The effort to improve ways
to finance health care has been the guiding force for improving health outcomes
in many developing and developed countries. However, total spending on health
varies sharply across countries. Whereas, in many developed countries
populations enjoy universal access to range of health services financed through
general tax revenues, social insurance, private insurance and user charges, in
many low-income countries, financial protection against the cost of illness is
still incomplete. The proportion of populations sharing risk is low, and
differential between access to health care services among the rich and poor is
wide. The paper presents evidence on current practices of Pakistan’s health
care finance and delivery, and suggests ways through which alternative resource
mobilization strategies can be devised for health care in Pakistan.  Some popular methods of health care financing
being practiced in other countries are community financing, user fees, health
insurance, and assistance from donors. However, resources can also be saved
from wasteful and ineffective uses of health technology (services, programs and
procedures), and result in improving efficiency of existing health care
services. Reallocation of resources within the health sector can be cost
effective. The paper develops a criterion for choosing a financing system that
takes into account factors like ease of use of the system, revenue generating
ability, effects on service provision, and community participation in the
socio-economic context of Pakistan.

Main words: Resource mobilization,
health care finance and delivery, health insurance, community participation,
health expenditure.

JEL Classification:  H51,
118, H0