International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that Pakistan needs to take steps to be able to function as a country and not to get into a dangerous place where its debt needs to be restructured, stressing the country to protect the poor and tax the wealthy while ensuring that subsidies are targeting those who really need them.
In an interview on the sidelines of the Munich Security Conference on Friday, the IMF chief said: “What we are asking for are steps Pakistan needs to take to be able to function as a country and not to get into a dangerous place where its debt needs to be restructured,” she said.
“I want to stress that we are emphasizing two things,” she added “Number one, tax revenues. Those who can, those that are making good money [in the] public or private sector need to contribute to the economy. Secondly, to have a fairer distribution of the pressures by moving subsidies only towards the people who really need it.”
Pakistan is confronting an acute economic crisis and seeking IMF help. The Fund’s chief Kristalina Georgieva speaks to DW at the Munich Security Conference. pic.twitter.com/0VLZHlyL2W
— DW Asia (@dw_hotspotasia) February 17, 2023
She urged Pakistan to make sure only the poor benefit from the subsidies. “The Fund is very clear. We want the poor people of Pakistan to be protected.” She added.
From January 31 to February 9 in Islamabad, Pakistan underwent ten days of intensive negotiations with a delegation from the IMF, but no agreement was reached.
The country’s reserves have been depleted to a critically low level of $2.9 billion, which experts think is only enough for 16 or 17 days of imports, and the administration is in a race against time to implement the tax measures and reach a deal with the IMF.
Not only would there be a disbursement of $1.2 billion as a result of the agreement with the IMF on the conclusion of the ninth review of a $7 billion loan program, but it would also enable inflows from friendly nations.
