ISLAMABAD: Pakistan has earmarked Rs25.1 billion for the health sector under the Annual Development Programme 2026-27, reaffirming its commitment to strengthening healthcare infrastructure and services across the country with tax relief for women-related health utilities.
Finance Minister Muhammad Aurangzeb unveiled Pakistan’s federal budget for fiscal year 2026-27 on Friday, with the government seeking to achieve a GDP growth target of 4% and inflation at 8.2%.
The allocation of Rs25.1 billion will be directed towards the development and upgradation of tertiary healthcare institutions, enhancement of critical care facilities, and implementation of key health projects aimed at strengthening the public healthcare system.
The minister said that public healthcare was the government’s key national priority. In the Federal Development Programme 2026-27, Rs25.1 billion has been allocated for health projects, he noted.
“These include the expansion of tertiary healthcare facilities, the strengthening of emergency and critical care, the scaling up of cancer treatment facilities, an integrated disease surveillance and diagnostic system, and the modernisation of the regulatory infrastructure,” the minister said.
Officials say the investment will help enhance service delivery, reduce pressure on existing facilities, and improve access to advanced medical care for patients nationwide.
According to the budget proposal, the government has proposed abolishing taxes on sanitary pads, recognising them as an essential health product for women across the country.
The tax exemption aims to make these products more affordable and accessible, particularly for low-income households.
Pakistan’s health and nutrition sectors have recorded significant progress during recent years, supported by sustained government interventions, reforms and policies aimed at strengthening human capital and advancing universal health coverage (UHC), revealed the 2025-26 Economic Survey released on Thursday.
The economic survey said that in 2026, key health indicators improved, with life expectancy rising to 67.8 years, immunisation coverage increasing to 73 percent, and reductions observed in neonatal and infant mortality rates.
The government continued efforts to modernise and expand healthcare services through a range of key initiatives. These included the development of the National Digital Health Hub, implementation of the Pakistan Multi-sectoral Health Workforce Strategy, and the expansion of disease control programmes targeting diabetes and Hepatitis C.
Efforts were also focused on strengthening nursing and midwifery services, while sustained investments were made to enhance cancer treatment infrastructure across the country.
