Pakistan has sought the International Monetary Fund’s (IMF) approval to impose a municipal tax in Islamabad to help finance the Rs. 213 billion Jinnah Medical Complex and Research Center, a 1,000-bed tertiary care facility planned near the new Islamabad airport.
The project, which includes multiple Centers of Excellence, is targeted for completion by July 2028, according to a report in Express Tribune.
According to officials, the government is also weighing alternative funding options, including an immediate release of Rs. 30 billion from the contingency pool, supplementary budget grants, Panda bond proceeds, and corporate social responsibility contributions from state firms.
The Central Development Working Party (CDWP) has already instructed the health ministry to prepare a detailed financing plan.
Planning Minister Ahsan Iqbal said the Executive Committee of the National Economic Council (ECNEC) has formed a committee under his chairmanship to explore non-PSDP funding avenues and oversee project progress. He added that Rs. 3.5 billion in seed money has been released to set up a project company and staff.
The IMF has asked Pakistan for more details on the proposed tax. Its mission is scheduled to visit Islamabad from September 25 to October 8 to conduct the second review of Pakistan’s economy and decide on the release of a $1 billion loan tranche.
Read More: Pakistan to Begin Talks with IMF for $1 Billion Tranche This Month
The government is under pressure as development funding has shrunk to just 0.8% of GDP from 3% a few years ago. Officials said mobilizing Rs. 213 billion within three years remains a challenge, with only indicative commitments received so far.
