The International Monetary Fund (IMF) has urged Pakistan to end subsidies for the upper class and increase tax collection from high earners.
In an interview with DW on Saturday, IMF Managing Director Kristalina Georgieva stated that Pakistan does not require debt restructuring, but rather strong measures to ensure the country’s stability.
Georgieva emphasized two key steps for Pakistan to take.
The first step is to increase tax revenue, with both the public and private sectors expected to pay more taxes, particularly those who earn more.
The second step is to provide subsidies only to those who genuinely require them.
“We are urging Pakistan to take the necessary steps to enable it to function as a stable country and prevent it from reaching a point where it must be rebuilt,” Georgieva stated.
Pakistan has received financial assistance from the IMF in the past and is presently in discussions with the organization to resume its loan program.
The IMF’s new demands are likely to be a contentious issue, as the Pakistani government has frequently stated its intention to reduce taxes and provide subsidies to low-income individuals.