Global Fund alleges $4.2 million fraud in Pakistani hospital’s TB grant

This picture shows the entrance of Indus Hospital, Karachi, in June 2018. (Photo courtesy: Indus Hospital)
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Updated 16 March 2021
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Global Fund alleges $4.2 million fraud in Pakistani hospital’s TB grant

  • The Fund conducted an investigation into procurement fraud committed by The Indus Hospital between January 2016 and December 2018
  • Indus Hospital CEO rules out fraud, says “strict mechanism” followed by hospital in utilizing funds as Global Fund cuts off grant money

ISLAMABAD: The Global Fund to Fight AIDS, Tuberculosis and Malaria, an international financing and partnership organization, has said a major Pakistani hospital had committed a $4.2 million procurement fraud in a grant to eradicate tuberculosis (TB), the world’s deadliest infectious disease.
The findings of the Global Fund’s investigation raise serious questions about Pakistan’s ability to fight TB, especially as it battles a deadly second wave of the coronavirus. The World Health Organization has already warned that the COVID-19 pandemic was derailing global efforts to tackle tuberculosis, with cases likely to rise without urgent action and investment.
Pakistan — which records an estimated 510,000 new TB cases each year, with approximately 15,000 people developing drug resistant TB strains annually — is ranked fifth among high-burden countries worldwide. It also accounts for 61 percent of the TB burden in the WHO Eastern Mediterranean Region.
The Global Fund’s Office of the Inspector General conducted an investigation into procurement fraud activities committed by The Indus Hospital TB Program in Pakistan between January 2016 and December 2018 and last month published its report, which is exclusively available with Arab News.

“The investigation uncovered $4.2 million in non-compliant expenses,” the Fund said in an email response to questions from Arab News.
The organization mobilizes and invests more than $4 billion a year to support programs run by local experts in more than 100 countries, including Pakistan, to fight tuberculosis, AIDS and malaria. It has disbursed over $697 million to Pakistan since 2003, and is the country’s biggest donor for HIV/AIDS and TB.
“The Global Fund strongly condemns the acts of fraud committed by The Indus Hospital TB Program,” the organization said, saying it had cut off the Indus Hospital as of December 31, 2020, and was transferring activities to Mercy Corps and the National TB Program, both of whom were existing grant recipients, to ensure lifesaving TB programs continued uninterrupted.
Dr. Nasim Akhtar, the Pakistan government's national program manager for TB, said the Global Fund had exposed the fraud through its “own mechanism for transparency” as part of its monitoring and evaluation of funds. “The Indus Hospital is no more a recipient of the grant; it is an embarrassment for us,” she said. “We are now undertaking different administrative changes to make utilization of the funds transparent.”
The CEO of Indus Hospital, however, rejected any possibility of fraud, saying the hospital had a “strict mechanism” to utilize funds.
“We have responded to the investigation report and let’s see how they [The Global Fund] take it,” Dr. Abdul Bari Khan at The Indus Hospital, told Arab News.
WHO has said the South Asian nation of 220 million is estimated to have the fourth highest prevalence of multi-drug resistant TB cases globally due to delays in diagnosis, unsupervised, inappropriate and inadequate drug regimens, poor follow-up and a lack of a social support programs for high-risk populations.
An estimated 45,300 — 44,000 HIV negative people and 1,300 HIV positive people — die from TB in Pakistan each year.
“The country has made good progress in the fight against malaria, but significant challenges remain in TB and HIV,” the Fund said.
Arab News reported in August last year that The Global Fund had expressed dissatisfaction over the utilization of its grants in Pakistan and decided to invoke the Additional Safeguard Policy (ASP) to ensure “accountable use” of the funds.


Pakistan stocks hit record high on hopes of rate cut, improved US ties

Updated 19 January 2026
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Pakistan stocks hit record high on hopes of rate cut, improved US ties

  • Benchmark index gains 2,662 points, or 1.44 percent, to close at an all-time high of 187,761 points
  • Engro, UBL, Hub Power, Fauji Fertilizer, Meezan Bank and Service Industries added 1,554 points to index

ISLAMABAD: The Pakistan Stock Exchange (PSX) hit a record high as it surpassed the 187,500-point mark on Monday, with analysts citing improving ties with the United States and expectations of an imminent interest rate cut.

The benchmark KSE-100 index gained 2,662.86 points, or 1.44 percent, to close at an all-time high of 187,761.69 points, up from the previous close of 185,098.83 points, according to PSX data.

The stock gains came a day after President Donald Trump invited Prime Minister Shehbaz Sharif to join the so-called “Board of Peace” for Gaza, amid increasing Pakistan-US diplomatic and economic engagement since Trump’s rise to presidency.

“Falling government bond yields and improving Pakistan-US relations played a catalyst role in record close at PSX,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.

Meanwhile, Karachi-based market research firm Topline Securities said bulls extended their rally as hopes of a rate cut by the State Bank of Pakistan (SBP) fueled investor sentiment.

“Investor sentiment remained upbeat, largely fueled by rising expectations of an imminent interest rate cut,” it said in a post on X. “Market participants increasingly priced in a 50bps reduction in the upcoming monetary policy, which kept buying interest alive and underpinned broad-based gains.”

In December, the SBP cut its key policy rate by 50 basis points to 10.5 percent, resuming monetary easing after four meetings in a move that surprised many despite International Monetary Fund guidance to keep policy “appropriately tight” to anchor inflation expectations.

Engro Holdings Limited (ENGROH), United Bank Limited (UBL), Hub Power Company Limited (HUBC), Fauji Fertilizer Company Limited (FFC), Meezan Bank Limited (MEBL) and Service Industries Limited (SRVI) collectively added 1,554 points to the benchmark index on Monday, according to Topline Securities.

“Total market volumes stood at 1,195 million shares, while the value of shares traded amounted to Rs63.7 billion,” the research firm said. “[Bank Makramah Limited] BML led the volume chart, emerging as the most actively traded stock with 246 million shares.”