Public Health Care and Government Health Expenditures in Pakistan

Abstract

This study evaluates the impact of health care expenditure by the government on health sector outcomes in Pakistan by using data from the period 1982 to 2016. To examine whether the variables are stationary, the ADF test is run whereas the relationship among the variables is tested through the ARDL model technique. The empirical result from the regression equation shows that healthcare expenditure affects significantly the health sector outcome i.e., a decrease in infant deaths in the long run. Bilateral and multilateral fund assistance becomes a part of health expenditure in less progressive countries which is helpful for increasing the resource allocation in the vital segment of the economy. Hence funds allocated for health care expenditure need to be sensibly utilized because it will help in achieving a portion of the Millennium Development Goals. Improved wellbeing can be achieved as an outcome of enhanced capacities of the health sector as a result of the proper allocation of public healthcare funds.