Pakistan has been devastated by last year’s flood, and the International Monetary Fund (IMF) has asked the country to increase its tax revenues and provide subsidies only to those who truly need them. IMF Managing Director Kristalina Georgieva expressed her empathy for the people of Pakistan and stated that the country must take necessary steps to function effectively without the need for debt restructuring.
Georgieva highlighted the importance of increasing tax revenues from those who are making substantial profits in both the public and private sectors. She argued that subsidies should be provided to the poor, rather than the wealthy, and emphasized the IMF’s commitment to safeguarding the well-being of Pakistan’s vulnerable population.
In addition, Georgieva asserted that funds collected through taxation should be spent on those who require government assistance. She deemed this request both compassionate and reasonable, asking why the wealthy should benefit from subsidies when the country is facing such immense challenges.
The IMF’s message to Pakistan is clear: to maintain stability and avoid financial turmoil, the country must increase its tax revenues and allocate subsidies to the most deserving individuals.
