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Author Archives: ISEJ

Is Pakistan on the way to live without IMF?

By Abdul Khaliq  (1 Dec 2018)- Pakistan is perhaps the only country in South Asia with a history of repeated engagements with the IMF – 21 loan agreements since 1959. The last one was concluded in September 2016. Despite that Pakistan’s economic woes hasn’t resolved. Its economy is still in worst shape, with debt is soaring, the current-account deficit is widening and foreign exchange reserves are falling; with just around $ 9 billion at the moment, not enough to cover ... Read More »

7th CADTM South Asia Workshop, 6-8 April 2018, Colombo Sri Lanka

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Colombo Declaration on Illegitimate Debts

(By CADTM – 8 April 2018) We, the participants of the 7th CADTM South Asia workshop from Bangladesh, Nepal, India, Pakistan, Sri Lanka, Japan as well as from Belgium and France gathered at Colombo, Sri Lanka from 6-8 April 2018 acknowledge and affirm that illegitimate debt is a mechanism used to transfer wealth created by toilers to the benefit of capitalists and other exploiting classes. We also declare that public debt (both external and internal) involves a massive transfer of wealth ... Read More »

Is Pakistan falling into China’s debt trap?

By Abdul Khaliq (16 April 2018) • Pakistan will have to payback $100 billion to China by 2024 of total investment of $18.5 billion, which China has invested on account of bank loans in 19 early harvest projects, under CPEC.• China has become the biggest lender to Pakistan after surpassing Japan. Pakistan owes $19 billion (1/5 of its total debt) to China. The CPEC loans will add $14 billion to Pakistan’s total public debt, totalling to $90 billion by June ... Read More »

How micro-finance impinge on human rights

By Philip Mader (13 November) This blog post is based on a talk given at the ETOC Conference on “Financialisation, Eco-Destruction, and Human Rights beyond Borders” in Brussels, September 28-29, 2017, and should not be regarded as an exhaustive academic paper but as food for thought.  Microfinance and financial inclusion are overlapping practices, and both are built on the same idea: that financial dealings with the poor will create a win-win arrangement of profits for financiers, and poverty alleviation and ... Read More »

CPEC – Losses & Gains

By Kaiser Bengali (September 10, 2017) The China Pakistan Economic Corridor (CPEC) does promise to be a game changer for Pakistan. It is a project of a magnitude that will change the economic geography of the country. An earlier project that changed the economic geography of the country was the Indus Water Works, which included the construction of Mangla and Tarbela dams along with thousands of kilometers of canals. Resultantly, two crops a year are now grown where not a blade ... Read More »

CPEC – A “game-changer” or another “East India Company”?

China-Pakistan Economic Corridor (CPEC) is a big business proposition with huge Chinese investments spreading over 15 years having a total outlay of up to $46 billion: $35 billion on the energy sector in the mode of IPPs (independent Power Producers) and $ 11 billion for infrastructure development; like industrial zones roads and railways etc. A good part of these investment projects comprises loans from Chinese banks, of which full details are not available, generating fears of further indebtness of already ... Read More »

Cambodia rejects paying ‘dirty debt’ to the US

By Vannarith Chheang (21 March 2017) The United States has renewed its demand for Cambodia to repay a war debt of $500m amid President Donald Trump’s push to improve the state budget. Such a demand has met with an outcry from Cambodian political leaders and their people, who have consistently called the debt “dirty” and “blood-stained”. Clearly, the memory of the United States’ war in Indochina continues to shape Cambodian perceptions of and foreign policy towards the US. Cambodia is reluctant to pay the debt. However, should ... Read More »

Ruthless borrowing: rising debt becoming unsustainable: economists

(13 November 2016): Pakistan””s rising debt is becoming unsustainable due to massive borrowing by the government to build foreign exchange reserves, opined former Advisors of Finance Ministry Dr Ashfaque Hassan Khan and Sakib Sherani here on Saturday. Speaking at the 3rd National Debt Conference organised by Policy Research Institute of Market Economy (PRIME), Dr Ashfaque stated that Pakistan””s external debt has reached $73 billion and is expected to increase to $81.3 billion by the end of 2016-17, $90 billion by ... Read More »

Three Waves of Debt Repudiations in the USA during19th Century

(By Eric Toussaint) – 7 November The United States, on three separate occasions, governments have successfully repudiated public debts owed to private bankers. In the 1830s, four of the United States repudiated their debts – Mississippi, Arkansas, Florida and Michigan. |1| The creditors were mainly British. Alexander Nahum Sack writes in this regard: “One of the main reasons justifying these repudiations was the squandering of the sums borrowed: they were usually borrowed to establish banks or build railways; but the banks failed and the ... Read More »