IMF chief says fiscal reforms key to Mideast stability

DUBAI — The International Monetary Fund's managing director is pressing the need for greater taxation and fiscal reforms as a pathway to political stability in the Middle East.

Speaking at the Global Women's Forum in Dubai on Tuesday, Christine Lagarde said oil-producing countries are facing a "new reality" amid lower global oil prices, and that economic stability requires job creation, strong taxation policies and the reorganization of public spending.

The IMF has urged countries across the Middle East, particularly the Gulf's oil-exporting nations, to reign back public spending by lifting lavish government subsidies, diversifying their economies and implementing new tax schemes.