ISLAMABAD: The government of Pakistan has approached the International Monetary Fund (IMF) seeking approval to introduce a new tax through a mini-budget.
Sources indicate that the proposed levy, likely to be implemented via a money bill, is intended to serve as a municipal tax to fund the development of the Jinnah
Medical Complex in Islamabad. The government has already begun preparations for this tax amid concerns of an upcoming mini-budget.Officials revealed that the Jinnah Medical Complex is projected to cost around Rs213 billion, with an expected completion timeline of three years. Due to financial limitations, authorities are exploring various alternative sources of funding. The IMF has requested additional information regarding Pakistan’s request for the new tax.
Additionally, the government is contemplating releasing Rs30 billion from emergency funds to meet immediate needs. Federal Minister Ahsan Iqbal mentioned that external financing options outside the Public Sector Development Programme (PSDP) are also being considered, including supplementary grants, reallocating funds from other projects, and possibly utilizing returns from $76 million Panda bonds. The Ministry of Finance is advocating for the project’s inclusion within the PSDP framework.
So far, Rs3.5 billion has been designated to establish the Jinnah Medical Complex Company and commence recruitment of staff.
Meanwhile, an IMF team is scheduled to visit Pakistan from September 25 to October 8 for the second review of the country’s economic program under the Extended Fund Facility (EFF). According to sources, initial discussions will focus on technical aspects, followed by policy-level negotiations. The delegation will engage with various ministries including finance, energy, planning, as well as institutions such as the State Bank of Pakistan, FBR, OGRA, and NEPRA.
