Abstract: The good health facilities are considered to be the important indicator of development. If a country is lacks in having necessary health facilities. It cannot claim for development. By health facilities we mean all those facilities necessary to maintain health & protect it again disease. These facilities may be available for the people in the form of hospitals, dispensaries, qualified doctors and nurses, proper medicines & necessary equipment to run hospitals. It is a fact that economic development cannot takes place without development of health sector. A sick nation cannot be expected to participate in production process efficiently. whether a nation is suffering from physical disabilities or mental worries in both cases, it has deteriorated effects on economy. In developed countries, the development of health sector is the main contribution factor to their progress while on the contrary, the health sector is quite back ward specially in less developed countries, like Pakistan (where the health care system is lead astray. It is ill planned, poorly organized and inefficiently run) According to the country’s constitutional implementations of health care is a provincial function. The federal government is mainly concerned with the formulation of National Health Policy, Co-ordination of Provincial Health Services & Health Training Standards. Due to financial constraints & shortage of qualified female manpower, the Public Sector could not fully manage to provide health care to all citizens especially of rural areas. However, health care facilities rapidly expanded in urban areas in the private sector. A Governments main commitments has been to achieve the goal of "Health for all" through Primary health care. So the public expenditure in health sector has gradually increased from 0.4% of GNP in 1960s to 0.7 to 0.8% in 1990s.