Federal hospitals are reducing services after government austerity measures cut millions of rupees from allocated budgets, creating operational challenges in public healthcare institutions.
The Ministry of Finance introduced the reductions under a cost-cutting plan, affecting facilities including Pakistan Institute of Medical Sciences (PMIS), Polyclinic Hospital, NIRM and FG Hospital.
Officials at Pakistan Institute of Medical Sciences report budget cuts exceeding Rs390 million, adding to an existing shortfall that was estimated at around Rs1.5 billion.
Hospital administrations have formally contacted the Ministry of Health, requesting intervention and exemption from austerity measures, warning that essential services and supplies could be disrupted.
Administrators say restrictions on procurement have limited purchases of medicines, equipment and other supplies, while shortages of fuel for generators and vehicles are now emerging.
Officials report that medicine stocks at Pakistan Institute of Medical Sciences are sufficient for one month, raising concerns about continuation of free treatment for patients.
Sources indicate that continued funding constraints may force hospitals to scale back services further if budget allocations are not restored or adjusted in coming weeks.
Earlier this week, the federal fovernment re-revised the Public Sector Development Programme FY 2025-26 to Rs 837.160 billion, after imposing another Rs 63 billion cut.
So far, a cumulative 17 percent reduction has been applied across ministries, provinces, special areas, and corporations, significantly shrinking allocations for development projects.
Earlier in March, Rs 100 billion was slashed to subsidize petroleum products, followed by a fresh Rs 63 billion reduction, further tightening the federal development expenditure.
Allocations for ministries, corporations, provinces, and divisions have faced steep cuts, with provinces enduring nearly 20 percent reduction, and Water Resources Division losing Rs 129 billion.
Key sectors including highways, power, education, health, housing, and railways have all seen downward revisions, reflecting austerity priorities under the Austerity Fund 2026.
