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Pakistan's healthcare collapse: Funds crunch pushes Rawalpindi hospitals to brink of total medicine shutdown

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Rawalpindi | June 1, 2026 5:24:08 AM IST
The provision of free medications for patients across three major state-run healthcare facilities in the garrison city is on the verge of a complete breakdown next month, exposing the severe administrative collapse and financial bankruptcy of the Punjab Health Department, which has failed to release critical funds for the sector, Dawn reported.

The brewing healthcare crisis highlights the intensifying governance failure in Pakistan, where state-run medical facilities are being pushed to the brink of paralysis due to empty government coffers and systemic mismanagement.

"Holy Family Hospital (HFH) Satellite Town, Benazir Bhutto Hospital (BBH) Murree Road, and Rawalpindi Teaching Hospital (RTC) Raja Bazaar had demanded a PKR 4.5 billion budget for the fiscal year 2025-26. However, the Punjab government released PKR 2.5 billion and promised to provide the remaining amount of PKR 2 billion in May 2026. It has not released the amount so far, and vendors have refused to provide more medicines without being paid," said a senior official of HFH while talking to Dawn.

Illustrating the sheer negligence of the authorities, the official revealed that while HFH had requested PKR 1.5 billion for acquiring essential drugs, it was allocated a meagre PKR 400 million. Similarly, Benazir Bhutto General Hospital (BBGH) received a paltry PKR 380 million against its demand of PKR 1.5 billion, while RTC was handed just PKR 250 million despite seeking PKR 1 billion.

The senior HFH official further stated that while HFH, BBH, and RTC managed to procure medicines to last until June 30, no finances remain to clear outstanding dues or secure future shipments from distributors and suppliers.

"If funds are not released, the distributors will not provide medicines for the next month," he warned, adding, "The situation will deteriorate in the coming days when the hospitals will not provide any free medicines to patients."

The massive internal breakdown comes despite tall claims by the regional establishment.

"The Punjab government had asked the hospitals to provide free medicines to outdoor, indoor, emergency, and admitted patients. The three hospitals had demanded PKR 4.5 billion for the fiscal year 2025-26," confirmed a senior official of Rawalpindi Medical University while talking to Dawn.

The RMU official admitted that the acute shortage of funds would heavily cripple the free medicine initiative, triggering public outrage against the cash-strapped administration. He noted that the RMU syndicate had formally raised alarms over the paralysis and demanded immediate financial intervention. "The matter was brought to the notice of Punjab Health Minister Khawaja Salman Raffique as well," he added.

Confirming the financial gridlock to Dawn, HFH Medical Superintendent Dr Ijaz Butt stated that the healthcare facility is reeling under a massive deficit of PKR 900 million for patient medication. He noted that the finance department had failed to honour its commitment to disburse the funds by May.

Expressing similar grievances, BBH Medical Superintendent Dr Sharjeel stated that they had demanded more than PKR 1 billion, but the essential funds were withheld by the authorities.

He disclosed that for the current fiscal period, "we managed to purchase medicines, but the situation will get worse in the coming fiscal year." Striking a grim note on the country's collapsing supply chain, he stated that vendors and distributors had flatly demanded the clearance of all pending dues before the fiscal year ends in June. (ANI)

 
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