Speaking to German broadcaster Deutsche Welle at the Munich Security Conference, Kristalina Georgieva, IMF Managing Director, entreated Pakistan to take vital steps with a purpose to function as a country and avoid getting into a dangerous place where its debts need to be restructured.
The assertion comes days after Pakistan and the worldwide lender failed to reach a staff level agreement within the stipulated time to restore a stalled $6.5 billion bailout package. However, both sides agreed on a set of measures that can still help clinch the deal to keep away from a looming default.
Furthermore, the Pakistani authorities had hoped that they would persuade the IMF about its good intentions concerning implementation of all outstanding conditions in a slow manner. But the hopes were dashed during the 10-day visit by the IMF mission, which ended on February 9 without a staff level settlement.
Speaking at the Munich Conference, Georgieva gave more details of the measures that the global lender is anticipating Pakistan’s government to ensure.
“I want to stress that we are emphasising two things. Number 1: tax revenues. Those who can, those that are making good money, need to contribute to the economy. Secondly, to have a fairer distribution of the pressure by moving subsidies only towards the people who really need them,” the IMF chief stated, referring to the IMF’s conditions for the revival of the stalled bailout package.