Hospitals ‘face funding cuts’ after austerity measures

HealthMust ReadHospitals 'face funding cuts' after austerity measuresBy Jahangir Khan-Apr 16, 2026ISLAMABAD: Federal hospitals in Pakistan are facing fund cuts worth millions of rupees from their allocated budgets, ARY News reported on Thursday, citing reliable sources. Sources said the Ministry of Finance implemented the reductions as part of an austerity drive, affecting several major healthcare institutions. As per details, the Pakistan Institute of Medical Sciences (Pakistan Institute of Medical Sciences (PIMS)) alone has seen budget cuts exceeding Rs390 million. Funding allocations for other federal hospitals, including Polyclinic Hospital, NIRM and FG Hospital, have also been reduced.  According to sources, hospital administrations have written to the Ministry of Health, expressing concern over the decision and urging its reversal. They have requested that the matter be taken up with the Ministry of Finance and that hospitals be exempted from the austerity measures. The PIMS administration has also warned that the cuts could disrupt the supply of essential medicines, maintenance services, and procurement of medical equipment. It was further noted that restrictions have been placed on the purchase of hospital supplies. Officials said the funding reductions are already causing operational difficulties, with concerns raised over shortages of medicines, fuel for generators and vehicles, and surgical equipment. At present, PIMS reportedly has only one month’s stock of medicines remaining. There are also fears that free medicine provision to patients—currently supported under government directives—could be affected if the situation persists. Sources added that the hospital was already facing a budget shortfall of around Rs1.5 billion prior to the latest cuts.