PESHAWAR – The Khyber Pakhtunkhwa government has increased the budget for the Sehat Card Plus (SCP) program to clear outstanding payments to hospitals and ensure the smooth implementation of the province’s flagship free healthcare initiative.
Officials confirmed that the government previously provided Rs3 billion per month to the State Life Insurance Corporation of Pakistan, which manages the scheme on behalf of the provincial government. In December, the monthly allocation was raised to Rs4 billion to help settle pending liabilities of empaneled hospitals, many of which had been facing significant payment delays.
Annual Budget Raised to Rs48 Billion
According to official sources, the total annual budget for the program has been increased from Rs36 billion to Rs48 billion. However, for the current fiscal year, the government allocated Rs41 billion, releasing Rs3 billion per month during the first five months from July to November. Officials said the increase to Rs4 billion monthly would allow the insurance company to gradually clear outstanding payments owed to hospitals participating in the program.
Sources indicated that the government’s liabilities to the insurer have already begun to decline. At the beginning of the fiscal year, the outstanding amount stood at Rs15 billion. That figure later dropped to Rs12 billion and is expected to fall further to Rs8 billion by the end of the year. The program’s annual expenditure is estimated at Rs34 billion to Rs35 billion, while the remaining funds are used to settle past liabilities.
Hospitals Facing Payment Delays
Despite the increased allocation, several hospitals have reported delayed payments from the insurance company, which has affected the provision of healthcare services under the scheme. For example, Ayub Teaching Hospital recently received just Rs38 million against an outstanding amount of Rs700 million.
Similarly, the Medical Teaching Institution in Bannu is awaiting payment of Rs290 million. Hospital officials say delayed payments make it difficult to compensate medical staff involved in treating patients under the program, potentially compromising the quality of care.
Sources stressed the need for a streamlined system to distribute funds more efficiently among hospitals. They also recommended prioritizing public hospitals, particularly those located outside Peshawar, so that patients can receive treatment closer to home and reduce the burden on major healthcare facilities in the provincial capital.
Majority of Patients Treated Outside Peshawar
Data from the program shows that 19 of the top 25 hospitals treating patients under the scheme from July 2025 to March 2026 are located outside Peshawar. Out of 948,182 patients treated during that period, approximately 700,000 received care in hospitals outside the provincial capital. Last year alone, 1.2 million patients received free treatment under the program at a cost of Rs35 billion.
Currently, 700 hospitals are panelled under the program, including 169 hospitals within Khyber Pakhtunkhwa. Since its launch in February 2016, nearly 4.98 million patients have received free diagnostic and treatment services worth a cumulative Rs135 billion. The scheme covers the entire population of the province, including over 10.7 million families comprising approximately 34.5 million individuals.
Officials expressed confidence that the timely release of funds would enable hospitals to continue providing free healthcare services without interruption and allow patients to receive treatment at local hospitals rather than being forced to travel to Peshawar. However, they acknowledged that further improvements in fund distribution mechanisms are needed to ensure that smaller and remote hospitals are not left waiting for months to receive their due payments.
