On December 5, 2022, the Council of Ministers requested $35 million per month for the next three months from Lebanon’s central bank. Such money would be used to subsidize the purchase of infant formula, medicine for incurable, chronic, and cancerous diseases, medical supplies, and raw materials for the pharmaceutical industry. The money would come from foreign exchange reserves and the aim is to lower their price and enable low-income consumers to buy them.
LIMS argued that infant formula and subsidized medicines have been cut off due to the government’s subsidies. Intermediaries purchase the supported drugs and formula and resell them outside the country or on the black market, before they reach those in dire need. Subsidies are hurting babies in need of infant formula and patients with incurable diseases. People end up buying dubious quality substitutes on the black market smuggled into Lebanon.
LIMS recommended lifting subsidies immediately and allowing pharmacies to sell the items at the market price to have them available once again. Then, if the government wishes to help babies and patients, funds could be directly allocated to the targeted population, rather than supporting imports, which end up benefiting smugglers and black-market dealers.
LIMS Media Interviews:
- Lebanese Institute For Market Studies Exclusive: Council of Ministers’ Decision Contributes To Disappearance Of Medicine And Infant Formula, December 6, 2022: LIMSLB, Article AR
- Will Humiliating Queues Return To Invade Bakeries? December 28, 2022: LIMSLB, Article AR
- “Lebanon Unable To Reform”…Mardini: It Is Illogical To Subsidize Fuel Because A Large Portion Is Smuggled, December 30, 2022: VDL, Article AR