Amid Economic Crisis, Pakistan Taxing Its Own Citizens For IMF Deal

Pakistan is on the verge of an economic collapse and has changed its policies in accordance with the International Monetary Fund's requirements in an effort to release a USD 6.5 billion loan facility tranche in order to address the financial crisis. The country's economy is currently in a "tailspin" due to the IMF's holdup in releasing financing.

According to News International, a Pakistani newspaper, the financial organisation with its headquarters in Washington recently urged Pakistan to take action in order to "operate as a country" and avoid getting into a dangerous position that would require debt restructuring.

IMF Managing Director Kristalina Georgieva has also highlighted two measures that Pakistan should take to prevent economic collapse and secure a loan from the global institution.

She initially advocated increasing tax collections because individuals earning well in the public or private sectors should contribute to the economy. 

Second, she suggested removing subsidies from those who don't require them in order to distribute scarce resources more fairly.