ISLAMABAD: A 16 per cent proposed cut in the federal health development budget was described as “one of the lowest health budget allocations” in the region, which will directly impact hospitals, basic health units, and the training of medical professionals.

According to Pakistan Islamic Medical Association (Pima) Central President Prof Atif Hafeez Siddiqui, the significant reduction in the budget came amid growing health challenges. He said this would directly impact hospitals’ and BHUs’ construction, equipment upgrades, medical education, disease surveillance systems, and the training of medical professionals.

“Pakistan continues to face a dual burden of non-communicable diseases, such as diabetes, cancer, and heart disease, alongside ongoing threats from infectious diseases, like tuberculosis, hepatitis, and HIV/Aids. In this context, reducing development allocations compromises the country’s capacity to respond effectively and weakens overall health system resilience,” he said.

He urged the government to take urgent corrective steps in light of current health challenges. He called for the restoration and enhancement of the development health budget to support healthcare infrastructure and ensure long-term health improvement.

Civil society demands taxes on ultra-processed food; pharma sector happy with relief

He expressed deep concerns over the budget, noting that it represented one of the lowest health budget allocations in the region. Pakistan spends less than 0.9pc of its GDP on health, far below regional and global standards.

The budget did not increase taxes on the ultra-processed products—a move termed ‘anti-public health’ by civil society. It urged the government to prioritise public health over corporate interests and introduce at least 20 per cent federal excise duty (FED) during the budget approval process.

With one Pakistani suffering a heart attack every minute and the daily death toll from diabetes and its complications exceeding 1,100, this is a national health emergency demanding bold, evidence-based policy action from the government, the experts said in a media discussion organised by the Pakistan National Heart Association (Panah), in collaboration with Heartfile, Pakistan Kidney Patients Welfare Association, Centre for Peace and Development Initiatives (CPDI), Pakistan Youth Change Advocates (PYCA), and other civil society organisations at a local hotel in Islamabad.

“Ultra-processed products, including ice creams, biscuits, candies, confectioneries, bakery foods, chocolates and other packaged junk foods, significantly contribute to the growing burden of heart disease, diabetes, kidney failure, and obesity in Pakistan,” said Sanaullah Ghumman, Panah general secretary. “Instead of taxing essential items like fuel, the government must take bold fiscal measures to tax products harming public health.”

Ghulam Abbas from the Pakistan Kidney Patients Association emphasised, “Public health must be reflected in fiscal decisions. The failure to tax UPPs is a missed opportunity to protect millions of lives. We urge the government to reconsider and include a health-protective tax on ultra-processed products in the final budget stages.”

It is worth mentioning that Federal Health Minister Syed Mustafa Kamal has claimed that, considering the current economic challenges, the government has made every effort to allocate a commendable budget for the health sector.

Meanwhile, the Pakistan Pharmaceutical Manufacturers’ Association (PPMA) appeared happy with the budget that reduced export duties on active pharmaceutical ingredients and related products. Its member Usman Shaukat said that the budget was viewed as a positive development by the pharmaceutical industry.

“Certain budget recommendations presented to the government have been accepted such as the reduction in import duties on pharmaceutical Active Pharmaceutical Ingredients (APIs), excipients, and packaging materials in the recently announced federal budget,” he said.

He hoped the final budget would also entertain their demands to allow the SMEs to contribute to export revenues vis-à-vis technological upgradation.

“...we hope to see more incentives for exporters, and as the pharmaceutical industry is expected to lead the future export targets, it is essential to ensure substantial export incentives and tax reductions are offered to exporters… [Also] request for export retention amount to be increased to 35pc from 15pc should be accepted. [The pharma] sector has requested to allow for the industry to utilise current Central Research Fund (CRF) for internal research needs, as it is a dire need and current utilisation of the fund is not up to the mark,” Usman Shaukat said.

Published in Dawn, June 12th, 2025