The Punjab government has proposed budgetary allocations for Rawalpindi’s healthcare institutions for the 2026–27 fiscal year, set to take effect July 1 pending final approval. Despite these new funds, three major public hospitals—Benazir Bhutto General Hospital (BBGH), Holy Family Hospital (HFH), and Rawalpindi Teaching Hospital (RTH)—report outstanding debts of Rs2.20 billion to medical suppliers for essential items including medicine, disposables, and gases.
Did You Know? Holy Family Hospital has been assigned the largest share of the proposed hospital budget at Rs2.8854 billion, while the College of Nursing at BBGH is slated to receive Rs92 million.
Proposed Budgetary Breakdown
The financial framework designates specific funding for several key institutions across the city. According to government data, the Rawalpindi Institute of Cardiology is assigned Rs2.5722 billion, BBGH will receive Rs1.8186 billion, and RTH is allocated Rs1.1316 billion. Medical education support includes Rs832 million for Rawalpindi Medical University (RMU).
Specialized centers also feature in the plan. The Nawaz Sharif Cardiology Centre in Sihala Murree is earmarked for Rs565.3 million, and the Syed Muhammad Hussain General Hospital is set to receive Rs475.6 million. Additionally, funding for blood transfusion services is distributed among HFH (Rs34 million), RTH (Rs125 million), and Syed Muhammad Hussain General Hospital (Rs49.11 million).
Procurement Risks and Outstanding Liabilities
The Rs2.20 billion debt from the 2025–26 fiscal year creates a significant hurdle for the upcoming cycle. Officials confirmed these unpaid dues remain owed to vendors for critical medical supplies. Suppliers have signaled that future deliveries may be contingent upon the clearance of these existing arrears.
Expert Insight: The disconnect between new budget allocations and the carry-over debt of Rs2.20 billion suggests a potential strain on hospital operations. Unless the government reconciles these legacy liabilities, patient care could face disruptions if vendors choose to halt the supply of life-saving gases and disposables.
What May Happen Next
The continuity of the public healthcare supply chain remains uncertain as the July 1 implementation date approaches. If the outstanding Rs2.20 billion is not prioritized for payment, the city’s major hospitals could see a reduction in available medical resources. Analysts expect that negotiations between hospital administrations and vendors will determine whether procurement remains stable or faces immediate suspension.
Frequently Asked Questions
When will the new budget take effect?
The financial package is scheduled to become effective on July 1, following final approval.
Which hospital received the largest budget allocation?
Holy Family Hospital (HFH) was assigned the largest share among city hospitals, totaling Rs2.8854 billion.
Why are there concerns about medical supplies?
Hospitals are carrying Rs2.20 billion in unpaid dues from the previous fiscal year, and suppliers have stated that future deliveries depend on the settlement of these debts.
How will the city manage the pressure of these outstanding debts while attempting to launch new health programs?