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Experts on Monday asked for exploring alternative mechanism to generate resources for provision of proper healthcare facilities. Speaking at a seminar on "Raising Revenue for Pakistan Healthcare; options and problems" here at Sustainable Development Policy Institute, they also discussed the pros and cons of various modes of health financing, including tax-based financing, user fees, community financing and health insurance.
The experts said that at present Pakistan's health scenario presented a disappointing picture, dominated by an inefficient public sector and unregulated private sector.
They said the health sector faces the problems of scarce resources, disease burden, weak administration and lack of alternative mechanisms.
The speakers pointed out that budgetary allocation for the health sector is very poor being less than one percent of the GNP and less than four percent of the GDP.
They lamented that for 148 million people of Pakistan, the per capita health expenditure is only 16 dollars, which is one of the lowest in the region.
Dr Shafqat Shehzad of SDPI said proper consultation and understanding was essential prior to formulating pro-poor health policies and their financing.
She said Pakistan's healthcare costs are consistently rising, and being a developing country with a large rural and informal sector, the government's taxation capacity is very low.
Dr Shafqat said the government should adopt appropriate financial strategies, taking care of adjustment for inflation, and minimise the risks for adverse selection and moral hazards.
Dr Talib Lashari from Network for Consumer Protection called for a new healthcare financing, which should be a combination of tax revenue, community financing, and social and private insurance.
He said timely disbursement and proper utilisation of resources are of paramount importance to improve healthcare financing in Pakistan.
Planning Commission's Dr Fazal Hakim Khattak said the financing of health sector is clearly defined; though it needs improvement.
He said the managing capacity of the resources needed drastic improvement, adding it is not the question of fewer resources, but of fully utilising them.
Dr Fazal said Pakistan is lacking political will in improving resources, their allocation and distribution in the health sector.

Copyright Business Recorder, 2005

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