The International Monetary Fund (IMF) has called upon Pakistan to take decisive measures to address its economic challenges, with a particular emphasis on increasing taxation on the wealthy and protecting vulnerable segments of the population.
This advice comes in the wake of a last-minute bailout received by Pakistan in July, which raised concerns about the country’s economic stability.
Kristalina Georgieva, the Managing Director of the IMF, delivered this message during her recent discussions with Pakistan’s interim Prime Minister Anwaar ul Haq Kakar on the sidelines of the UN General Assembly.
One of the most pressing issues facing Pakistan is its surging inflation rate. In August, the year-over-year inflation rate in the country soared to a staggering 27.4 percent. Such a sharp increase in prices has put a severe strain on household budgets, leaving many struggling to make ends meet.
The IMF’s recommendation to increase taxation on the wealthy is seen as a measure to address this inflationary pressure and to ensure that the burden of economic challenges does not fall disproportionately on the most vulnerable members of society.
In addition to the inflationary concerns, Pakistan has also been grappling with exorbitant electricity costs, which triggered nationwide protests during the month of August. Initially, the government had promised some relief to the public in response to these protests.
However, this commitment was later withdrawn, citing Pakistan’s obligations to the IMF. This decision raised further concerns among the populace.
Prime Minister Kakar, during his meeting with Kristalina Georgieva, expressed his gratitude for the approval of a $3 billion standby agreement by the IMF. This financial assistance is intended to bolster Pakistan’s economy and help it navigate through these turbulent economic times.
The Prime Minister also provided an overview of the various measures taken by the government to stabilize and revive the country’s economy, reaffirming Pakistan’s commitment to implementing necessary reforms.
The IMF’s commitment to continue engaging with Pakistan is an encouraging sign for the nation’s economic prospects. The approval of the $3 billion rescue program by the IMF’s
