IMF Managing Director Kristalina Georgieva expressed these views while giving an interview to an international broadcaster.
Georgieva said the IMF has suggested Pakistan take action to maintain its ability to function as a country and avoid falling into a dangerous situation that would require debt restructuring.
"My thoughts are with Pakistan's people. One-third of the country's population was hit by the floods, which have left them in ruins," she added.
"We place a strong emphasis on two things: first, increasing tax revenues because people who earn well in the public or private sectors must support the economy. The second goal is to distribute limited resources by allocating subsidies solely to those who actually require them. The wealthy shouldn't receive subsidies, it shouldn't be that way. The impoverished ought to gain from them, she said.
She said, "We want the poor people of Pakistan to be protected."
It is pertinent to mention here that there are only around 3.5 million return filers out of over 200 million population, so there is a need for broadening the narrow tax base.
The government announced the mini-budget as per the IMF's recommendations, imposing additional taxes totaling Rs170 billion, and it was anticipated that the National Assembly would approve it on Monday (today).
Second, the IMF has stressed the necessity of eliminating unintended subsidies and directing resources so that the underprivileged can make use of them.
The government eliminated the Kissan package and the electricity sector subsidies for export-oriented industries as part of the IMF agreement.
The government asked the IMF to provide an adjustment on the Rs472 billion in flood-related expenses, and the IMF mission complied.