ISLAMABAD/KARACHI: Pakistan’s Federal Budget 2026-27 has placed the country’s health sector at the centre of public policy debate, with the government proposing billions of rupees for hospitals, medical infrastructure, disease-control programmes, medicine affordability and reproductive health products.
Budget documents and related official announcements show that the government has allocated approximately Rs53.3 billion for different health-related projects, including Public Sector Development Programme initiatives. The package includes funding for federal health schemes, specialised care facilities, research projects, hepatitis C elimination, diabetes prevention, infectious disease laboratory capacity and support for healthcare access.
However, the Pakistan Medical Association has warned that the budget still falls short of Pakistan’s most urgent health priorities, particularly maternal and child nutrition, disease prevention, primary healthcare, public health surveillance and medical workforce retention.
The result is a mixed picture: the budget contains several notable health-sector measures, including relief for pharmaceutical raw materials and the proposed removal of GST on contraceptives and sanitary pads, but health experts say the real test will be whether the spending pattern strengthens prevention and community-level care rather than concentrating resources mainly in visible infrastructure.
Rs53.3bn health allocation signals higher spending, but questions remain
The government has allocated Rs53.3 billion for different health projects in the proposed Federal Budget 2026-27, including development spending. Of this, Rs22 billion has been earmarked for the Ministry of National Health Services, Regulations and Coordination, with around Rs20.7 billion expected from local resources and Rs1.3 billion from foreign assistance.
The Public Sector Development Programme also reflects health-related priorities. The government has proposed an overall allocation of Rs24.3 billion for the health and nutrition sector, compared with the previous fiscal year’s initial health-sector allocation of Rs16.5 billion, which was later revised downward to Rs14 billion.
While the increase signals greater attention to health, the sector’s share remains limited when seen against Pakistan’s disease burden, rapid population growth, rising treatment costs and persistent weaknesses in primary care delivery.
National Health Services receives PSDP support
Under the federal PSDP, the National Health Services, Regulations and Coordination Division has been allocated funds for ongoing and new schemes.
These allocations include health-sector infrastructure, programme support and development initiatives that fall under the federal government’s mandate. The budget also places health within a wider national development framework that includes federal and provincial PSDP allocations.
For Pakistan’s health system, the main concern is not only the size of the allocation but how effectively funds are distributed between hospitals, preventive programmes, disease control, primary healthcare and community-based services.
Cardiac care and twin-city health infrastructure get major funding
A major component of the proposed health spending is directed toward specialised cardiac care and health infrastructure in the twin cities.
The budget includes Rs1.5 billion for cardiovascular research and disease-prevention work at the National Institute of Heart Diseases in Rawalpindi. An additional Rs1 billion has been earmarked for expansion and upgradation of the Armed Forces Institute of Cardiology and the National Institute of Heart Diseases, aimed at strengthening specialised cardiac services.
Cardiovascular disease remains one of Pakistan’s most serious public health challenges, making preventive cardiology, research, early diagnosis and treatment capacity important areas for investment. However, health professionals argue that cardiac hospitals alone cannot reduce the national burden unless linked with prevention, lifestyle-risk reduction, diabetes control, hypertension screening and primary-care referral systems.
Proposed medical city in Islamabad moves forward
The budget also includes funding linked to the proposed establishment of a medical city in Islamabad under the National University of Medical Sciences.
The allocation is intended to support the acquisition of land from the Capital Development Authority. If implemented effectively, such a project could expand specialised medical education, research, tertiary care and clinical capacity in the capital region.
However, PMA has cautioned that Pakistan’s health strategy should not become overly dependent on large-scale hospital and infrastructure projects while underfunding essential public health priorities.
Hepatitis C elimination and diabetes prevention remain key programmes
The National Health Services Division has also been allocated funding for major health programmes, including the Prime Minister’s National Programme for the Elimination of Hepatitis C and the National Programme for Prevention of Diabetes.
