Healing Hands Abroad: Role of Foreign Aid and Health Crisis in Pakistan

Abstract

Developing nations, specifically lower developed nations, are becoming aid dependent in the health sector.Health is a critical factor contributing significantly to economic growth. This study aims to examine the criticality of the of Foreign Aid and Health Crisis in Pakistan.This study investigates the impact of foreign aid on Pakistan's health sector using time-series data from 2000 to 2020.To assess the stationarity of variables, the Augmented Dickey-Fuller (ADF) test is applied, while the Johansen Cointegration Test is employed to determine the short-run and long-run relationships between the variables.The findings show that the impact of foreign aid on health sector has a positive impact in Pakistan.As foreign aid increases, then there will be improvement in the health sector. The results also show that as foreign aid increases, then the child mortality rate decreases.The study also reveals that foreign aid has a negative relationship with maternal mortality rate, and it has positive relationship with GDP per capita and mother literacy.Foreign Aid do contribute to development and enhancement of healthcare infrastructure in Pakistan foreign aid can support initiatives for disease prevention and control, including vaccination campaigns, awareness programs and the establishment of public health system. Foreign aid do provide the main support during the serious health crises such as epidemics or natural disasters, helping the response to emergency situations.