Tax rich, protect poor: IMF to cash-strapped Pakistan

New York/Islamabad, Sept 21

IMF Managing Director Kristalina Georgieva has urged Pakistan to collect more taxes from the wealthy and protect the poor people, as the cash-strapped country reels under double-digit inflation after securing a bailout from the global lender in July, media reports said on Thursday. Speaking to Geo News after meeting Interim PM Anwaarul Haq Kakar on the sidelines of the 78th UN General Assembly (UNGA) session in New York, Georgieva said it was in the interest of the people of Pakistan that the country revitalises its economy and addresses some of the “shortcomings” of the past.

Her comments come amid soaring inflation in Pakistan after the Washington-based global lender transferred USD 1.2 billion to the country in July, a part of the USD 3 billion bailout programme for nine months to support the government’s efforts to stabilise the country’s ailing economy.

The steps taken by the government to get the IMF’s approval made lives difficult for the masses, as a massive hike in electricity and petrol prices pushed inflation to a record level, the report said.

Pakistan’s inflation leapt to 27.4 per cent in the month of August. Caretaker Prime Minister Kakar posted on X, terming his meeting with Georgieva a “constructive dialogue” and said it “emphasised extending our mutual commitment towards bolstering economic stability and growth in Pakistan.”

According to The Express Tribune newspaper, an official handout released by the Prime Minister’s Office said Kakar expressed gratitude for the global lender’s approval of the USD 3 billion standby agreement to support Pakistan’s economy.

The handout said the premier briefed Georgieva on the various measures taken by the government to “stabilise and revive the country’s economy”. — PTI

27.4% inflation

• Pakistan’s inflation leapt to 27.4 per cent in the month of August. In July, the IMF transferred USD 1.2 billion to Pakistan, a part of the USD 3 billion bailout programme to support the government’s efforts to stabilise its economy.
• Caretaker PM briefs IMF MD on various measures taken by the government to “revive the country’s economy”.

Address shortcomings, Islamabad told

It’s in Pak’s interest to revitalise its economy and address shortcomings of the past. — Kristalina Georgieva, IMF MD