ISLAMABAD: The federal government has approached the International Monetary Fund (IMF) for permission to impose a new municipal tax in the federal capital to raise funds for the construction of the Rs 213 billion Jinnah Medical Complex and Research Centre.
The government is also considering using emergency funds from the budget to immediately provide at least Rs30 billion to start work on the project, English newspaper reporter Shahbaz Rana said, citing sources. The project is targeted to be completed in 3 years and will see the construction of a 1,000-bed hospital with modern facilities, in which various super-speciality centres of excellence (CoEs) will be set up.
The finance ministry has submitted a proposal for a new tax to the IMF, on which the fund has sought more details. At the same time, the government is also considering options such as Panda Bonds, supplementary grants, and transferring funds from other projects.
Federal Minister for Planning Ahsan Iqbal confirmed that the Executive Committee of the National Economic Council(ECNEC) has set up a committee to look into alternative sources to resolve funding issues. The minister said he would recommend funding the project outside the PSDP. The government has already provided an initial Rs3.5 billion to set up the Jinnah Medical Complex Company and recruit staff.
According to sources, the volume of federal development funding has now come down to just 0.8 per cent of GDP compared to 3 per cent a few years ago. The government is facing serious difficulties in allocating resources for the project due to the increasing funding requirements of various ministries and institutions.
The government is considering using the expected Rs21.5 billion from Panda Bonds. However, the Finance Ministry is of the view that this amount should be considered as part of the Rs1 trillion PSDP budget for the current fiscal year.
Jinnah Medical College Project details
According to the plan, the Jinnah Medical Complex will consist of a 15-storey building near the Islamabad International Airport. The first phase will be completed in 30 months after the funds are provided, while the second phase will be completed in 2 years.
The Health Ministry has suggested that the sources of funding include Panda Bonds, Corporate Social Responsibility (CSR) contributions of government agencies, and Islamabad Municipal Tax. However, the Planning Ministry says that so far, only indicative amounts have been given from these sources; there is no firm commitment.
According to the government, Pakistan has an average of only 5 hospitals for every 10,000 people, compared to 16 in India and between 9 and 22 in other countries in the region. There has been no significant increase in the construction of government hospitals since 1985, while Islamabad’s population has grown with no major health facilities.
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