Government Plans Another Tax, Seeks IMF Approval

Islamabad (M.Saleem Jutt) The federal government has decided to introduce a new municipal tax to finance the construction of a medical complex in Islamabad and has formally sought approval from the International Monetary Fund (IMF). According to sources, the IMF has requested further details on the government’s proposal.

The medical complex is estimated to cost PKR 213 billion and is planned to be completed within three years. However, the government is facing financial challenges in executing the project. To address this, it is considering the immediate release of PKR 30 billion from emergency funds and including the project in the Public Sector Development Programme (PSDP).

Additionally, the government is exploring the possibility of utilizing returns from USD 76 million Panda Bonds for the project. Sources confirmed that PKR 3.5 billion has already been allocated for the establishment of the Jinnah Medical Complex Company and recruitment of staff.

Federal Minister for Planning Ahsan Iqbal stated that alternative funding sources outside the PSDP would also be proposed for the project.

It is worth noting that earlier, the government had announced that savings from the decline in global oil prices would be spent on the construction and improvement of the N-25 National Highway connecting Quetta to Karachi