Punjab Hands Over 982 Basic Health Units to Private Sector Amid Budget Crisis
LAHORE – The Punjab Health Department has transferred control of 982 Basic Health Units (BHUs), including 73 facilities in the Rawalpindi division, to private entities as part of the second phase of its ongoing healthcare privatization plan.
In a major development, all existing medical staff—including doctors, female medical officers, paramedics, and Grade-IV employees—are being relieved from their positions following the handover.
Expanding Privatization of Public Healthcare
This move comes shortly after the department’s earlier phase in which 150 BHUs were privatized last month, bringing the total number of privatized BHUs to 1,132 out of 2,507 across the province.
According to official sources, the complete privatization of all BHUs and rural health centers is planned by the start of the 2025–26 fiscal year. The policy shift is part of a broader initiative to restructure Punjab’s public health system amid rising financial pressures.
Major Hospitals to Follow
The privatization strategy is not limited to rural units. In the next phase, major urban hospitals in cities like Lahore, Rawalpindi, Gujranwala, Faisalabad, and Multan are also set to be privatized. Notably, Holy Family Hospital and Benazir Bhutto General Hospital in Rawalpindi have already been included in the upcoming transition.
Employee Protests and Budget Constraints
Following the announcement, displaced healthcare workers have begun protesting outside affected BHUs, expressing outrage over job losses and a lack of consultation in the decision-making process.
Officials cite an ongoing economic crisis and severe budget shortfall as key reasons behind the decision. In response to financial constraints, the department has also abolished 30,000 vacant positions spanning from BPS-1 to BPS-18, which were previously frozen due to lack of funds.
Earlier this year, the Punjab government had already approved the privatization of 90 BHUs and rural health centers in the Rawalpindi division as part of a cost-saving strategy.