Both programmes address critical disease burdens. Pakistan carries one of the world’s heaviest hepatitis C burdens, with millions of people affected and many remaining undiagnosed. Hepatitis C is preventable and treatable, but elimination requires large-scale screening, safe injection practices, infection control, treatment access and sustained financing.
Diabetes prevention is equally important. Pakistan faces a rapidly growing diabetes burden, driven by urbanisation, sedentary lifestyles, unhealthy diets, obesity, limited screening and delayed diagnosis. Prevention programmes will need to reach beyond hospitals and include community awareness, primary-care screening and lifestyle interventions.
Infectious disease laboratory capacity receives attention
The budget also identifies the establishment of an infectious disease laboratory among federal health priorities.
This is significant because Pakistan continues to face repeated outbreaks and public health threats, including dengue, measles, Mpox risk, polio, tuberculosis, malaria, HIV/AIDS and viral hepatitis.
A stronger laboratory and surveillance network can help detect outbreaks earlier, guide response strategies and reduce the cost of delayed intervention. Public health experts have repeatedly stressed that disease prevention is more cost-effective than treating advanced disease after outbreaks have spread.
Customs duty relief on medicine raw materials may support affordability
One of the most important patient-facing measures in the budget is the abolition of customs duty on more than 100 raw materials used in the production of medicines for cancer and other diseases.
The measure is intended to reduce input costs for local pharmaceutical manufacturers and may help improve affordability of essential medicines if the benefit is passed through to patients.
For families dealing with cancer, chronic illnesses and long-term treatment needs, medicine costs often represent a major share of household healthcare spending. Lower duties on pharmaceutical raw materials could therefore support access, but implementation will be crucial.
Health advocates say the government will need to monitor whether manufacturers, distributors and retailers pass cost reductions to consumers. Without effective oversight, relief at the import or production stage may not automatically translate into lower retail prices.
GST exemption on contraceptives and sanitary pads could improve women’s health access
Another socially significant measure in the budget is the proposed removal of General Sales Tax on contraceptives and menstrual hygiene products, including condoms and sanitary pads.
These products were previously subject to 18 percent GST, increasing the cost for consumers. Removing the tax could improve affordability for low-income households and support access to reproductive health and menstrual hygiene products.
The move is particularly important in Pakistan, where family planning indicators remain weak, population growth remains high and access to reproductive health services is uneven. For many women, cost is not the only barrier to contraceptive use, but affordability is still a major factor, especially in poorer households.
Similarly, sanitary pads are essential health products, not luxury goods. Reducing their cost can help address period poverty, improve menstrual hygiene and support dignity, mobility and school attendance among girls.
Family planning is also a development priority
Pakistan’s population has surpassed 241 million, making it one of the world’s most populous countries. This demographic pressure affects healthcare, education, employment, housing, sanitation and food security.
Family planning is therefore not only a health issue but also a national development priority. Improved access to voluntary contraception can reduce unintended pregnancies, support birth spacing, lower maternal and infant health risks and help families invest more effectively in children’s nutrition and education.
The proposed GST exemption on contraceptives is a practical step, but experts say it must be combined with awareness, availability of services, trained providers, counselling and culturally sensitive outreach.
Menstrual hygiene tax relief addresses period poverty
The proposed removal of GST on sanitary pads is also being viewed as a positive step for women’s health.
Period poverty remains a serious but often under-discussed issue in Pakistan. When menstrual hygiene products are unaffordable, women and girls may use unsafe alternatives, face discomfort, miss school or work, and experience reduced participation in daily life.
Making sanitary pads more affordable can support menstrual health, education continuity and gender dignity. However, tax relief must be followed by market monitoring to ensure lower costs reach consumers.
PMA warns budget still misses prevention and nutrition priorities
Despite the budget’s health measures, the Pakistan Medical Association has expressed serious concern over what it describes as misplaced spending priorities.
