Khashif Talks Unlock Knowledge & Explore with Khashif Talks!
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has urged Pakistan to implement progressive taxation policies that target the wealthy and safeguard the interests of the nation’s impoverished citizens. Georgieva made this recommendation during her meeting with Interim Prime Minister Anwaarul Haq Kakar on the sidelines of the United Nations General Assembly (UNGA).
In an interview with a Pakistani private media channel following the meeting, Georgieva emphasized the importance of collecting more taxes from the affluent while simultaneously ensuring that vulnerable populations are shielded from economic hardships. She stated, “What we are asking in our program is that Pakistan should please collect more taxes from the wealthy and please protect the poor people of Pakistan.”
These remarks come at a critical juncture for Pakistan, as the country has been grappling with soaring inflation following a last-minute bailout from the IMF in July. Georgieva acknowledged that the task ahead is challenging but stressed that Pakistan must adhere to the IMF’s program, emphasizing the Fund’s commitment to the well-being of the Pakistani people.
Furthermore, Georgieva underscored the necessity of addressing past deficiencies and enacting reforms as per the IMF’s recommendations to revitalize Pakistan’s economy. She urged the country to address the “shortcomings” of its previous economic policies.
Both Prime Minister Kakar and Kristalina Georgieva later took to social media, specifically X (formerly Twitter), to share news of their constructive dialogue regarding Pakistan’s economic prospects.
The economic challenges facing Pakistan have been exacerbated by the $3 billion IMF tranche secured in July. Year-on-year inflation has soared to 27.4 percent, significantly straining household budgets. In August, exorbitant electricity bills triggered nationwide protests, while persistent increases in fuel prices have further burdened the population.
The caretaker government initially downplayed the issue of inflated bills, later making promises of relief but ultimately ruling it out, citing Pakistan’s commitments to the IMF. However, the Fund rejected the proposals put forth by the interim government to alleviate the hardships faced by the public amidst skyrocketing food and energy prices.
In addition to discussions about Pakistan’s economic challenges, Prime Minister Kakar also emphasized the importance of open access to scientific research. He called for scientific breakthroughs and discoveries to be made accessible to all of humanity, regardless of intellectual property rights. Kakar urged the international community to rise to the challenge of ensuring better preparedness for future pandemics through legally binding obligations to enhance global resilience.
He highlighted the unexpected nature of the COVID-19 pandemic, which led to lockdowns and significant loss of life worldwide. Kakar noted that, thanks to human ingenuity and targeted research, vaccines were developed, offering hope for the future.
However, the prime minister also expressed concerns about vaccine distribution disparities between wealthy and poorer nations, resistance from the corporate sector regarding intellectual property rights, and inequalities in financial support for recovery from COVID-19, both within and between countries.
In conclusion, Kristalina Georgieva’s call for progressive taxation to protect Pakistan’s vulnerable populations underscores the complex economic challenges facing the nation. As Pakistan navigates these challenges, it also advocates for equitable access to scientific research and global cooperation in preparing for future pandemics.
