IMF wants Pakistan to tax the rich to protect poor

The International Monetary Fund (IMF) encouraged Pakistan on Wednesday to tax the wealthiest in order to provide relief to the poor.

IMF Managing Director Kristalina Georgieva told Geo News in an exclusive interview after meeting with caretaker Prime Minister Anwaar-ul-Haq Kakar, “Of course, it is difficult, but Pakistan has to do it in line with the IMF programme as we stand by the people of Pakistan.”

In response to a query, she stated that it is in the best interests of the people of Pakistan that the country revitalises its economy and addresses some of the “shortcomings” of the past, referring to the reforms that the lender is requesting.

Pakistan has agreed to a $3 billion bailout package with the IMF, as part of which it will restructure its ailing energy sector, implement reforms in state-owned firms, and enhance tax collection.

However, the government’s actions have made life difficult for the poor, since a large increase in energy and petrol prices has pushed inflation to a record high.

The IMF has rejected the caretaker government’s plans for relief in the face of increasing food and energy prices.

“Please allow me to send a simple message to everyone in Pakistan.” “What we are asking in our programme is that you collect more taxes from the wealthy and protect Pakistan’s poor people,” Kristalina Georgieva stated.

“I do believe that it is in line with what people in Pakistan would like to see for the country.”

‘Constructive dialogue’

Earlier, PM Kakar, who is in New York for the 78th United Nations General Assembly, described the discussion with the IMF chairman as “constructive.”

He stated that the meeting “emphasised extending our mutual commitment to bolstering Pakistan’s economic stability and growth.”

According to a statement published by the PM Office, the prime minister expressed gratitude for the IMF’s acceptance of the loan to help Pakistan’s economy.

Kakar informed the IMF chief of the government’s efforts to stabilise and revitalise the country’s economy.

“The prime minister reiterated that the goal of these initiatives is to create a stable and conducive environment for long-term economic growth and investment.” Furthermore, a considerable emphasis has been placed on protecting society’s most vulnerable sectors.”

In response, IMF Managing Director Kristalina Georgieva praised Pakistan’s concerted efforts to implement policies and reforms to revitalise the economy.

She assured Pakistan that the IMF was still committed to working with it.

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