Pakistan's Healthcare Crisis — Public Hospitals, Medical Tourism and the Struggle for Reform

ISLAMABAD — Pakistan's public healthcare system is facing a deepening crisis, with total health expenditure at just 2.9 per cent of GDP and public sector spending at a mere 0.9 per cent — well below the South Asian average of four per cent. Federal Minister for Health Mustafa Kamal admitted in November 2025 that the system is "far from ideal" and in a "state of decline."

Despite federal and provincial health budgets increasing from Rs530.8 billion in FY2019-20 to Rs1.4 trillion in FY2025-26, inflation has severely eroded the real value of these increases. Life expectancy stands at 68 years, nearly four years below the South Asian average.

Funding Cuts

International funding for health programmes is shrinking. In July 2025, the Global Fund reduced its grant by $27.2 million, primarily affecting tuberculosis control programmes. The cuts are expected to significantly affect district-level monitoring, community outreach interventions, diagnostic testing capacity, and workforce training programmes in Punjab and Khyber Pakhtunkhwa.

Hospital Conditions

In Hyderabad's Liaquat University Hospital, hundreds of patients requiring life-saving surgeries were affected for nearly a year due to the unavailability of consumables — despite a budgetary allocation of Rs275 million for 2025-26. A December 2025 Dawn report noted that public healthcare is "no longer about patients but about pay grades, career moves, and a temporary stop before going abroad" for many young doctors.

Provincial Reforms

Punjab Chief Minister Maryam Nawaz reported in April 2026 on six flagship health projects:

• Field Hospitals — Mobile medical units serving remote areas
• Clinics on Wheels — Outreach healthcare services
• Free Medicine Delivery — Home delivery of medicines for chronic patients
• Health Centre Revamp — 1,217 health centres revamped, with 895 more under construction
• Community Health Inspectors — Grassroots health monitoring system
• Stroke Management — Specialised programmes for stroke patients

Medical Tourism

Despite systemic challenges, Pakistan's medical tourism sector is growing. Patients from Afghanistan, Central Asia, and the Middle East are increasingly coming to Pakistan for affordable treatments — particularly in cardiology, orthopaedics, and organ transplants. Private hospitals in Karachi, Lahore, and Islamabad have begun marketing to international patients.

The Way Forward

Health Minister Mustafa Kamal stressed the need to shift from a treatment-based model to prevention, noting that 70 per cent of diseases are caused by contaminated water. Access to clean drinking water alone could drastically reduce hospital loads. The Public Sector Development Programme for 2025-26 did not include any new health schemes, with allocations only for ongoing projects.