Islamabad: Cash-strapped Pakistan must take steps to ensure that its high earners pay taxes and only the poor receive subsidies if it wants to function as a country.
In an interview with German state broadcaster Deutsche Welle on the sidelines of the Munich Security Conference in Germany on Friday, IMF chief Kristalina Georgieva said Pakistan needed to take tougher steps to avoid going into a “dangerous place” where its debt could go into debt. needs to be reorganized. ,
He said the IMF was very clear that it wanted to protect the poor people of Pakistan, Dawn newspaper reported,
“It should not be that the rich benefit from the subsidy. it must be poor [who] benefit from them,” she said.
He said, “What we are demanding are the steps that Pakistan needs to take in order to be able to function as a country and not get into a dangerous situation where its debt needs to be restructured.” Is.”
He said Pakistan was devastated by flash floods last year, which affected one-third of its population.
“I want to stress that we’re pushing for two things. Number one: tax revenue. Those who can, who are making good money [in the] The public or private sector needs to contribute to the economy.
“Secondly, fair distribution of pressures by taking the subsidy only towards those who really need it. It should not be that the subsidy benefits the rich,” she said.
The IMF chief’s statement came days after both sides completed the ninth review of the $6.5 billion bailout package without a staff-level agreement after 10 days of talks. However, both sides agreed on a set of measures that could still help in achieving the deal.
Pakistan, which is in dire need of funds as it is reeling under a severe economic crisis, has received financial aid from the IMF in the past and is currently in discussions with the organization to restart its loan program .
An agreement on the program’s ninth review would release more than $1.1 billion. The restoration of the IMF program will also open up other funding avenues for Pakistan.
Meanwhile, the State Bank of Pakistan’s foreign exchange reserves have declined by about $3 billion, barely enough to cover three weeks of controlled imports.
Earlier, the IMF said in a statement that the two sides have agreed to remain engaged and “virtual discussions will continue in the coming days to finalize implementation details” of policies, including tax measures, discussed in Islamabad.
The government is in a race against time to implement tax measures and reach an agreement with the IMF. The IMF has given Pakistan a March 1 deadline to implement all the measures.
In an interview with German state broadcaster Deutsche Welle on the sidelines of the Munich Security Conference in Germany on Friday, IMF chief Kristalina Georgieva said Pakistan needed to take tougher steps to avoid going into a “dangerous place” where its debt could go into debt. needs to be reorganized. ,
He said the IMF was very clear that it wanted to protect the poor people of Pakistan, Dawn newspaper reported,
“It should not be that the rich benefit from the subsidy. it must be poor [who] benefit from them,” she said.
He said, “What we are demanding are the steps that Pakistan needs to take in order to be able to function as a country and not get into a dangerous situation where its debt needs to be restructured.” Is.”
He said Pakistan was devastated by flash floods last year, which affected one-third of its population.
“I want to stress that we’re pushing for two things. Number one: tax revenue. Those who can, who are making good money [in the] The public or private sector needs to contribute to the economy.
“Secondly, fair distribution of pressures by taking the subsidy only towards those who really need it. It should not be that the subsidy benefits the rich,” she said.
The IMF chief’s statement came days after both sides completed the ninth review of the $6.5 billion bailout package without a staff-level agreement after 10 days of talks. However, both sides agreed on a set of measures that could still help in achieving the deal.
Pakistan, which is in dire need of funds as it is reeling under a severe economic crisis, has received financial aid from the IMF in the past and is currently in discussions with the organization to restart its loan program .
An agreement on the program’s ninth review would release more than $1.1 billion. The restoration of the IMF program will also open up other funding avenues for Pakistan.
Meanwhile, the State Bank of Pakistan’s foreign exchange reserves have declined by about $3 billion, barely enough to cover three weeks of controlled imports.
Earlier, the IMF said in a statement that the two sides have agreed to remain engaged and “virtual discussions will continue in the coming days to finalize implementation details” of policies, including tax measures, discussed in Islamabad.
The government is in a race against time to implement tax measures and reach an agreement with the IMF. The IMF has given Pakistan a March 1 deadline to implement all the measures.