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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Editor's choice A selection of our best pictures from the past 24 hours. Full Article Read Low inflation rate bites millions of retirees 11:20am EDT Wall St blames homeowners in foreclosure fiasco 14 Oct 2010 PREVIEW-Apple's earnings to showcase one-two punch 1:40pm EDT Judge lets states' healthcare suit go forward 14 Oct 2010 Fuel to Paris reduced as French protests escalate 1:15pm EDT Discussed 203 California governor debate turns into verbal brawl 93 U.S. judge allows states’ healthcare suit to proceed 80 U.S. is currency war’s ”tomb maker”: China economist Watched A fuel bringing Mars within range? Thu, Oct 14 2010 Red faces over top model gaffe Tue, Sep 28 2010 South Korean boyband TVXQ reunites Wed, Oct 13 2010 Pakistan to press on with tax reforms after floods Tweet This Share on LinkedIn Share on Facebook Related News Pakistan reforms needed for flood aid: World Bank 1:01pm EDT Analysis & Opinion USAID’s PR problem Claiming Jinnah’s mantle: Musharraf joins the queue Related Topics World » By Justyna Pawlak BRUSSELS | Fri Oct 15, 2010 1:02pm EDT BRUSSELS (Reuters) - Pakistan will press on with tax reforms which the United States considers vital for financing relief efforts after devastating floods, Foreign Minister Shah Mehmood Qureshi said on Friday. U.S. Secretary of State Hillary Clinton said this week it was absolutely unacceptable that Pakistan's wealthy were not paying more for flood relief and urged Islamabad to include tax improvements in democratic and economic reforms. Speaking in Brussels after a conference on Pakistan, Qureshi said his government recognized the need to broaden the country's tax base and was building consensus for the issue. "Regardless of what Hillary Clinton says, we are going to do what is right for Pakistan and I think the tax system has to be more equitable," he told reporters after meeting officials from the European Union, the United States and other countries. "We have to correct that," he said. The floods caused $9.5 billion in damage to property, crops and infrastructure, according to the Asian Development Bank and World Bank. Finance ministry officials say the government may face total recovery costs of $30 billion. But U.S. officials have said Pakistan's economic reforms, linked to the release of the next tranche of an $11 billion International Monetary Fund bailout program, are not moving fast enough. Adnan Mazarei, the IMF's mission chief for Pakistan, has said the country's taxation system is "very unfair and inequitable" because the rich often avoid paying taxes. EU foreign policy chief Catherine Ashton reiterated the need for more change in Pakistan but said she trusted Islamabad was taking the concerns seriously. "It's been part and parcel underpinning the dialogue," she said after Friday's meeting. The United States has also voiced concern that Pakistan's fight against Islamist militants inside its borders, which Washington sees as essential in the wider U.S.-led war against the Taliban in neighboring Afghanistan, may suffer as resources and official attention are diverted by the flood disaster. "Pakistan is under extraordinary pressures, internal and external," Richard Holbrooke, the U.S. envoy to Afghanistan and Pakistan, told reporters in Brussels. But he added: "The U.S. government is under tremendous pressure, the EU is under budget pressure, we have our own infrastructure problems ... We will help Pakistan but we cannot do everything in the reconstruction phase." Pakistan's tax-to-GDP ratio is about 10 percent, one of the lowest in the world. The floods, which began in July, left more than 10 million people homeless in Pakistan. They devastated the country's economy, already fragile before the disaster. World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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