Myanmar regime tightens rules on importing pharmaceuticals

Myanmar’s military junta has imposed new restrictions on the import of pharmaceuticals in an effort to shore up the country’s dwindling foreign currency reserves, according to industry sources. Under the new rules, which went into effect on September 1, pharmaceutical importers must repatriate export earnings in order to receive an import licence. The restriction was set by the regime’s Foreign Exchange Supervisory Committee, led by General Mya Tun Oo. The Ministry of Commerce announced the move in a notice sent to the Myanmar Chamber of Commerce for Pharmaceuticals and Medical Devices on August 28. The notice also stated that import licence applications submitted online through the TradeNet 2.0 system would no longer be accepted. According to the notice, 116 pharmaceutical companies that received licences under the system in October of last year will have to reapply. The total value of these licences is US$104 million. A representative of a Yangon-based pharmaceutical import and export company, who requested anonymity, confirmed the authenticity of the notification and indicated that the new restrictions might lead to a shortage of medicines in the market. “This could make it more difficult for large pharmaceutical companies and those involved in importing medicines,” she said, noting that the new requirement applies not only to imports purchased with US dollars, but also to those paid for in Chinese yuan and Indian rupees. While the junta’s restrictions might reduce foreign currency expenditures, traders say they will likely result in shortages of imported goods that could lead to price increases. “There is already a shortage of pharmaceuticals, and the market prices for these products have risen significantly,” said the pharmaceutical company representative. A Yangon-based economic analyst suggested that the junta’s actions underscore the depth of its foreign currency crisis. “They are clearly running low on foreign currency. Exports need to be conducted before imports can happen,” he said. “But the new system is complicated, and medicine shortages might increase, leading to more black market activities.” Since the military coup in February 2021, nearly all imports have required a licence issued in advance. Previously, applications for licences to import essential drugs were approved within two weeks. Now, however, the process can take months, and is not always successful. Pharmaceutical distributors report that due to the junta’s foreign currency controls, the shortage of medicines has worsened. About 90% of the country’s medicine needs are met through imports. Some essential medicines, such as insulin for diabetics, have become difficult to find, with remaining stocks running low. Certain popular brands are no longer available at all, according to a pharmacist in Pindiya, Shan State. He also mentioned that medicines believed to be produced by Chinese companies are entering the market, but their quality is reported to be poor. More than three years after seizing power, the junta is increasingly isolated, facing not only widespread domestic resistance, but also an array of international sanctions. The value of the national currency, the kyat, has plummeted since the coup, driving up prices for everything from energy to consumer goods.

Myanmar regime tightens rules on importing pharmaceuticals

The new rules, which come amid a worsening shortage of essential medications, are aimed at slowing the depletion of the junta’s foreign currency reserves

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