TAX RICH AND PROTECT POOR, IMF CHIEF TELLS PAKISTAN

Thu 21 September 2023:

The International Monetary Fund (IMF) has urged cash-strapped Pakistan to increase its income through taxing the country’s rich, and protect the vulnerable in order to ensure economic stability.

The call was reiterated by IMF Managing Director Kristalina Georgieva who met Pakistan’s caretaker Prime Minister Anwaarul Haq Kakar on the sidelines of the UN General Assembly session in New York on Wednesday.

Grappling with soaring inflation and a deepening cost-of-living crisis, Pakistan secured a last-minute bailout from the loaning agency in July.

The South Asian country’s year-on-year inflation hit a record 38% in May before settling at 27.4% in August, triggering an increase in prices of essential items, including food and petroleum.

“Very good meeting with Pakistan’s PM Anwaar Kakar today on Pakistan’s economic prospects. We agreed on the vital need for strong policies to ensure stability, foster sustainable and inclusive growth, prioritize revenue collection, and protection for the most vulnerable in Pakistan,” Georgieva said in a post on X.

“What we are asking in our program is that please collect more taxes from the wealthy and please protect the poor people of Pakistan,” she told local broadcaster Geo News after meeting with Kakar.

“I do believe this is in line with what people in Pakistan would like to see for the country,” she further said.

Kakar, in a post on X, said he had a “constructive” dialogue with the IMF chief that emphasized “extending our mutual commitment towards bolstering economic stability and growth in Pakistan.”

In a statement from his office, Kakar said he briefed Georgieva on the various measures taken by his government to “stabilize and revive the country’s economy.”

The IMF found itself at the center of countrywide protests earlier this month after consumers received unusually inflated electricity bills, which, according to Islamabad, was the result of “tough IMF conditions.”

The government had promised to provide some relief to the groaning consumers but later backed out, citing Islamabad’s “commitments” with the loaning agency.

-Anadolu Agency

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