Centre blocks Punjab’s Rs400bn health insurance scheme

Amid challenging engagements with international lending agencies to unlock external flows for the balance of payments and flood recovery, the Centre has cast off Punjab’s Rs400 billion health insurance scheme in its present form and size, targeting the entire population of the province, including the rich and the poor. The project, named “Implementation of Universal Health Coverage under Health Insurance Programme in Punjab”, was presented at a recent meeting of the Central Development Working Party (CDWP) but was not approved after the planning ministry, particularly Planning Secretary Zafar Ali Shah, put up a strong opposition based on feedback from lenders and donors on untargeted subsidies and wasteful expenditures. Informed sources told Dawn that Mr Shah told the meeting, presided over by Planning Minister Ahsan Iqbal, that during a couple of meetings at the Prime Minister’s Office and the economic affairs division (EAD) for coordination on flood-related pledges, the most critical emphasis from lenders and donors remained on spending funds on those who actually deserve and in need of external support but not on those who can afford but prefer public funds.