Mr. Niamatullah Khan Advocate, President Al-Khidmat Welfare Society, Karachi laid the foundation stone of Al-Khidmat Hospital in 1994.

In the first phase, in 1996, the construction of ground floor was completed and General, Gynae OPD and specialists clinics started working.

In 1996, the eye-care unit was set up, with the help of Muslim Aid, the well-known welfare organisation of UK, which had provided huge amount for the purchase of equipment for Eye OPD and operation theatre. Mr. Tanzeem Wasti, the trustee of Muslim Aid paid a special visit to the Hospital, at the invitation of Project Director and expressed his satisfaction on the standard of facilities provided in the Hospital.

In 1997, the Muslim Aid donated a Suzuki Hi-roof Ambulance to the Hospital.

A 3-day eye camp was organised in the Hospital, in 1997. The organisers were Dr. Zakiuddin Sabiri, an eye-specilaist and member of the Project Committee and another renowned eye-specialist, Dr. Shahnawaz Munemi. Some 3000 people took benefit from the OPD of the camp, while more than 200 cataract operations were performed free of cost.

The construction of second floor was finished in 1998 wherein wards, labour rooms and operation theatre were built.

Maternity services started in the end of 1998.

The dental care centre was also introduced in 1998, being the pioneer welfare dental care centre of the vicinity.

The second phase of construction began in 2003.

The second phase was completed, in 2006.

More equipment was purchased, for the eye-care unit, in 2006, including the latest Pheccou Emulsification machine.

In 2008, Mr. Niamatullah Khan Advocate, the former City Nazim and President of Al-Khidmat Foundation laid the foundation stone of Al-Khidmat Diagnostic Centre, along with Muhammad Hussain Mehnti, Hameed Ullah Khan, Uzair Baig Qasmi, Dr. Faiyaz Alam and Dr. Ahsanullah Hussaini.