Pakistan allocates Rs. 53.29 billion to health and hospital services for FY 2026–2027

The Government of Pakistan, through the Finance Division under Secretary Imdad Ullah Bosal, has finalized the federal

Islamabad: The Government of Pakistan, through the Finance Division under Secretary Imdad Ullah Bosal, has finalized the federal budget for the fiscal year 2026–2027, earmarking a total of Rs. 53,286,267,000 for the Ministry of National Health Services, Regulations and Coordination and associated health services across other federal divisions. The allocations encompass both current and development expenditures aimed at strengthening hospital services, public health programs, and administrative operations.

Under Demand No. 079, current expenditure for the Health Ministry is set at Rs. 37,221,767,000, intended to cover salaries, operational costs, and day to day administrative expenses. Hospital services alone account for Rs. 28,725,954,000, reflecting a sharp increase from the 2024–25 actual expenditure of Rs. 23,052,025,000. Employee-related expenses are projected at Rs. 16,226,738,000, with officers’ pay totaling Rs. 3,682,539,000, staff salaries Rs. 2,786,002,000, and allowances Rs. 9,758,197,000. Operating expenses are budgeted at Rs. 18,370,802,000, with additional allocations for retirement benefits, grants, and repairs.

Development expenditure under Demand No. 118 is estimated at Rs. 16,064,500,000. Major components include hospital services (Rs. 6,537,505,000), public health services (Rs. 5,961,995,000), and health administration (Rs. 3,565,000,000), marking a substantial increase over the previous year. Significant capital outlays include physical assets at Rs. 5,063,388,000 and civil works at Rs. 3,326,192,000. The development budget also incorporates foreign aid of Rs. 1,300,000,000, an increase from the previous year’s Rs. 500,000,000, and a local currency component of Rs. 14,764,500,000.

The document also highlights additional health related allocations under other federal divisions. The Defence Division has allocated Rs. 2,152,500,000 for hospital services, while the Ministry of Religious Affairs budgets Rs. 53,500,000, and the Kashmir Affairs, Gilgit Baltistan, and States and Frontier Regions Division allocates Rs. 46,000,000 for health administration.

Analysts note that while the Health Ministry’s overall budget reflects growth in hospital and administrative spending, the proportion of development funds directed toward public health programs, equipment, and grants remains relatively modest, raising questions about the effectiveness of allocations in addressing nationwide healthcare challenges. Observers also highlight the sharp year on year fluctuation in expenditures, particularly the decline in certain development allocations in the revised estimates of the previous fiscal year, suggesting the need for stronger planning and fiscal discipline.