Collect more taxes from the rich, says IMF MD

NEW YORK: In a recent development, International Monetary Fund (IMF) Managing Director Kristalina Georgieva reiterated the IMF’s stance, emphasizing the importance of Pakistan’s focus on increasing tax revenue from the affluent and safeguarding the welfare of the less privileged.

Georgieva delivered this message to the press following her meeting with Caretaker Prime Minister Anwaar-ul-Haq Kakar during the 78th session of the United Nations General Assembly (UNGA).

“In our program, our primary request is for Pakistan to enhance tax collection from the wealthier segments of society and to ensure the protection of the economically disadvantaged citizens of Pakistan. I firmly believe that this aligns with the aspirations of the Pakistani populace for their nation,” stated Georgieva in a brief statement.

In a social media post, Georgieva underscored the consensus reached during the meeting regarding the critical necessity of implementing robust policies to ensure stability, promote sustainable and inclusive growth, prioritize revenue collection, and provide protection for the most vulnerable segments of the Pakistani population.

Very good meeting with Pakistan’s PM @anwaar_kakar today on 🇵🇰’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. pic.twitter.com/YkVpju4UqY

— Kristalina Georgieva (@KGeorgieva) September 20, 2023

Earlier this year, IMF Managing Director Georgieva issued a similar directive, urging Pakistan to augment its tax revenues and achieve a more equitable distribution of subsidies by targeting them exclusively toward those in genuine need. She stressed that subsidies should benefit the underprivileged rather than the affluent, reiterating the IMF’s commitment to the protection of Pakistan’s less fortunate citizens.

Prime Minister Kakar, in a subsequent social media update, described his dialogue with IMF Managing Director Georgieva as constructive and highlighted their mutual dedication to reinforcing economic stability and growth in Pakistan.

Had a constructive dialogue with Ms. Kristalina Georgieva, Managing Director of the IMF, at the #UNGA78, that emphasized extending our mutual commitment towards bolstering economic stability and growth in Pakistan. pic.twitter.com/u8kJX8Eqga

— Anwaar ul Haq Kakar (@anwaar_kakar) September 20, 2023

It is worth noting that both the current caretaker government and the previous coalition government led by Shehbaz Sharif have maintained that they are unable to provide tax relief due to their participation in an IMF program. However, this marks the second occasion where IMF Managing Director Georgieva has reiterated the Fund’s call for Pakistan to increase tax collection from the wealthy and safeguard the well-being of the economically disadvantaged.

In July, the IMF approved a 9-month Stand-By Arrangement (SBA) for Pakistan, providing approximately $3 billion in support for the country’s economic stabilization program.