Budget crunch threatens free healthcare services

RAWALPINDI: A funding gap in Punjab’s health budget has placed the free medicines programme at Rawalpindi’s three major public hospitals under serious pressure, after the facilities were left with liabilities running into millions of rupees owed to vendors.

According to details reported, the Punjab government’s policy of providing medicines free of cost to patients at public hospitals has been fully enforced in emergency departments, outpatient departments and hospital wards. However, the budget released for medicines has fallen far short of the hospitals’ stated requirements, while spending on medicines, surgical supplies and medical gases has continued to rise beyond allocated amounts.

The three hospitals together sought Rs3.8 billion for medicines for the financial year 2025-26, but the Punjab Health Department released only Rs1.1 billion. The shortfall has led to mounting dues payable to contractors and vendors supplying medicines, surgical equipment and medical gases.

As a result, the continuation of the system under which patients receive medicines entirely free of charge has come under threat.

Hospitals face growing liabilities

Hospital sources said Holy Family Hospital (HFH), the city’s largest medical facility, had requested Rs1.5 billion for medicines but was provided Rs400 million. Benazir Bhutto General Hospital (BBGH) also sought Rs1.5 billion, yet received only Rs380 million.

All three government hospitals in Rawalpindi have accumulated substantial liabilities because available funds have not matched actual expenditure under the free treatment policy. The unpaid amounts relate to supplies already provided by contractors and vendors for medicines, surgical items and medical gases.

The provincial government’s policy guarantees free medicines for patients visiting emergency departments, OPDs and admitted wards in public hospitals. While hospitals have implemented that policy in full, the financial burden has increased as procurement costs have exceeded the sums allocated in the budget.

The situation has raised concerns over whether the current model can continue without additional financial support. With liabilities increasing and allocations remaining below demand, the hospitals are facing difficulty sustaining uninterrupted supplies under the free medicines programme.

The report specifically identified the three major public hospitals in Rawalpindi as being affected by the budget shortfall, with their combined request and the amount released by the Punjab Health Department showing a significant gap between need and funding.