Rethinking NFC for health
Pakistan’s health crisis runs deeper than funding shortages, the real problem is not just how much is spent, but how resources are distributed.
The population-dominant National Finance Commission (NFC) Award formula assumes that more people require more resources. But this assumption falls short in a system where need varies sharply. A financing model based primarily on population cannot account for differences in poverty, disease burden, geography or the cost of delivering services.
Population remains important, but insufficient for guiding health financing. Provinces with similar populations can encounter vastly different health challenges: one may struggle with higher maternal mortality, weak infrastructure and dispersed populations; another may have stronger service delivery systems and better access. Yet under a population-centric formula, both are treated........
