Pakistan Mulls Tax for Jinnah Medical Complex
Govt Plans New Tax to Fund Jinnah Medical Complex in Islamabad
ISLAMABAD — The federal government is preparing to introduce a new municipal tax, likely through a money bill, to help finance the construction of the Jinnah Medical Complex in the capital, sources told reporters.
The proposed project carries a hefty price tag of Rs213 billion and is expected to be completed within three years. While groundwork for the tax has already begun, officials fear it could trigger another mini-budget at a time of economic strain.
According to insiders, the government is exploring multiple funding options to ease financial pressure. These include supplementary grants, diversion of funds from other projects, and returns from $76 million worth of Panda bonds. The Ministry of Finance is also pushing to integrate the project into the Public Sector Development Programme (PSDP).
In the short term, Rs30 billion may be released from emergency funds to cover immediate needs. So far, Rs3.5 billion has already been allocated to set up the Jinnah Medical Complex Company and begin staff recruitment.
Planning Minister Ahsan Iqbal has indicated that external financing outside the PSDP could also be considered. Meanwhile, the International Monetary Fund (IMF) has sought further details on the government’s plan to raise funds for the project.
The IMF delegation is scheduled to visit Pakistan from September 25 to October 8 for the second economic review under the Extended Fund Facility (EFF). The mission will begin with technical-level discussions, followed by policy-level talks with key ministries and institutions, including the finance, energy, and planning ministries, the State Bank of Pakistan, FBR, OGRA, and NEPRA.
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