Federal govt allocates Rs15.34bn for 48 health projects under PSDP 2025–26

ISLAMABAD: The federal government has earmarked Rs15.343 billion for 48 health sector projects under the Public Sector Development Programme (PSDP) for the fiscal year 2025–26, reflecting its strategic focus on improving healthcare infrastructure, disease surveillance, preventive medicine, maternal care, and emergency preparedness across the country.

According to official budget documents reviewed by The News, this allocation —routed through the Ministry of National Health Services, Regulations and Coordination (MoNHSRC) — comprises 34 ongoing and 14 new development schemes. The funding is aimed at addressing critical healthcare gaps and strengthening the country’s ability to respond to existing and emerging health challenges.

One of the key new initiatives receiving a major share of the funding is the Centre of Excellence for Preventive Cardiovascular Research & Development (NEPCARD) at the National Institute of Heart Diseases (NIHD), Rawalpindi. This Rs4 billion project has been allocated Rs758.562 million for the current year. It aims to counter Pakistan’s growing burden of non-communicable diseases —particularly cardiovascular ailments— through dedicated research, early screening, and training of healthcare professionals.

Another noteworthy project is the construction of a 20-bedded hospital at Latifal in Chakwal district, Punjab. With a total cost of Rs1.02 billion, the government has allocated Rs55 million this year to initiate construction. This hospital will provide access to essential healthcare services in a region currently underserved by the public health system.

A number of additional projects are focused on strengthening hospital infrastructure and specialized services. These include the strengthening of the Maternal and Child Health (MCH) Centre at NIH in Islamabad, the enhancement of District Headquarters Hospital Hafizabad, and the establishment of Paediatric Oncology/Haematology Services at PIMS, Islamabad. Each of these facilities has received development allocations in this year’s PSDP and is aimed at improving the quality and scope of tertiary healthcare services.

The National Institute of Health (NIH), which serves as Pakistan’s premier public health institution, continues to receive significant support for multiple initiatives. Among these are the upgradation of laboratory facilities, the strengthening of the national disease surveillance system, and the establishment of the National Vaccine and Bio-Products Laboratory. These projects will help modernize public health diagnostics, support vaccine self-sufficiency, and boost Pakistan’s readiness to manage infectious disease outbreaks.

In response to lessons learned during the COVID-19 pandemic, the government has allocated Rs500 million for the development of a National Health Emergency Preparedness and Response Centre. This facility is envisioned as a national-level coordinating hub capable of overseeing public health responses to pandemics, climate-induced emergencies, and other disasters.

Family planning and maternal health continue to be areas of national focus. The Revamping of Reproductive Health Services in ICT and the establishment of a 50-bed Mother and Child Hospital in Rawat, Islamabad have received dedicated funds to reduce maternal and infant mortality and improve access to specialized healthcare for women and children.

Digital innovation in the health sector is also being supported through the launch of a Digital Health Governance and Integration project, which has received an initial allocation of Rs70 million. This project aims to enhance real-time health data systems, support telemedicine infrastructure, and strengthen the use of digital tools for health service delivery.

The Drug Regulatory Authority of Pakistan (DRAP) will continue to implement reforms to improve pharmaceutical regulation, including barcoding systems to counter fake medicines and strengthen the supply chain. While specific budget lines for these efforts are embedded within broader governance allocations, the government has reiterated its commitment to ensuring drug quality and public safety.

Some of the allocated funds are also expected to support cross-border health cooperation, particularly through the “Strengthening of EPI & Cross-border Coordination” project, which focuses on enhancing immunization and disease surveillance efforts in border regions with Afghanistan.

The Rs15.34 billion allocation for health in the federal PSDP, while moderate in scale, is designed to deliver targeted improvements in public health infrastructure, service delivery, and policy reform. Officials have emphasized that these projects are aligned with Pakistan’s Sustainable Development Goals—particularly SDG 3: Good Health and Well-being—and underscore the government’s intent to build a stronger, more resilient healthcare system.