Recent Articles

Debt Justice

Saudis shower more aid to Pakistan

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(11 March 2016) Saudi Arabia increased financial assistance to Pakistan and signed an agreement of $122 million in economic aid on Thursday, the highest amount Riyadh has officially given to Islamabad in the last five years. The signing ceremony for the grant, which includes a $67 million package, took place the day Prime Minister Nawaz Sharif and army chief General Raheel Sharif were attending the closing ceremony of the multi-nation ‘Thunder of the North’ military exercise in Saudi Arabia. US budget ... Read More »

Pakistan Risk Surges as $50 Billion Debt Bill Coming Due: Bloomberg

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Faseeh Mangi  and Divya Patil (February 15, 2016) Bets are rising that Pakistan will default on its debt just as it starts to revive investor interest with a reduction in terrorist attacks. Credit default swaps protecting the nation’s debt against non-payment for five years surged 56 basis points last week to 620 points amid the global market sell-off, according to data compiled by Bloomberg. That’s the highest since January 2015 and the steepest jump after Greece, Venezuela and Portugal among ... Read More »

The scourge of rising inequality–A case of Pakistan

U.S. Army soldiers from the 16th Combat Aviation Brigade relocate Internally Displaced People from Matlatan to Rubicon in support of the Pakistan flood relief efforts in the Khyber-Pakhtunkhwa province of Pakistan Sept. 26, 2010. Starving Pakistanis and their children wait to be transported in a U.S. Army CH-47 Chinook helicopter. (U.S. Army photo by Staff Sgt. Wayne Gray/Released)

Abdul Khaliq (25 January 2016) The issue of inequality, which was shunted aside amidst rapid growth over the last few decades, has resurfaced with a vengeance, particularly after the global financial crisis. The trend has been rising in most of the countries despite rapid economic growth. Oxfam reports that by 2016 the 1% will control more wealth than the rest of the 99% and this gap is likely to widen. The impact is so severe that it has afflicted the ... Read More »

Debt domination is sophisticated violation of Human Rights

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(22 January 2016) Abdul Khaliq Shah is the Executive Director, Institute for Social & Economic Justice (ISEJ) and Focal person of Campaign for Abolition of Third World Debt (CADTM) Pakistan Chapter. Following is an edited transcript of the conversation BR Research had with Mr Abdul Khaliq.  BR Research: Tell us about your organisation?  Abdul Khaliq Shah: Institute for Social & Economic Justice (ISEJ) is not-for-profit, non-governmental organisation, registered under Societies Act 1860. It is made up of social activists and ... Read More »

Pakistan’s external debt set to grow to $90 billion by 2018

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(13 Dec 2015) Pakistan’s external debt is projected to grow to a whopping $90 billion in the next four years and the country will need $20 billion a year just to meet its external financing requirements amid concerns that all constitutional arrangements put in place to manage debt have become ineffective. The external debt figures compiled by renowned economist and the country’s former finance minister Dr Hafiz Pasha are about $14 billion higher than the projections made by the International ... Read More »

Pakistan: Privatisation proceeds to be used to clear off debt

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(27 Nov 15) The government informed the National Assembly on Friday that it planned to clear off its debt liabilities by selling public sector enterprises (PSEs). In an otherwise lackluster session, a parliamentary secretary claimed that PML-N had received people`s mandate on its election manifesto that included privatization of national entities. Finance Minister Ishaq Dar said in a written answer to a question that the total domestic debt stood at Rs18,093 billion at the end of September and Rs1,304bn was spent ... Read More »

Pakistan: Economic loss $107 billion: compensation $49.95 billion

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(By Mehtab Haider, 05/11/15): One may believe it or not but it is a fact that Pakistan has received only $708 million net transfers on annual basis in the shape of foreign loans and grants from all multilateral and bilateral creditors during the last 15 years under both military and democratic regimes. At a time when Islamabad is facing pressures on nuclear programme and other issues, the policymakers can make the US and its western allies realise that Islamabad had ... Read More »

Euro Bonds: Govt under fire over reckless borrowing at high rates

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(6 October 2015): Joining the ranks of others in criticising the government in its decision to raise $500 million through the Eurobond issue, All Pakistan Business Forum (APBF) President Ibrahim Qureshi has said the high mark-up rate would further plunge the country in expensive debt. He further said the current government has acquired a loan of about $3.5 billion by launching Eurobonds at excessive mark-up rate of 8.25 on average in just two years. Qureshi said that the recent move was surprising ... Read More »

Debt Limitation Act: 10 years on – where does Pakistan stand?

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By Tehreem Husain (September 28, 2015) The question of debt has been around for some time. The importance of debt towards economic growth, monetary and financial stability has received great attention after the onset of the global financial crisis. The financial crisis also prompted research into the history of debt –London School of Economics anthropologist David Graeber has written a thick book, ‘Debt: The First 5,000 Years’, presenting the thesis that even early humans belonging to agrarian empires used elaborate ... Read More »

Call for parliamentary debt audit commission

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Islamabad: (September 17, 2015) Pakistan’s economy has been paralysed by an unpayable and largely unjust debt burden that is preventing the country from reaching its poverty goals and hindering the development of democracy, says a paper launched by Islamic Relief Pakistan here on Wednesday during a conference on Pakistan’s national debt. The event was attended by members of parliament, diplomats, members of civil society, academia and media. Islamic Relief, a relief and development organization, has been running a campaign ‘Unlocking the ... Read More »