandemic.

The lift on import for drugs will help Pakistan since it was having a shortage of drugs and these essential goods. This will help the country fight other diseases while the pandemic is going on and this is important because it will help save lives, which will help increase the life expectancy of the people while also maintaining a healthy workforce which is important once the lockdown ends and people will have to go to work. The sale of these medicines will also pump revenue for the retailers in Pakistan, at a time when the aggregate demand and consumer confidence is low.

For India, the export of these drugs can help generate revenue for the pharmaceutical industry and help them pay the labours. The government will also generate revenue because of the tariffs placed on these goods. The Exports will be an injection to help increase the flow of income. Aggregate demand in India has been falling, mainly because people do not have money to buy goods and this injection would increase aggregate demand, although in a very small manner. However, the generation of revenue for the firms is very important as it will keep them running at time where they could have been forced to shut down due to bankruptcy. However, the export of drugs to Pakistan could lead to a shortage of drugs in India, even though it is less likely that the producers will sell more than what they have in surplus for India.

Moreover, the export of drugs can be seen as a gesture in hard times between the neighbours who have been fighting for Kashmir for more than 70 years. It sends a message that humanity coves over everything and India is willing to help. This could help reduce the tensions between the two countries which many people have been hoping for since a long time.

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