ISLAMABAD: The Federal Government has reportedly decided not to extend any financial support to the multibillion rupee health coverage scheme of Punjab government, saying the entire funding will be met from Punjab Government, well informed sources told Business Recorder.

The health insurance coverage project of Punjab government was received as additional agenda item during a meeting of Executive Committee of National Economic Council (ECNEC) on November 24, 2021. Therefore, it was informed that Cabinet Division could not examine the proposal as stipulated in Rule 18(6) read with Rule 23(4) of the Rules of Business, 1973.

The Secretary, Ministry of Planning, Development and Special Initiatives, however, explained the urgency in view of time constraint and sought permission of the Chairman ECNEC to present the case. The Chairman ECNEC allowed the request to table the summary in consideration of the proviso of the aforesaid rule.

According to sources, Ministry of Planning, Development and Special Initiatives, briefed the ECNEC about the case. It was informed that the project was considered by the CDWP in its meeting held on October 25, 2021 and recommended the project for consideration of ECNEC at a total cost of Rs 333 billion without Foreign Exchange Component subject to the following: (i) sponsor to provide the conclusions of the Provincial Steering Committee, after reconsideration of the observations recorded in the minutes. The view point of GoPb would be included in the summary for the ECNEC, along with the proposal of two-stepped approach towards universal coverage; and (ii) Government of the Punjab approved principles of Health Policy “encompassing the interlinked elements of Universal Health coverage, which will be attached for ECNEC”.

During the ensuing discussion, the ECNEC observed that all funding for the project was being met through provincial ADP 2021-22 and that neither any funding from Federal PSDP nor any FEC component was involved, therefore the powers to approve should also vest with the provincial government.

The ECNEC considered the summary submitted by the Ministry of Planning Development and Special Initiatives titled “implementation of Universal Health Coverage under Health Insurance Program in Punjab” and approved the project on the condition that there shall be no liability for the Federal Government and entire funding will be met from Punjab Government and the advice/observations of the CDWP will also be kept in view while implementing the project.

It was further decided that the Ministry of Planning Development and Special Initiatives shall review the powers of the provincial project approval fora.

Copyright Business Recorder, 2021