Punjab govt releases Rs22bn to settle long-pending medical supply dues

After nearly two decades of unpaid dues, the Punjab government has released Rs22 billion in the first phase to clear long-overdue payments to medical supply contractors serving public hospitals across the province, according to a news report. 

This includes a significant allocation for four major hospitals in Rawalpindi that had accumulated outstanding debts for 19 years, severely disrupting the supply of essential medicines.

The Punjab Finance Department issued a notification confirming that a total of Rs491.783 million has been allocated for the four Rawalpindi hospitals. These hospitals had been unable to clear their contractors’ dues, leading to a halt in medicine supplies and, consequently, impacting patient care. 

In Lahore, the situation worsened as patients at government hospitals faced shortages of basic medicines. The non-payment of dues, which had been outstanding since 2005, sparked public outrage. 

In response, Punjab Chief Minister Maryam Nawaz intervened and was briefed about the scale of the unpaid dues. She instructed the Punjab Finance Department to release the funds in phases to address the issue.

Under the first phase, funds have been allocated to key hospitals in Rawalpindi. Holy Family Hospital has received Rs62.993 million, Rawalpindi Teaching Hospital Rs91.43 million, Benazir Bhutto General Hospital Rs43.983 million, and the Rawalpindi Institute of Cardiology Rs293.377 million. 

The release of these funds aims to alleviate the ongoing challenges caused by the non-payment and ensure the smooth supply of medicines across these hospitals.