Islamabad: Pakistan will restore free hospital treatment for all families in Islamabad, Azad Jammu and Kashmir and Gilgit Baltistan from January 16 under a reworked Sehat Sahulat Program, but the new model will gradually ask the affording half of the population to start sharing the cost of care, moving towards full insurance premiums within four years, officials told the 34th meeting of the National Steering Committee on Monday.
Under the proposed revival plan, health insurance services will remain completely free for the first two years for all permanent residents of ICT, AJK and GB. From the third year, around 50 percent of the population classified as the affording class will be required to pay 50 percent of their treatment costs. In the fourth year, this group will contribute 75 percent, and after that they will be expected to pay their own health insurance premium, effectively shifting them to a self financed insurance model while government subsidies continue for the poor.
The decisions were taken at the 34th meeting of the National Steering Committee of the Federal Sehat Sahulat Program, chaired by Federal Health Minister Syed Mustafa Kamal.
The meeting was attended by the secretary and special secretary of national health services, Vice Chancellor Health Services Academy Prof Shahzad Ali Khan as a member of the steering committee, and Chief Executive Officer of the Sehat Sahulat Program Muhammad Arshad Qaimkhani, along with other members.
The committee reviewed progress on the restoration of universal health coverage in Islamabad, AJK and Gilgit Baltistan and was briefed on the prime minister’s directive for immediate revival of services and the formal relaunch of the scheme on January 16, when Prime Minister Shehbaz Sharif will publicly announce the restart of free treatment.
The steering committee approved a revised PC I for the programme with an estimated cost of around Rs40 billion, extending its operations until June 30, 2027. The new PC I will finance the purchase of hospital services through a health insurance model, allowing patients to receive cashless inpatient care at empanelled public and private hospitals.
To avoid another disruption, the committee decided to extend existing contracts with the State Life Insurance Corporation, which handles insurance payments, and the National Database and Registration Authority, which verifies beneficiary families, through addenda. Outstanding liabilities to hospitals will be cleared from the Public Sector Development Programme in line with the prime minister’s instructions.
Speaking at the meeting, Mustafa Kamal said Pakistan had to move away from directly running hospitals towards insurance based and strategic purchasing systems if it wanted to ensure quality, transparency and dignity in healthcare.
“Our goal is universal health coverage, but it must be financially sustainable as well,” he said, adding that the new phased cost sharing model would help protect the poor while gradually bringing those who can afford to pay into the insurance pool.
Sehat Sahulat is Pakistan’s largest publicly funded health insurance scheme, offering cashless inpatient treatment for major illnesses. At its peak, it covered millions of families, shielding them from catastrophic medical bills. However, funding gaps and unpaid claims over the past year led to partial suspension of services in several areas, leaving many patients unable to use their cards.
With the Rs40 billion PC I now approved and a clear roadmap for cost sharing and insurance financing, federal officials say the government hopes to stabilise the programme in ICT, AJK and Gilgit Baltistan and restore confidence among both hospitals and patients.
Mustafa Kamal confirmed that Prime Minister Shehbaz Sharif will formally announce the restoration of the Sehat Sahulat Program on January 16, marking what the government is calling a fresh start for federally funded health coverage.
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