MUNICH – Crisis hit Pakistan has been struggling with the massive economic crisis with a common man bearing the brunt of skyrocketing prices, and masses even skipping meals as the government taking desperate measures tabled by the global lender for economic revival.
Amid the worsening situation in the world’s fifth most populous nation, International Monetary Fund (IMF) chief Kristalina Georgieva shared her views, saying her ‘heart goes out to Pakistani people’. In her recent interaction with an international news outlet, she advised Islamabad to facilitate the underprivileged people and to impose higher taxes on the rich.
Georgueva admitted that a country of over 220 million has been hit hard by catastrophic floods. The financial institution had asked the Pakistan government to take steps to function as a country and not to get into a ‘dangerous place’ where the country’s debt needed to be restructured, she said.
Delving into details, the Bulgarian economist said those who are making good money, need to contribute to the country’s economy, as she called for a fairer distribution of the pressure by moving subsidies only toward the people who need them.
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
Pakistan and US-based lender reportedly evolved a consensus on fiscal framework, in another step for the disbursement of stalled loan tranche. The development comes as the coalition government takes key steps tabled by the global lender as it rolled out taxes to raise Rs170 billion.
With stringent measures in place, the two sides are likely to reach a staff-level agreement before the end of this month. It was reported that Islamabad and a US-based lender held virtual meetings on Thursday and reached a consensus on negotiations.
Tax on wedding functions, air tickets proposed as Pakistan unveils mini-budget to revive IMF deal
