The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration circulated the instruction on 2083/04/19 after receiving a request from the Ministry of Industry, Commerce and Supplies. The initiative is linked to the government’s administrative reform action plan and seeks to ensure that medicines included in the state’s free medicine distribution programme are produced by Nepal Aushadhi Limited and Singhadurbar Vaidyakhana, with necessary coordination from federal, provincial and local authorities.

The Industry Ministry’s correspondence says public entities can make purchases from another public institution under applicable procurement provisions and asks for arrangements so government bodies can purchase medicines produced by Nepal Aushadhi Limited. It also calls for the financial and technical support needed to increase production of listed free medicines. Nepal Aushadhi Limited informed the ministry that procurement for the current fiscal year has already begun and that its production and supply schedule will be prepared according to purchase orders received from government agencies.

The attached government reform workplan identifies domestic production of free medicines as a priority task. It calls for coordination among the Department of Health Services, Ayurveda and Alternative Medicine authorities, Nepal Aushadhi Limited and Singhadurbar Vaidyakhana so that listed medicines can be manufactured and supplied through public institutions. The measure is aimed at improving medicine availability while strengthening government-owned pharmaceutical production capacity.

Local governments have therefore been asked to provide the necessary coordination and facilitation when procuring medicines covered by the free-distribution programme, in line with the government decision and prevailing procurement rules.