International researchers analyzed that health systems across the world are developing in response to a multitude of factors, including new medical technology and improvements in knowledge providing new health services and a greater access to them; changes in health policies to address specific diseases and demographic developments; new organisational structures and more complex financing mechanisms. However, access to healthcare and greater patient choice is increasingly being considered against a background of financial sustainability.
The amount each country spends on health care can be tough to compare because countries have unique economic, social and political characteristics that contribute to spending. Statistics showed that Global health sector expenditure hovers almost 10 percent of the world’s Gross Domestic Product (GDP), averaging close to USD 6 000 per capita in OECD nations. The United States leads globally at over USD 14 880 per person, while low-income countries heavily rely on out-of-pocket household spending exceeding 40 percent to 70 percent of total health costs. Current healthcare expenditure in the EU was €1 720 billion in 2023. This was equivalent to 10.0 percent of GDP. Among EU countries, Germany (11.7 percent), France (11.5 percent), Austria and Sweden (both 11.2 percent) had the highest current healthcare expenditure relative to GDP in 2023. Among EU countries, the largest expansions (in percentage terms) in healthcare expenditure per inhabitant between 2014 and 2023 were registered in Romania, Bulgaria, Lithuania, Latvia, Poland, Czechia, Estonia and Croatia, where expenditure more than doubled. In the developing countries like Pakistan, our government officials recorded that public health expenditures play a crucial role in achieving universal health coverage. In FY 2025, health expenditure increased by 1.9 percent, reaching Rs 942.2 billion compared to Rs 924.9 billion in FY 2024.
In Pakistan, health expenditure as a percentage of GDP is currently low, though the allocation is anticipated to gradually increase in the years ahead. Under the PSDP 2025–26, health-related development interventions are mainly reflected under the Ministry of National Health Services, Regulations and Coordination (M/o NHSR&C), with selected health projects also appearing under Provinces and Special Areas, Interior Division, and Defence Division. The total approved cost of these health-related projects stands at Rs 363,544.4 million. Expenditure up to June 2025 amounted to Rs 45,480.5 million, leaving a throw-forward of Rs 318,063.8 million as of July 2025. For FY2026, an allocation of Rs 19,375.8 million has been made for these projects. Of the total, NHSR&C accounts for the major share with Rs 14,053.5 million, followed by Provinces and Special Areas with Rs 4,413.7 million, Defence Division with Rs 808.6 million, and Interior Division with Rs 100.0 million. This reflects continued federal support for hospital infrastructure, specialized care, disease control, and medical institutions across the country. In Pakistan to enhance health expenditure, it is essential to prioritize increased government funding for healthcare infrastructure, medical supplies, and personnel training. Implementing universal health coverage can ensure that people have access to essential services without financial hardship. Strengthening public health programs and disease prevention initiatives will reduce long-term costs by minimizing the burden of preventable illnesses. Encouraging private sector investment and public-private partnerships can improve healthcare delivery and innovation. Improving healthcare governance and transparency will ensure efficient allocation and utilization of resources. Expanding health insurance coverage can protect vulnerable populations from catastrophic health expenses. Investing in digital health technologies can enhance service delivery and patient management. Training and retaining skilled healthcare professionals, especially in rural areas, is crucial for equitable health access.
Promoting community-based health programs can increase awareness and early intervention. Regular health expenditure audits can identify inefficiencies and areas for improvement. Collaborating with international organizations can bring technical expertise and additional funding. Fostering health research and data collection will inform better policy decisions. Raising public awareness about health issues can lead to healthier lifestyles and reduced healthcare costs. Finally, integrating traditional and modern medicine practices can provide cost-effective treatment options. On the global scale, countries like China, India, and many European nations have demonstrated that strategic investment in healthcare leads to better health outcomes and economic growth. International initiatives like the World Health Organization’s programs emphasize the importance of universal health coverage and equitable access. Learning from these global experiences, the government of Pakistan can adopt best practices and innovative models to improve its healthcare system, ensuring resilience and sustainability in the face of challenges like pandemics and emerging diseases.