Govt releases Rs22b to settle hospitals' dues

After nearly two decades of unpaid dues, the Punjab government has released Rs22 billion in the first phase to settle long-pending payments owed to medical supply contractors across public hospitals in the province, including four major hospitals in Rawalpindi.

According to a notification issued by the Punjab Finance Department, a total of Rs491.783 million has been allocated to four hospitals in Rawalpindi as part of this payment. These hospitals had failed to clear contractors' dues for 19 years, resulting in disruptions in the supply of essential medicines.

Contractors had stopped providing medicines to public hospitals due to non-payment, leading to shortages that severely impacted patient care. The situation escalated in Lahore, where patients at government hospitals were reportedly deprived of basic medicines.

Following public outcry, Punjab Chief Minister Maryam Nawaz took notice and was informed that outstanding dues worth billions had not been cleared since 2005.

In response, the chief minister directed the Punjab Finance Department to release the funds in phases.

As part of the first tranche, Holy Family Hospital has received Rs62.993 million, Rawalpindi Teaching Hospital Rs91.43 million, Benazir Bhutto General Hospital Rs43.983 million, and Rawalpindi Institute of Cardiology Rs293.377 million.