The government has formally sought the International Monetary Fund’s (IMF) approval to introduce a new municipal tax to finance the Rs 213 billion Jinnah Medical Complex in Islamabad. The IMF review mission will remain in Islamabad from September 25 to October 8, during which it will assess the proposal.
Funding Challenges and Alternatives
The project has encountered hurdles due to IMF’s condition of generating sufficient resources within three years. In response, the Executive Committee of the National Economic Council (ECNEC) has established a committee to explore funding options. Officials are considering the release of Rs30 billion from the emergency budget as an alternative source of financing.
Municipal Taxation Proposal
To address long-term funding gaps, the Finance Ministry has recommended the imposition of municipal taxation as a dedicated revenue stream. The IMF has asked the government for further details before granting approval.
Project Scope and Timeline
The Jinnah Medical Complex is designed to include 1,000 beds and state-of-the-art medical facilities. Authorities aim to complete the project by mid-2028. An initial allocation of Rs3.5 billion has already been made for company formation and staff recruitment.
Flood Victims’ Relief Proposal
Separately, Prime Minister Shehbaz Sharif has directed the Finance Ministry to negotiate with the IMF on granting a one-month electricity bill exemption for flood-affected regions. If approved, this measure would provide immediate relief to disaster-hit households.
