LAHORE, October 2, 2026: The Punjab government is considering the closure of the Punjab Health Foundation (PHF), a self-financed institution established 34 years ago to provide interest-free loans to doctors and support healthcare services across the province.
As part of the review, the Punjab Finance Department has sought details of the foundation’s financial position, assets, liabilities, human resources and outstanding loans.
According to reported figures, the foundation has provided more than Rs2.5 billion in interest-free loans to over 2,100 doctors. It has also reportedly managed its operational expenses without receiving government funding. The foundation currently has around Rs1.328 billion in its bank account, while its loan recovery rate is reported to be around 98 percent.
Over the years, PHF has also contributed to the establishment of around 2,100 healthcare centres across Punjab, with these facilities reportedly generating approximately 10,000 employment opportunities.
The foundation has additionally distributed more than Rs4.4 billion in stipends and operates digital systems for managing stipends and interest-free loan programmes for healthcare professionals.
Closure Being Considered Under Austerity Measures
A Punjab Health Department spokesperson said the possible closure of the foundation is being considered as part of the government’s austerity measures.
Officials are also examining the possibility of transferring PHF employees and funds to other institutions. However, the government has not yet taken a final decision on the foundation’s closure.
The spokesperson said the matter would be decided after consultations with the relevant authorities and a review of the institution’s overall position.
Foundation Established in 1992
The Punjab Health Foundation was established under the Punjab Health Foundation Act, 1992. Its primary role has been to provide financial assistance, including interest-free loans, to doctors and healthcare institutions and support the expansion of healthcare services in Punjab.
The government’s current review will determine the future of the 34-year-old institution, including the status of its assets, funds, employees and ongoing financial programmes.