As the prices of drugs produced in Nepal cannot be adjusted, there is a problem in the operation of the industry. It is said that due to the abundance of imported medicines, the domestic industries could not get the cost price and some of the products had to be discontinued.

According to the former president of Nepal Pharmaceutical Manufacturers Association, Jinarayan Bahadur Chhetri, the prices of more than 30 types of drugs have been the same for 17 years.  'Even though the price of Indian drugs of the same type that comes in open form in Nepal is higher, the drugs produced here have to be sold cheaply. Other products also have the same problem.' According to him, businessmen are forced to sell these drugs below cost price.

During 17 years, former president Chettri says that the price of medicine did not increase due to the increase in the price of land, the price of raw materials, bank interest, the price of packaging, the wages of manpower, etc. due to having to buy in dollars.

Although the prices of drugs are adjusted from time to time in the neighboring country of India, he said that the industries are in crisis due to the inability to adjust the prices here for a long time. Along with this, the industry here has been hit by the drugs coming from abroad openly. A few years ago, the government tried to ban the import of 30 types of self-sustaining medicines, but it was said that it was unsuccessful.  

'How can the industries here survive when more than 10 Nepali industries produce medicines from outside?' Mahesh Pradhan, president of Nepal Pharmaceutical Manufacturers Association, questions. He analyzes that the industry here is collapsing due to non-adjustment of drug prices for 17 years, allowing domestic industry to bring drugs from abroad, having to pay up to 56 percent customs duty on imported materials when setting up an industry, and lack of government concessions in any area.

He said that out of the 83 pharmaceutical industries operating in Nepal, nine have been closed. Out of the 83 that have started production, they are producing only at half capacity," he said. "More than 20 industries are now in crisis. The condition of the industry which is said to be operating well is not good.'

He complained that the government did not pay attention to the fact that the situation of the pharmaceutical industry was complex and he repeatedly told the Minister of Health, Finance and Industry and stakeholders.

Vaccines, except for some drugs including insulin, all others are produced in Nepal . Producers say that more than 80 percent of Nepali products will be used if the import of medicines produced here is stopped from abroad. 

Now there is a 50 percent indigenous medicine market . It is in decreasing order . He says that since the establishment of Nepal's industry has been operating according to the standards of the World Health Organization, it can compete with the world market in terms of quality. When setting up such industries, an investment of at least Rs. 800 million is usually made in one industry. About 70 percent of which are bank loans.