Agreement on production of essential medicines

Jul 21, 2026 10:59 AM Merolagani



The Ministry of Health and Food Safety and the Nepal Ausadhi Limited (NAL) have signed an agreement to expand domestic drug production. NAL is a government undertaking which produces medicines.

As per the understanding, NAL will produce 36 types of essential medicines within the next two years. Currently, it is manufacturing 11 types of essential drugs.

Even the medicines for chronic diseases such as high blood pressure and diabetes will be produced after the agreement. The Ministry shared information that it would speed up necessary research and development, quality testing, production permits and technical preparations to materialize the plan. It will manage budget for the drug production and supply to the government health institutions.

The agreement has paved way for institutional procurement of medicines- the government health facilities will buy drugs from NAL. It will further make the government procurement more effective. The medicines produced by NAL will be ensured the national and international standards.

The initiative is taken in order to advance the government's long-term goal of promoting the domestic pharmaceutical industry with self-reliance in medicines. (RSS)




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