The International Monitory Fund (IMF) spokesperson reiterated IMF managing director remarks that Pakistan should burdenize wealthy segments of the society to tackle poverty and inequality.

“It's important for, as the Managing Director said, that the rich pay their taxes, tax to GDP ratio in Pakistan is very, very low and that the poor are protected in society,” the spokesperson said in press briefing.

“The poor and the vulnerable members of society are protected and I think her words in this were very clear,” she said.

Pakistan and IMF signed 9 month standby arrangement for an amount of $3 billion to support the Authority's Economic Stabilization program.

The objectives of the program are to provide a policy anchor for addressing domestic and external imbalances and a framework for financial support from other donors, multilateral and bilateral partners, including fresh financing and rollovers of debt coming due.

Policy reforms

Policy efforts center on the implementation of the fiscal year 2024 budget, appropriate monetary policy aimed at bringing inflation down, and continued reforms to improve the viability of the energy sector.

She said all of these reforms are ultimately aimed at paving the way for higher, more inclusive and more resilient growth.

The IMF spokesperson said these reforms were to support social development and climate resilience, the program envisages plans to strengthen public financial management, tax administration efforts, and to better prioritize public investment.

“All of this is being done with support from partners including not only the IMF but also the World Bank and the Asian Development Bank,” the spokesperson said.