Discontinuance of Medical Reimbursement Act, 1972

The Discontinuance of Medical Reimbursement Act, 1972 (Act XXV of 1972) ended the practice of reimbursing government employees for medicine expenses. Section 1 says it extends to the whole of Pakistan, came into force at once, and is treated as having taken effect retroactively from 1 July 1972. It applies to all employees of the Federal and Provincial Governments (including those on deputation to public corporations or statutory bodies) and to all other employees of public corporations and statutory bodies.

Section 2 is the core rule: notwithstanding any other law, rule, order, instrument or contract, covered employees can no longer claim reimbursement for medicines they purchased for themselves or a family member, regardless of whether the medicine was prescribed by an authorised medical attendant or another medical authority.

Section 3 provides a limited alternative: an employee may still be allowed to obtain medicines prescribed by the authorised medical attendant, but only in accordance with rules made by the employer and within the funds budgeted for that purpose by the employing department or body — i.e., in-kind supply rather than cash reimbursement.

Section 4 was later omitted by a 1981 revision ordinance, as shown in the extract's footnote. This is an old (1972) law whose current practical effect on medical benefits should be checked against current civil service rules and any later amendments.