Expect new govt in Pakistan to take 'very deep structural problems' seriously: IMF MD

Washington: IMF Managing Director Kristalina Georgieva has said that she expects the new government in Pakistan to take seriously solving its 'very deep structural problems' and help the cash-strapped country to reach its potential.

Her remarks came days after the International Monetary Fund (IMF) in its World Economic Outlook lowered Pakistan's economic growth forecast to two per cent for the current fiscal year, down 0.5 percentage points from its October estimate of 2.5 per cent.

Pakistan, currently facing an economic crisis, is set to hold its general elections on February 8. A caretaker government currently runs the cash-strapped country.

“What we expect is a government that would take seriously solving the very deep structural problems of Pakistan,” Georgieva told reporters during a media round table here.

“We see the problem we have with this caretaker government. They have done a good job of moving in the right direction. But of course, the problems of Pakistan are not solved. So more needs to happen,” she said in response to a question.

“I talked about countries having very low taxes to the GDP. Well, Pakistan is one of them. Not allowing rich people to pay their duty to society is not going to bring prosperity to Pakistan,” she said.

“We would like to see a government that is willing to do what is necessary for Pakistan to reach its potential. As you know, this is a country that can do much better in economic terms. We won't see that aspiration translating into government policy,”: Georgieva said in response to a question.