Budgetary Initiatives To Boost Medicine and Health Industry

Health experts have expressed their worries about the proposed budget for the health sector in Bangladesh, stating that it will further increase out-of-pocket health expenditure, placing a greater burden on the population. They fear that a significant number of people may fall into poverty due to the high cost of healthcare services. The government has allocated Tk 380.52 billion (5.0% of the total budget) for the fiscal year 2023-24, a slight decrease from the previous year. However, experts argue that the allocation falls short of addressing the need for additional funding to reform the health sector after the Covid-19 pandemic.

The proposed budget for the 2023-24 fiscal year has raised concerns in the healthcare sector as there is a reduction in developmental spending, which could increase the burden on patients. The health sector allocation has been reduced to approximately 5% of the national budget, down from 5.4% in the previous fiscal year.

Bangladesh Export Import Company (Beximco) Limited has achieved a 'Double B Plus' surveillance rating in the long term and 'ST-Four' in the short term, as certified by Emerging Credit Rating Limited (ECRL). This rating is based on Beximco's audited financial report for the fiscal year 2021-22, which ended on June 30, as well as the unaudited financial report for the first three quarters of the current fiscal year 2022-23, along with other relevant qualitative information up to the date of the rating's publication.

Indo-Bangla Pharmaceuticals Limited experienced a significant 91.65% decrease in profit, amounting to Tk 11.62 lakh, during the third quarter of the current financial year. In comparison, the company had earned a profit of Tk 1.39 crore in the same quarter of the previous year, 2021-22. The unaudited financial statements reveal that the earnings per share (EPS) for January-March 2022-23 stood at Tk 0.01, as opposed to Tk 0.12 in the corresponding quarter of 2021-22.

Public health activists have called for the provision of free treatment at government hospitals and health facilities twice a day by specialist physicians. In a views exchange meeting held in the capital, activists also demanded the cancellation of user fees at government hospitals. The meeting, chaired by the Janashasthaya Sangram Parishad convener criticized the government's decision to commercialize government hospitals and introduce the private practice in the afternoons under the guise of specialized treatment.

The Insurance Development and Regulatory Authority (IDRA) has authorized life insurance companies in Bangladesh to provide comprehensive health insurance policies, breaking the monopoly held by non-life insurers. In a recent circular, IDRA formalized this decision, opening up opportunities for market competition and potentially reducing policy costs. Previously, only non-life insurers were permitted to offer health insurance policies with short-term durations. However, with the latest circular, life insurers are now allowed to design, price, and sell medical products in the market.