Recent Articles

Debt Justice

$6.5 billion China loan for Pakistan N-plants

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Pakistan has signed a $6.5 billion `concessionary loan` agreement with China for projects under civil nuclear cooperation, including development of two power plants near Karachi of 2,200MW, Prime Minister Nawaz Sharif said `This is a very big loan that China has extended. It is very cheap and will ensure uninterrupted power supply, he said at a briefing on the economic situation for members of his cabinet and the media. Finance Minister Ishaq Dar made a detailed presentation. But the prime ... Read More »

Foreign Debt, Barrier to Development: press conference

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Special Correspondent, London (Tuesday, 05 November, 2013) It is essential for progress and prosperity of the country that Pakistan must get rid of all loans which it has borrowed from IMF and other similar agencies. A large chunk of Pakistan’s resources is consumed for paying the debts. New loans are borrowed on harsher conditions to pay off the previous debts. This may lead to further deterioration of economic condition. These views were expressed by the office bearers of Islamic Relief ... Read More »

Back to the IMF: Tough days ahead for Pakistan

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THE inevitable has to happen. When? It may happen next month, or take another couple of months. The Nawaz Sharif government has to knock at the IMF’s doors to obtain another loan to pay back in the next 12 months what is already owed to the lender. Finance Minister Ishaq Dar hinted at this eventuality several times in recent weeks. There’s no harm in taking new loans to pay off old ones, he was quoted as having said during his ... Read More »

The debts taken in our name

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(By Najma Sadeque) Why does Pakistan routinely consider IMF-style austerity which decision-makers and well-off don’t suffer? Because, as well known, those with ulterior motives don’t have to repay. Mostly the hapless taxpayers do. Every time another loan is taken, it never eases economic problems. In fact, money doesn’t even change hands. It’s just a ledger entry in Washington of what’s lent by the IMF and immediately ‘returned’ to pay the current year’s usury. What we should say instead is: “Sorry ... Read More »

Pakistan suffers $100 billion losses in ‘war on terror’

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(June 3rd 2013) The government of Pakistan is making efforts to calculate latest estimates of losses borne by Pakistan in the last 12 years after becoming an ally of US-led war on terrorism since 9/11 2001. These mind-boggling figures, which are in the process of finalization, might be released in the upcoming Economic Survey 2012-13, which will be launched just ahead of next budget announcement. The decision to insert latest estimates on war on terror will be taken by the ... Read More »

Cancel Pakistan’s Debt: An urgent petition

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(IRC-Jubilee Debt UK) The people of Pakistan have suffered from a crippling debt for 40 years. This debt has done little for the majority of Pakistan’s people – instead it has increased inequality and deepened impoverishment. Today, 50 million people in Pakistan live below the poverty line- BUT if we get behind them now — following the recent change of government, we can start to change this The global financial crisis, the horrific floods of 2010 and the so-called ‘war ... Read More »

Campaigners call for public audit of Pakistan debt

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(IRC-Jubilee Debt Campaign) Pakistan’s economy has been paralysed by an unpayable and largely unjust debt burden that is preventing the country reaching its poverty goals and hindering the development of democracy, says a new report from Jubilee Debt Campaign and Islamic Relief. Unlocking the Chains of Debt criticises the IMF for the crippling conditions to its loans and calls for repayments to be frozen while the legitimacy of all debts is investigated. The report will be published on Tuesday May ... Read More »

IMF loan to Pakistan surges by 20%, as Pak Rupee erodes

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International Monetary Fund (IMF) loan to Pakistan has increased by 20 percent due to the persistent fall in the value of Pak rupee against US dollar during the last four years, Geo News reported on 5th Dec 2012 (Wednesday). Pakistan has already paid back $2.28 billion to IMF, while $6.00 billion still remains outstanding. Sources close to the Pakistan ministry of finance said that due to continued depreciation of Pak rupee against dollar, the amount of Pakistan’s IMF loan rose ... Read More »

Pakistan loan talks with IMF despite debt cancellation calls

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(CADTM-Pakistan) Pakistan is again in talks with IMF for fresh loan despite debt cancellation calls by the local civil society, says a statement by Bretton Woods Project. Talks between the IMF and Pakistan under post-program monitoring resumed in September. Despite confidence amongst Pakistan officials in their country’s capacity to repay its loans, the IMF fears the need for a second loan early next year. In 2011-12 Pakistan repaid $1.2 billion to the IMF for an initial $11.3 billion loan which was ... Read More »

Debt spiral and PPP Government

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(By Abdul Khaliq) Although successive governments in Pakistan have been acquiring foreign loans to meet their financial needs and all of them have their own share in pushing the nation towards a vicious and unending debt spiral, creating donor dependency by following (international financial institution (IFI)-led economic policies. However, the current PPP government has set new records of getting loans from foreign creditors and domestic banks. When the military dictator Gen Musharraf took over in October 1999, the country’s foreign ... Read More »