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Islamabad may face new tax as city becomes autonomous entity

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Sources said that if the federal capital is made an independent unit, proposals have been created to introduce a new local tax in Islamabad and the revenue collected will be used on basic services and administrative structure within the city.

Early recommendations are for levies to fund hospitals, schools, colleges and other educational institutions, welfare operations and the administrative framework in Islamabad, sources added. The suggestions are likely to be addressed with the International Monetary Fund (IMF) team during the upcoming economic review while the new tax could be adopted in the budget of the next fiscal year.

No definitive estimate of amount to be collected has yet been prepared. Sources claimed the planned tax was aimed at generating fiscal room for Islamabad, considering the infrastructure requirements of the city.

The fifth review under the Extended Fund Facility (EFF) is scheduled to be reviewed in Pakistan’s next round of talks with the IMF. The fifth review is also listed as a program milestone in the IMF program materials.

Sources said that Federal Board of Revenue (FBR) will prepare tax suggestions in the first instance. These will be laid before the subcommittee created to study the question of taxation in connection with the infrastructure necessary to make of Islamabad an independent unit.

After approval by the relevant subcommittee, the recommendations will be referred to a committee chaired by the minister for planning. After approval there, the plans would be sent to Prime Minister Shehbaz Sharif and then completed after approval by the IMF.

The Ministry of Finance has asked all relevant ministries and agencies to collect the necessary data and reports in preparation for the economic review talks with the IMF.

The relevant ministries will brief the IMF delegation on structural benchmarks and targets for economic reform, sources added. Also reforms in the energy sector will continue to be an important element of the talks and targets relating to circular debt in the electricity and gas industry are also expected to be discussed.

Sources said that if the talks between Pakistan and the IMF were successful it would open the way for the delivery of the fifth tranche under the present loan arrangement. Upon successful completion of the evaluation, the total estimated distribution would be $1.2 billion. Under the fifth tranche, Pakistan is scheduled to receive roughly $1 billion, while another $200 million could be granted to mitigate losses caused by climate change.

According to reports, the planned roadmap also include a new mechanism for the utilization of municipal taxes and distribution of resources. The administrative structure is being put in place and financial affairs are being coordinated with the international lender’s recommendations likely to be part of the effort to make the tax system more effective.

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India’s Jio IPO opens for public bids in record $3.2 billion sale

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Jio Platforms’ (JIOP.NS) $3.2 billion IPO launches on Wednesday, testing demand for India’s largest share sale to date and the first from billionaire Mukesh Ambani’s Reliance (RELI.NS) conglomerate in two decades.

The Jio Platforms IPO will be a crucial test of global appetite for fresh share offerings at a time when investors have tightened their examination of AI-related companies which some analysts think might see them shifting away from the technology.

Jio Platforms, the parent of India’s biggest telecom firm with over 500 million subscribers, backed by Meta, ​Google and institutional investors, is the world’s second-largest telecom operator in a single country behind China Mobile.

The IPO ​values Jio Platforms at up to $108.3 billion, possibly making it one of India’s biggest corporations by market valuation when ​trading kicks out on October 28. About a third of the shares on offer are allocated for retail investors.

Jio Platforms this week allocated $853 million worth of shares to global and local investors including Abu Dhabi Investment Authority and BlackRock, after the reserved part for such investors attracted bids of more than $25 billion.

LAUNCH DATES FESTIVE

Retail investors and Reliance’s employees and stockholders will get a chance to join in the offering that closes Friday and has a price range of 1,065 to 1,119 rupees a share.
The IPO is Reliance’s first since 2006 and is larger than previous huge offerings such as Hyundai Motor India (HYUN.NS), opens new tab, and National Stock Exchange (NSEI.BO).

The plans were also delayed in 2025, when Ambani first said he planned to list in five years in 2019. A filing in as early as March was stymied by the Iran war sapping IPO enthusiasm.

Ambani’s son Akash runs Jio Platforms’ telecom company, which started in 2016 with the gamble that Indians would use the internet a lot more if it cost virtually nothing. It quickly seized market share from rivals like Bharti Airtel (BRTI.NS), opens new tab and Vodafone Idea (VODA.NS), opens new tab with cheap data ​and free voice calls.

Jio Platforms is selling its IPO in the middle of a Hindu festive season, seen as a lucky time for buying, although Indian markets have been dull in recent weeks.

Reliance this month also paid pay cheques approximately 15 days early to its more than 400,000 employees and in recent weeks helped expedite share account opening services to people interested in applying for the IPO, said a person in the business with direct knowledge of the situation.

Reliance did not immediately reply to a request for comment.

For the year ending in March, Jio Platforms posted a profit of $3.2 billion on revenue of $15.5 billion. Its telecoms division alone accounted for over 90% of those figures.

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Pakistan borrows Rs1,514bn in first quarter of FY2026-27

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Documents of the Ministry of Economic Affairs showed that the government borrowed Rs1,514 billion during first quarter of the current fiscal year 2026-27, July-September including Rs1,037 billion in September alone.

The data show that the government borrowed around Rs913 billion more in September 2026 than in September 2025.

The documents showed that the government sold $3 billion worth of bonds in September. Of this, $1.75 billion of bonds have an interest rate of 7.5% and the rest $1.25 billion have an interest rate of 7.9%. The bonds will maturity in 2036.

The Ministry of Economic Affairs said the revenues from the issuing of the $3 billion bond could be utilised for budget support, with the Ministry of Finance as the executing agency. The amount is around Rs818 billion in local currency.

Besides the bonds, the government borrowed Rs17 billion through non-project finance, which comprises budget support and short-term loans.

“The documents also revealed that the government obtained $5.44 billion in foreign loans and grants from July to September. This was up $3.63 billion from the $1.81 billion received in the same time of the last fiscal year.

In the first quarter, the government also obtained a $300 million medium-term financing arrangement from an international commercial bank.

The Economic Affairs Division said the funds mobilised through the Naya Pakistan Certificates had witnessed a massive surge during the first quarter of the current fiscal year. During the period, Naya Pakistan Certificates worth $942.7 million were issued.

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PSX gains over 400 points at opening

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— The Pakistan Stock Exchange (PSX) kicked off on a bullish note on Tuesday with the benchmark KSE-100 Index rising more than 400 points in early trade.

The index rose to 166,425 points at the start of the second trading session of the business week, indicating better market performance.

The KSE-100 Index closed down 453 points at 165,966 points in the last trading session.

The benchmark index turned positive during early trading after falling in the previous session. The latest gains were made as the benchmark index went into positive territory during early trading.

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