KABUL: Afghan officials on Sunday said a recent deal inked with Indian tycoon Dr. B. R. Shetty will help re-establish the country’s major pharmaceutical manufacturing sector.
The Afghan government signed the deal with BRS Ventures, a holding company belonging to UAE-based Indian tycoon Dr. B. R. Shetty, on July 25, over two state-run hospitals in Afghanistan.
It is the first time that such a major deal involving the private sector has been struck with the Afghan government on health services, Dr. Abdul Qadir Qadir, head of policy and planning of the public health ministry told Arab News.
The pharmaceutical manufacturing sector will be revived as part of this deal, which had halted operation for more than two decades during the civil war, he said.
Described as a private-public partnership, Dr. Sher Ahmad, another senior ministry official told Arab News that the deal does not seek to completely privatize the health sector in Afghanistan where medical services have touched their lowest ebb due to the prolonged war, pushing Afghans to spend around $285 million every year on medical treatment overseas.
“The standard and quality of health services provided by the government has not been satisfactory because we do not have sufficient resources,” Qadir said.
“That is why we signed this memorandum of understanding with BRS to form a partnership that offers good services, has good equipment, and better doctors,” he added.
According to the deal, BRS will invest in refurbishing and extending one of the main hospitals in Kabul, Wazir Akbar Khan Hospital, which currently has over 200-bed capacity, he said.
It will also operate in Sheikh Zayed Hospital in southeastern Khost that has a capacity of 100 beds. The total amount of BRS’ investment was not immediately disclosed.
New and advanced equipment will replace the existing gadgetry, the officials said. The existing hospital staff will be retained and patients will start paying once the two hospitals become fully functional and the refurbishment is complete, the officials added.
The government’s share of income will be spent on equipment and for providing free services to underprivileged patients, Qadir said.
“The aim, both of BRS’ and ours, is not to make money, but to offer quality service to the people and stop the flight of nearly $250 million which the Afghans spend each year overseas on treatment,” said Qadir.
