Islamabad ( The COW News Digital)The federal government of Pakistan is considering the imposition of yet another tax, this time seeking approval from the International Monetary Fund (IMF) to introduce a new municipal levy aimed at funding a major healthcare infrastructure project in Islamabad.
According to government sources, the proposed tax would help finance the construction of a state-of-the-art medical complex in the federal capital, estimated to cost around PKR 213 billion. The government has already submitted a formal request to the IMF, which has reportedly asked for more details before granting approval.
The ambitious medical complex project is part of the government’s long-term plan to improve healthcare facilities in Islamabad. Officials revealed that the project is expected to be completed over three years but faces significant financing hurdles. To address the funding gap, the government is considering releasing PKR 30 billion from its emergency funds.
Sources further disclosed that the Ministry of Finance intends to incorporate the project into the Public Sector Development Programme (PSDP) while exploring alternative financing options, including potential returns from USD 76 million worth of Panda Bonds.
The government has so far allocated PKR 3.5 billion as initial funding, which has been used for the establishment of the Jinnah Medical Complex Company and recruitment of staff. Planning Minister Ahsan Iqbal stated that the project could be financed through non-PSDP channels to avoid burdening the already constrained development budget.
This comes after the government previously announced plans to utilize savings from falling global oil prices to fund the improvement of the N-25 National Highway linking Quetta and Karachi. The new municipal tax plan, however, has raised concerns about an additional financial burden on citizens already grappling with inflation and rising utility tariffs.
Economic analysts say the move reflects Pakistan’s continued commitment to meeting IMF program requirements, which include expanding the country’s revenue base to reduce fiscal deficits. While the medical complex is widely seen as a crucial investment in public health infrastructure, critics argue that additional taxes could trigger public backlash.
The final decision on the tax will be made after the IMF reviews the government’s proposal and gives a green light, potentially during the lender’s next review mission later this month.
