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The Punjab government has announced a new bond agreement for students admitted to MBBS and BDS courses in state-run medical and dental colleges beginning with the 2025–26 academic year. Under this policy, those taking the state quota must serve in government healthcare institutions for two years after graduation or pay a ₹20 lakh bond. Students admitted through the all-India quota are required to serve one year or pay the same amount.

Officials state that this measure aims to address a severe shortage of doctors in public hospitals — nearly 1,962 out of 3,847 general medical officer posts are currently unfilled. Punjab has a limited number of government medical colleges (four), while private institutions fill most seats. The health and medical education department believes that mandating service will attract more graduates to rural and underserved areas.

However, the bond policy has sparked strong criticism from student and professional bodies. The Medical Student Association of Punjab condemned it as "bonded labour," warning it may deter students, particularly from economically disadvantaged communities. The Resident Doctors Association and the Punjab Civil Medical Services Association highlighted that MBBS already includes a one-year internship and argued that the additional mandatory service is unfair. They urged the government to improve working conditions and recruitment methods instead of enforcing financial penalties.