According to PMA, Pakistan’s health security is being weakened by rising food insecurity, inflation, maternal and child malnutrition, disease-prevention gaps and the ongoing migration of doctors, specialists and nurses.
The association argues that the budget continues to favour hospital-based and infrastructure-heavy spending while underfunding preventive healthcare, public health surveillance, workforce development, disease control and nutrition programmes.
PMA has warned that Pakistan cannot build health security through tertiary-care expansion alone. Long-term resilience requires strong Basic Health Units, Rural Health Centres, community health workers, disease surveillance systems, nutrition support, maternal health services and better working conditions for healthcare professionals.
Child malnutrition remains one of Pakistan’s deepest health challenges
The nutrition crisis remains one of the most serious public health concerns in the country.
Pakistan continues to report high levels of child stunting and undernourishment. Stunting is not simply a short-term growth problem; it can affect cognitive development, school performance, lifelong health and future economic productivity.
Rising food prices have made balanced diets harder for low-income families. Proteins, milk, meat, eggs, fruits, vegetables, iron and essential micronutrients are increasingly difficult for many households to afford.
PMA says doctors are seeing the consequences in clinical settings, including low-birth-weight infants, malnourished mothers, underweight children and nutritional deficiencies that can produce lifelong harm.
Disease prevention spending remains a critical concern
The PMA has also raised concern over limited allocations for disease prevention and public health preparedness.
Pakistan continues to face simultaneous threats from communicable and non-communicable diseases. Dengue outbreaks, measles cases, polio transmission, tuberculosis, hepatitis, malaria, HIV/AIDS and emerging infections all require a strong public health infrastructure.
Disease surveillance, laboratory capacity, vaccination programmes, infection control, data systems and rapid-response teams are essential to preventing outbreaks from becoming national emergencies.
Public health experts argue that prevention should be treated as a core investment rather than a secondary expense. Every rupee spent on early detection and prevention can reduce later costs in hospitals, emergency response and long-term disability.
Healthcare brain drain threatens service delivery
Beyond allocations and projects, Pakistan’s healthcare system continues to face a worsening workforce challenge.
PMA says inadequate compensation, unsafe working environments, limited postgraduate training opportunities and rising living costs are pushing doctors, specialists and nurses to seek opportunities abroad.
This migration weakens public hospitals, increases workload on remaining staff and reduces access to specialist services, particularly outside major urban centres.
Retaining skilled healthcare professionals will require better pay structures, safer workplaces, transparent career pathways, postgraduate training expansion and dignity for healthcare workers.
Budget relief measures need strong implementation
Several budget measures could benefit patients and households if properly implemented.
Customs duty relief on pharmaceutical raw materials could reduce medicine costs. GST exemption on contraceptives and sanitary pads could support reproductive health, family planning and menstrual hygiene. Disease programmes could strengthen national health outcomes if adequately funded and monitored.
However, implementation remains the key concern.
Tax relief must reach consumers. Development funds must be released and utilised efficiently. Health programmes must be monitored through measurable outcomes. Preventive care must receive sustained financing rather than short-term project-based attention.
What the budget means for Pakistan’s health future
Budget 2026-27 presents both an opportunity and a warning.
On one hand, it includes important health-sector initiatives, including higher allocations, cardiac care projects, hepatitis C and diabetes programmes, infectious disease laboratory support, medicine raw-material duty relief, and tax relief for contraceptives and sanitary pads.
On the other hand, PMA’s warning highlights that Pakistan’s health crisis cannot be solved through infrastructure alone.
The country’s long-term health security depends on whether policymakers invest seriously in prevention, nutrition, maternal and child health, primary care, disease surveillance, affordable medicines, reproductive health and workforce retention.
As Pakistan enters the next fiscal year, the central question is whether health spending will remain focused on visible projects or shift toward a more balanced system that protects families before disease, malnutrition and financial hardship become irreversible.
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