Federal health budget slashed by 16%, raising concerns over healthcare infrastructure

The federal government has reduced the budget for the Ministry of National Health Services, Regulations, and Coordination (NHSR&C) by nearly 16% for the fiscal year 2025-26, despite increasing health challenges in the country. 

The combined non-development and development budget for the ministry has been cut from Rs54.87 billion in FY 2024-25 to Rs46.10 billion in FY 2025-26, a reduction of Rs8.77 billion.

The non-development expenditure for NHSR&C has seen a moderate rise, increasing from Rs27.86 billion last year to Rs31.75 billion in the new fiscal year. This increase is mainly allocated to salaries, allowances, administrative operations, and recurring costs to maintain existing health services and staff. 

Employee-related expenses account for Rs12.65 billion, while Rs16.58 billion is allocated for operating expenses, including routine institutional functions. The ministry has also earmarked Rs1.2 billion for grants and subsidies, and Rs552 million for the procurement of physical assets.

However, the development budget has seen a drastic reduction. The Public Sector Development Programme (PSDP) budget for NHSR&C has been slashed from Rs27 billion in FY 2024-25 to Rs14.34 billion in FY 2025-26, a nearly 47% cut. 

This reduction is expected to limit the government’s ability to initiate or complete critical infrastructure projects, expand hospitals, and enhance disease surveillance and response systems.

For FY 2025-26, Rs14.343 billion has been allocated under the PSDP, which will be distributed across 21 ongoing and new development schemes. These projects aim to strengthen healthcare infrastructure, disease prevention, and medical education. 

The largest allocation, Rs4 billion, has been made for the Jinnah Medical Complex and Research Centre in Islamabad. The Prime Minister’s Programme for Prevention and Control of Hepatitis C has been allocated Rs1 billion, while the expansion of the Cancer Hospital and Critical Care Facilities in Islamabad has been allocated Rs900 million each.

Other key projects include the establishment of a cancer hospital in Islamabad (Rs1.7 billion), the strengthening and upgrading of cardiology and pathology departments at the Federal Government Polyclinic Hospital (Rs500 million), and Rs295.27 million for improving point of entries across the country. 

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

While these allocations focus on expanding healthcare access and improving critical care, the sharp decline in the development budget has raised concerns.