Health allocation cut by 16% despite growing needs

ISLAMABAD: Amid rising health challenges, the federal government has slashed the overall allocation for the Ministry of National Health Services, Regulations and Coordination (NHSR&C) by nearly 16 per cent for the fiscal year 2025-26 compared to the previous year.

According to official budget documents, the combined non-development and development budget for the ministry has dropped from Rs54.87 billion in FY 2024-25 to Rs46.10 billion in FY 2025-26 — a cut of Rs8.77 billion. The current, or non-development, expenditure for NHSR&C has seen a moderate increase, rising from Rs27.86 billion last year to Rs31.75 billion in the new fiscal year. This increase largely covers salaries, allowances, administrative operations, and recurring costs required to maintain existing health services and staff.

Out of this, employee-related expenses alone account for Rs12.65 billion, while Rs16.58 billion has been allocated for operating expenses, including routine institutional functions. Additionally, grants, subsidies, and the procurement of physical assets also account for notable shares of the non-development budget, with Rs1.2 billion allocated for grants and Rs552 million for physical assets and equipment.

Despite the increase in operational allocations, the government has drastically cut the Public Sector Development Programme (PSDP) budget for the health ministry.

The development expenditure has been slashed from Rs27 billion in FY 2024-25 to just Rs14.34 billion in FY 2025-26, reflecting a reduction of almost 47 per cent. This cut is particularly concerning as it could directly impact the government’s ability to initiate or complete vital infrastructure projects, expand hospitals, establish new medical facilities, and strengthen disease surveillance and response systems.

For the fiscal year 2025–26, the federal government has allocated a total of Rs14.343 billion under the PSDP for the NHSR&C. The allocation is distributed across 21 ongoing and new development schemes aimed at strengthening healthcare infrastructure, disease prevention, and medical education in the country. Among the most significant allocations, the Jinnah Medical Complex and Research Centre, Islamabad, has received the largest chunk of the development budget, amounting to Rs4 billion.

The Prime Minister’s Programme for Prevention and Control of Hepatitis C has been allocated Rs1 billion, while two major expansion projects in Islamabad—the Cancer Hospital and Critical Care Facilities—have received Rs900 million each.

Similarly, Rs1.7 billion has been earmarked for the establishment of a cancer hospital in Islamabad.

Other notable projects include the strengthening and up-gradation of cardiology and pathology departments at the Federal Government Polyclinic Hospital, Islamabad, which has been allocated Rs500 million, and Rs295.270 million earmarked for the strengthening of point of entries of Pakistan.

Additionally, Rs364.7 million has been allocated for the establishment of four BHUs in Islamabad, and Rs100 million for the establishment of an infectious disease laboratory. The National Health Support Project for Federating Areas has also been allocated Rs500 million.

Overall, these allocations reflect a focus on expanding healthcare access in Islamabad, combating infectious diseases, and improving critical care capacity, although the total development budget remains significantly lower than the previous year. Officials and health sector experts have voiced concern that the steep decline in the development budget reflects a worrying trend, where operational and administrative expenses continue to grow while investment in public health infrastructure, human resource development, and disease control initiatives is being deprioritised. The country continues to face a complex set of healthcare challenges, including a rising burden of non-communicable diseases such as diabetes, cardiovascular disease, cancer, and mental health conditions. Moreover, infectious diseases like tuberculosis, hepatitis, and HIV/AIDS persist as major public health concerns, compounded by drug stockouts, poor diagnostic capacity, and insufficient treatment facilities. With population growth and urbanisation accelerating demand for health services, stakeholders believe that the state must substantially increase its investment in preventive and curative healthcare over the coming years.