Protests Erupt in Pakistan Following 40% Tax Hike Amid IMF Bailout
Protests have erupted in Pakistan following a 40% tax hike implemented as part of an IMF bailout. Prime Minister Shehbaz Sharif, whose coalition government has been in power for just seven months, is calling for patience in a nation struggling to cope with economic challenges.
On the surface, Pakistan’s agreement with the International Monetary Fund for a $7 billion bailout appeared unavoidable due to severe inflation, dwindling foreign currency reserves, and other economic pressures pushing the country toward default.
However, the details of the IMF program, particularly the unprecedented tax increase, have sparked widespread alarm. Prior to the agreement, electricity prices tripled for some, and the cost of milk in Karachi exceeded prices in Paris. Many citizens are now spending over half their income on food, with essentials from rice to shoes becoming increasingly unaffordable for the shrinking middle class.
