IMF policy paper on healthcare: Pakistan projected to spend 0.8-0.9 percent of GDP in 5 years

Pakistan is projected to spend 0.8 percent to 0.9 percent of its GDP on public health during the year 2010 to 2015 which is the lowest among the emerging economies of the world, says a policy paper of the International Monetary Fund (IMF).
The policy paper issued by the IMF on 'Macro-Fiscal Implications of Health Care Reform in Advanced and Emerging Economies' says that Pakistan is projected to spend 0.8 percent to 0.9 percent of GDP on public health from 2010 to 2015 while for the next 10 years 0.9 to 1 percent during 2015 to 2025. On the other hand, India is projected to spend 1.2 percent to 1.3 percent of its GDP on public health during 2015 to 2025.
According to the policy paper, emerging economies in Asia, have lower coverage levels and more scope to expand the spending. In order to maintain fiscal sustainability, it is essential to restrict the benefit package to the most essential health services, until the capacity to finance higher public health spending increases, the paper added.
The Economic Survey (2009-10) had said that despite nearly three-fold increase in public sector expenditure on health since 2001, spending on health remains low and has declined as a percentage of GDP.
In Pakistan, the overall expenditure of the government on health is disappointing. About 19 percent of the population is malnourished. During FY09, the total expenditure on health on both, provincial and federal level, remained Rs 74 billion. Out of this amount of Rs 74 billion, Rs 33 billion have been spent as the development expenditure while the overall expenditure on health was recorded to be 0.5 percent of GDP.
The total expenditure on health on both, provincial and federal level, in the fiscal year 2009-10 remained Rs 79 billion. Out of this amount Rs 38 billion were spent as development expenditure while again the total health expenditure was recorded to be again 0.5 percent of total GDP. Under Public Sector Development Plan (PSDP) in the federal budget 2010-11, the federal government has already reduced allocation for health from Rs 23.15 billion in 2009-10 to Rs 16.944 billion, which is 2.56 percent of total budget, the Economic Survey (2009-10) added.