PESHAWAR – A critical healthcare lifeline for the residents of the provincial capital has been successfully secured. , The Khyber Pakhtunkhwa provincial cabinet, chaired by the chief minister, has approved a substantial sustainability funding package for the Nishtarabad General Hospital Peshawar, averting an imminent shutdown of its emergency and outpatient services.
Transitioning Past the World Bank Funding Cutoff
The 100-bed secondary healthcare facility recently faced a severe operational crisis when its primary funding source dried up. The World Bank-financed Khyber Pakhtunkhwa Human Capital Investment Project, which had kept the hospital running, reached its official expiration date on June 30, 2026.
Fearing a complete halt in medical treatments for thousands of local families, the provincial health department moved a summary to the cabinet. Recognizing the public emergency, the KP government immediately took over the financial responsibility of the facility.
A Strategic Two-Phase Financial Rescue Package
To ensure that medical services continue without a single day of disruption, the cabinet approved a multi-million rupee supplementary grant to be released in two distinct stages:
- The First Phase (July 1, 2026 – December 31, 2026): First, the government has authorized an immediate release of 151.734 million rupees to cover the current transition period.
- The Second Phase (January 1, 2027 – June 30, 2027): Next, the cabinet set a budget ceiling of 174.495 million rupees for the subsequent six months, which accounts for increased human resource costs and salary raises for healthcare staff.
Long-Term Shift to Public-Private Partnership
To keep operations smooth during this transitional phase, the cabinet extended the contract of the hospital’s current management partner, the Medical Emergency Resilience Foundation (MERF), until December 31, 2026. The institution will now operate under the direct oversight of the Khyber Pakhtunkhwa Health Foundation.
During this interim period, authorities will utilize the Health Foundation Act 2016 to design a transparent, competitive process. This plan will permanently transition Nishtarabad General Hospital Peshawar to a long-term Public-Private Partnership (PPP) model, ensuring the hospital remains sustainable, well-staffed, and fully operational for years to come.
