International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Wednesday urged the Government of Pakistan to “please collect more taxes from the wealthy and please protect the poor people” of Pakistan, stressing she believed this was in line with what the country’s citizens wished.
In a brief interview with Geo News after a meeting with caretaker Prime Minister Anwaarul Haq Kakar on the sidelines of the U.N. General Assembly meeting in New York, she said this was what the global lender had asked for in its program with Pakistan.
Earlier this year, after months of uncertainty, Pakistan inked a $3 billion Standby Arrangement with the IMF seen as critical to averting default. The government’s commitments to the lender, however, have resulted in massive increases to electricity bills, boosting already high inflation, with an increasingly burdened populace demonstrating nationwide and demanding relief. The interim government had earlier vowed to reduce the burden on the public, but has since reneged on its claims by blaming commitments with the IMF.
In a posting on X, formerly Twitter, the IMF chief reiterated her stance, describing as “very good” her meeting with Kakar 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,” she wrote. Similarly, the interim prime minister wrote in his own post that he had held “constructive dialogue” with Georgieva. He said it had “emphasized extending our mutual commitment towards bolstering economic stability and growth in Pakistan.”
An official statement issued by the Prime Minister’s Office, meanwhile, said Kakar had expressed gratitude for the IMF’s approval of the $3 billion SBA to support Pakistan’s economy. It said he had briefed the IMF chief on various measures taken by the government to stabilize and revive the country’s economy and affirmed that these initiatives sought to create a stable and conducive environment for sustainable economic growth and investment. “Additionally, a strong focus had been placed on protecting the vulnerable segments of society,” it said, adding the IMF official had appreciated Pakistan’s concerted efforts in implement policies and reforms to revive the economy. “She assured that the IMF remained committed to continued engagement with Pakistan,” it added.
Pakistan is set to meet with the IMF for a quarterly review in November. If proven successful, it would lead to the release of roughly $900 million. In June, when the deal was inked, the lender had approved an immediate disbursement of $1.2 billion.