Health is widely recognized as a critical pillar of human capital and a driving force for sustainable economic growth. This study examines the evolution, structure, and performance of Pakistan’s health sector and its contribution to economic development. Using annual time series data from 1972 to 2005, the research employs cointegration techniques to explore both short-run and long-run relationships between health-related variables, health resources, and economic growth. The analysis considers multiple dimensions of health infrastructure, including hospitals, dispensaries, basic health units, specialized care centers, and the availability of health professionals. Findings indicate that improved health resources when equitably distributed enhance labor productivity, educational attainment, and savings behavior, thereby fostering higher economic output. The study underscores the need for integrated health and economic strategies, emphasizing targeted investments in primary care, equitable access, and policy continuity to leverage health as a catalyst for economic prosperity in Pakistan.