Pakistan has asked the International Monetary Fund (IMF) to allow a new municipal tax through a mini-budget. This tax will help fund the Jinnah Medical Complex, a major healthcare project in Islamabad costing Rs213 billion.
The Jinnah Medical Complex is a new healthcare facility planned for Islamabad. It aims to improve medical services in the capital. The project will take three years to complete. Due to limited funds, the government is exploring new ways to pay for it, including the proposed tax.
The government faces financial challenges, but has several plans to fund the complex:
- Emergency Funds: Release Rs30 billion from emergency reserves for urgent needs.
- Other Funding Sources: Federal Minister Ahsan Iqbal suggests finding money outside the Public Sector Development Programme (PSDP).
- Panda Bonds and Grants: Use returns from $76 million in Panda bonds or redirect funds from other projects.
- PSDP Inclusion: The Ministry of Finance wants to add the project to the PSDP budget.
So far, Rs3.5 billion has been spent to set up the Jinnah Medical Complex Company and hire staff.
The IMF has asked for more details about the tax plan. A team from the IMF will visit Pakistan from September 25 to October 8, 2025, to review the economy under the Extended Fund Facility (EFF). The visit will include:
- Technical Talks: Early discussions to check the tax plan’s details.
- Policy Meetings: Talks with the Ministries of Finance, Energy, and Planning, plus the State Bank of Pakistan, Federal Board of Revenue (FBR), and other agencies.
Adding a new tax could affect Pakistan’s economy. The Jinnah Medical Complex is crucial for improving healthcare, but the government must address budget challenges and garner public support. The IMF’s review will check if these plans are sustainable
Read: Pakistan Plans Debt Maturity Extension to Meet IMF Requirements
Pakistan’s plan for a new tax shows its commitment to building the Jinnah Medical Complex. As the IMF review nears, the country awaits decisions that could shape its healthcare and economy. Stay updated on the IMF’s visit starting September 25.
