KARACHI, Oct 24: The city government has cut the budget of its hospitals down by 40 per cent to purchase drugs.

“The ever-rising economic pressure has compelled the city government to take the decision,” said EDO finance Iqbal Hasan Zaidi. He, however, maintained that drugs worth Rs50 million to Rs60 million had already been procured.

Mr Zaidi said an “annual running contract” was being launched under which the suppliers would be bound to provide required equipment at the cost decided at the time of agreement and, any escalation in the price and expenditure incurred on repair would be ensured by the supplier during the entire period of contract.—APP