Officials stated that the government had been allocating Rs3 billion per month to the State Life Insurance Corporation of Pakistan, which administers the scheme. In December, this monthly amount was increased to Rs4 billion to help address outstanding dues owed to empaneled hospitals.
Annual budget increased to Rs48 billion
According to official sources, the program’s total annual budget has been raised from Rs36 billion to Rs48 billion. For the current fiscal year, however, Rs41 billion has been allocated, with Rs3 billion released each month during the first five months, from July through November.
Authorities noted that the enhanced funding will enable the insurance company to gradually clear pending payments to hospitals participating in the scheme.
Outstanding liabilities on the decline
Sources indicated that the government’s outstanding liabilities to the insurer have already started to decrease. At the start of the fiscal year, dues stood at Rs15 billion, later falling to Rs12 billion, and are projected to drop further to around Rs8 billion by year’s end.
The program’s yearly expenditure is estimated between Rs34 billion and Rs35 billion, while the remaining funds are being utilized to settle previous liabilities.
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Hospitals experiencing payment delays
Several hospitals have raised concerns over delayed reimbursements from the insurance company, which has impacted service delivery under the scheme.
For instance, Ayub Teaching Hospital recently received Rs38 million against pending dues of Rs700 million. Likewise, the Medical Teaching Institution in Bannu is still awaiting Rs290 million.
Hospital officials say such delays make it challenging to pay medical staff involved in treating patients under the program.
Call for better fund distribution
Sources emphasized the importance of improving the system for distributing funds more efficiently among hospitals. They also suggested giving priority to public hospitals, especially those outside Peshawar, so patients can access treatment closer to their homes and ease pressure on major healthcare facilities in the provincial capital.
Majority of patients treated outside Peshawar
Data reveals that 19 out of the top 25 hospitals providing treatment under the scheme between July 2025 and March 2026 are located outside Peshawar. Of the 948,182 patients treated during this period, approximately 700,000 received care in hospitals beyond the provincial capital.
In the previous year alone, around 1.2 million patients benefited from free treatment under the program, costing Rs35 billion.
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Extensive coverage across the province
Currently, 700 hospitals are empaneled under the scheme, including 169 within Khyber Pakhtunkhwa. Since its launch in February 2016, nearly 4.98 million patients have received free diagnostic and treatment services worth Rs135 billion.
The program now covers the entire provincial population, including more than 10.7 million families, representing about 34.5 million individuals.
Officials added that timely fund disbursement will ensure hospitals can continue delivering free healthcare services, while also enabling patients to seek treatment at nearby facilities instead of traveling to Peshawar.
