The government has identified, at least, 25 pharmaceutical companies allegedly involved in production of substandard and spurious medicines.
Lists of those companies have been sent to the Drug Administration for taking stern action after conducting investigation, officials said.
Presently, around 164 out of 232 registered pharmaceutical companies are producing drugs in the country.
Ministry of Health and Family Affairs has asked the Drug Administration to take legal steps within two months against the companies, if found guilty.
Three companies -- and National Drugs --, however, have been found involved in irregularities. The ministry has asked the drug administration to take stern action against those companies within 15 days.
A government intelligence agency has found those companies involved in production and marketing of substandard medicines in the local market. Those companies are also depriving the government of its due revenue by evading value added tax (VAT).
"The intelligence wing of the Rapid Action Battalion (RAB), following investigation, has prepared a list of those companies and sent it to the authorities concerned for taking necessary steps," a senior official of health ministry said.
He said those companies mainly producing spurious antibiotic and paediatric drugs.
The Ministry of Health and Family Welfare in a recent meeting has decided to gear up its on-going efforts to identify the companies producing substandard medicines, he said.
A team of Drug Administration last week inspected drug stores at Mitford to find out spurious medicines and their producers, he added.
The RAB team identified that 25 companies were manufacturing medicines using less than the required questions of ingredients, he said.
"The government will implement the suggestions made by the RAB through coordinated efforts of public and private sectors," the official said.
Sources said the government has so far taken any meaningful action against fake and spurious medicine manufacturers despite an abundant supply of the same in the local market.
"A taskforce should be formed comprising officials of Drug Administration, National Board of Revenue (NBR) and law enforcing agencies to take action against these pharmaceutical companies and traders," it recommended.
The taskforce will take necessary steps against suppliers of substandard raw materials at Mitford, it said.
The government should ensure that the pharmaceutical companies follow good manufacturing practice (GMP) guidelines.
The intelligence agency also recommended that the government should make the VAT, tax and excise department more accountable.
Apart from taking actions against the errant pharmaceutical companies, the government will also have to patronise the pharmaceuticals companies that are manufacturing drugs of international standard and exporting those, it said.
Country earned US$ 28.15 million in 2006-07 fiscal exporting pharmaceuticals, government export data shows.
