No Federal Funds for Provincial Health Cover

The federal government has decided not to fund provincial health coverage, citing the 18th Constitutional Amendment, and has asked provinces to develop health insurance models.

The decision followed approval of the Sehat Sahulat Programme for selected federal territories only, with no extension planned for provincial populations, according to Dawn.

The programme, with a revised cost of Rs 40.2 billion, has been extended until June 30, 2027, but limited to three regions.

Officials said it will apply only to Islamabad, Azad Jammu and Kashmir, and Gilgit Baltistan, following a meeting chaired by the prime minister.

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Internal proposals to include Sindh’s Tharparkar district were not supported, as officials argued even one district could prompt similar demands nationwide pressures.

Documents stated that health is a devolved subject after the 18th Amendment, and the federal development budget could not absorb additional liabilities.

A special committee later concluded the programme ended on June 30, 2025, after multiple extensions, and should move to the current budget.

The committee recommended provinces develop their own schemes, while the health ministry may design a limited pilot based on claim co-payment approaches.