ISLAMABAD: The federal government is considering imposing new taxes in Islamabad to contribute to the operational costs of Jinnah Medical Complex and Research Centre, which will be built at H-16.

The Capital Development Authority (CDA) is executing the mega project of the Ministry of Health of the federal government.

Sources said that recently Prime Minister Shehbaz Sharif while chairing a meeting directed the attorney general of Pakistan, the law minister and the chairman of the CDA to finalise the draft legislation to impose the local taxes.

“Yes, a proposal for imposing taxes to meet operational cost of JMC and Research Centre is under consideration,” said an official source. He said before imposing the special taxes, legislation was required.

“I am not supposed to finalise the new taxes, but I guess these can be imposed on junk food and other unhealthy items such as cigarettes and smoking and on any unhealthy activity,” said the official source.

Official says taxes can be imposed on junk food and other unhealthy items

The PC-I worth Rs212 billion has already been approved for the medical complex and research centre. The project will be executed in two phases. In the first phase, a hospital will be built and in the second a medical college and other related facilities will be developed.

The CDA has already earmarked over 600 kanals in H-16 for the complex.

The CDA board recently also approved the bid of a consultant — a joint venture of Turkish and Pakistani company. Sources said that the CDA will soon issue a letter of acceptance to the JV for starting work on the first phase of the project worth Rs75 billion.

The consultant firm will review the design of the project and finalise the bidding documents for the construction work.

The project will be executed under the Engineering Procurement Construction (EPC) mode.

Meanwhile, the bidding for construction of the boundary wall of the JMC and research centre will be opened this week.

The groundbreaking ceremony for medical complex was performed by the prime minister on July 21, 2024.

Addressing the groundbreaking ceremony, the prime minister had said that the complex was going to be the region’s one of the best medical

centres where deserving people would get 100 per cent free medical treatment.

“This is the gift of the coalition government not only for the residents of Rawalpindi and Islamabad, but also for people from Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Gilgit-Baltistan,” Mr Sharif said, adding that once completed the medical complex would offer the world’s best healthcare facilities with various sections for diseases related to heart, kidneys, lungs, cancer and others.

Published in Dawn, September 8th, 2025

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Lebanon truce
Updated 25 Apr, 2026

Lebanon truce

THE fact that the truce between Israel and Lebanon has been extended for three weeks should be welcomed. But there...
Terrorism again
25 Apr, 2026

Terrorism again

THE elimination of 22 terrorists in an intelligence-based operation in Khyber highlights both the scale and ...
Taxing technology
25 Apr, 2026

Taxing technology

THE recent decision by the FBR’s Directorate General of Customs Valuation to increase the ‘assessed value’ of...
Pahalgam aftermath
24 Apr, 2026

Pahalgam aftermath

A YEAR after at least 26 people were killed in a terrorist attack in occupied Kashmir’s Pahalgam area, ties ...
Real estate power
24 Apr, 2026

Real estate power

THE latest round of land valuation revisions by the FBR for tax purposes signifies a familiar pattern that ...
Ad astra
Updated 24 Apr, 2026

Ad astra

AMONG the many developments this month that Pakistanis can take pride in is the news that one of their own will soon...