Health is the key and significant asset that a human being has that allow people to exclusively develop their abilities. If this asset corrodes or not fully developed, it will cause emotional and physical weakness that causes hindrances in people lives. Keeping in view the importance of health in human capital and human development index, it is important to conduct a study that highlight the consequence of Hepatitis in Pakistan. This study is designed to estimate the effect of viral hepatitis (B & C) on labor productivity, family income, morbidity and mortality, estimate the direct and indirect cost hepatitis (B & C) and total cost imposed on each patient and their family in Pakistan. Primary data was collected from 8,388 Hepatitis B and C patients at district headquarter hospitals, private hospitals and doctors’ clinic from 77 districts across Pakistan including Azad Jammu and Kashmir and Gilgit Baltistan through a well design questioner containing 36 questions based on demographic and economic indicators. Descriptive, probit logit and OLS econometric techniques were applied for data analysis. This study finds significant effect of viral hepatitis B and C on labor productivity, labor mobility, absenteeism and presentism at work place and family income, in Pakistan. This study also found significant impact of hepatitis on productivity in terms of absenteeism and presentism and estimated that an average per patient and their attendant’s absenteeism and presentism 1.89 days per month and total working days. Furthermore hepatitis B and C had also found significant indirect impact on labor mobility employment and mortality and concluded that 2.07% visa rejection, 6.2% job rejection, 1.2% job termination and 5.2% morality caused by hepatitis B and C. similarly the effect of hepatitis B and C was found indirect and caused decline in income in term of loss of working days and sell of assents. The government should form such policies that encourage long term investment in human capital by both government and public sector. Recommendation: Health care expenditure must be increased up to 5% of GDP to meet the minimum requirements for the provision basic health facilities to population.

Hepatitis, Labor productivity, Labor Mobility, Absenteeism, Job Rejection

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