Pakistan’s healthcare system is at a critical juncture. Faced with persistent challenges like widespread disease, inadequate infrastructure, and a surging population, the nation’s financial commitment to health is under intense scrutiny. The recently unveiled Pakistan Health Budget 2025-26 presents a complex picture of increased allocations for some key programs, yet a stark reduction in the core federal health ministry’s budget. This scenario sparks both hope and concern for millions of citizens across the country.
The Numbers Game: Incremental Gains Amidst Significant Cuts
The combined federal and provincial allocation for health in the Pakistan Health Budget 2025-26 stands at Rs. 612 billion (approximately $2.2 billion), marking a 17.7% increase from the previous fiscal year’s Rs. 520 billion. This indicates a rise to 1.2% of GDP from 0.9% in 2024-25. While this appears to be a positive step, it remains a far cry from the World Health Organization’s (WHO) recommended 5% of GDP for health spending. Comparatively, regional neighbors like India (1.8%) and Bangladesh (2.3%) also allocate a larger proportion of their GDP to healthcare.
Intriguingly, the federal health budget for the Ministry of National Health Services, Regulations, and Coordination (NHSR&C) has experienced a significant cut. Its allocation has dropped by 16%, from Rs. 54.87 billion in 2024-25 to Rs. 46.10 billion for 2025-26. This reduction is largely attributed to a nearly 47% slash in the Public Sector Development Programme (PSDP) for health. This highlights a crucial distinction: while certain broad health initiatives may see increased federal funding, the central ministry responsible for health infrastructure and long-term development faces a tighter purse.
Key Allocations: Where the Money Goes in Health Budget 2025-26
Despite the federal ministry’s reduced share, several critical programs are set to receive substantial boosts, primarily through federal health spending:
- Sehat Card Plus Expansion: This flagship health insurance program receives a significant Rs. 30 billion, a 50% increase from 2024-25. The aim is to extend free healthcare coverage to an additional 15 million families, bringing total coverage to approximately 80% of the population. Notably, Sehat Card Plus will now include crucial mental health and cancer treatments, a major step forward for comprehensive care.
- New Hospitals & Upgrades: A federal allocation of Rs. 25 billion is earmarked for hospital infrastructure. This includes funds for the construction and equipment of 10 new tertiary-care facilities in regions like Karachi, Lahore, Quetta, Peshawar, and Gilgit. It’s important to clarify, however, that official budget documents suggest these are primarily allocations for ongoing projects rather than entirely new schemes initiated in this budget cycle.
- Pakistan’s First “Mental Health Fund”: A groundbreaking Rs. 5 billion fund is dedicated to mental health programs. This aims to establish depression and anxiety clinics and launch critical awareness campaigns, addressing a long-neglected area of public health.
- Emergency Polio Eradication Push: Following new polio cases in 2024, Rs. 8 billion is allocated for urgent vaccination drives to intensify eradication efforts.
- Digital Health Revolution: Initiatives such as telemedicine hubs in rural areas and pilot projects for AI-powered diagnostics in five major cities signal a forward-looking approach to healthcare delivery.
Provincial health budgets collectively stand at Rs. 460 billion, with Punjab leading at Rs. 220 billion, focusing on rural health centers and mother-child care. Sindh continues its Hepatitis C elimination program with Rs. 130 billion, while KPK allocates Rs. 80 billion for trauma centers near the Afghanistan border. Balochistan, with Rs. 30 billion, emphasizes mobile health units for its remote populace.
Lingering Challenges: The Road Ahead for Health Budget 2025-26
While the budget brings some positive changes, the healthcare sector continues to grapple with severe systemic issues:
- Persistent Underfunding: Even with the increase, the 1.2% of GDP allocation remains critically low. This gap impacts the quality and accessibility of public healthcare facilities, leading to overcrowding and a reliance on expensive private care for many.
- Doctor & Nurse Shortages: Pakistan faces a severe shortage of medical professionals. Current data indicates approximately one doctor for every 751 people, falling short of WHO’s recommended 1:1,000 ratio. Furthermore, the budget includes no major hiring plans, exacerbating the staffing crisis.
- Sehat Card Fraud Risks: The Auditor General’s 2024 report highlighted Rs. 12 billion embezzled in previous health insurance schemes, raising serious concerns about the integrity and transparency of the expanded Sehat Card Plus program.
- Private Sector Dominance & Affordability: With 70% of healthcare privatized, essential treatments remain unaffordable for a large segment of the population, deepening health inequalities.
- Medicine Costs: Despite rising inflation, with medicine prices surging over 30% in 2024, the budget lacks robust drug price controls, making essential medications inaccessible to many.
Expert Opinions and Public Expectations
Experts like Dr. Sania Nishtar, former Health Minister, commend the mental health fund but warn that “systemic corruption could derail progress.” The Pakistan Medical Association (PMA) echoes concerns, stating, “Without hiring more doctors, new hospitals will just be empty buildings.” Meanwhile, a 2025 World Bank Report suggests Pakistan must double its health spending by 2030 to meet Sustainable Development Goals.
Citizens, therefore, must demand greater accountability. Transparency in Sehat Card spending, increased investment in rural health workers, and strict drug price controls are paramount. The Pakistan Health Budget 2025-26 is indeed a step forward in certain areas, but its ultimate impact hinges on rigorous implementation, effective oversight, and a sustained commitment to addressing deep-seated systemic flaws. Will this budget truly bring tangible improvements to the lives of ordinary Pakistanis? Only time, and diligent execution, will tell.
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