Recent Articles

Debt Justice

Argentina: Debt Default and Beyond!

(By Alan Cibils) Argentina’s recent experience can best be explained as a three-stage process. The first stage deals with Argentina’s neoliberal economic policies and the resulting unsustainable debt build-up. The second stage deals with the default and subsequent remarkable recovery. The final stage deals with the current economic problems, which began in 2007, and have been the subject of several recent scathing mainstream media articles. In what follows, each stage will be described concluding with some possible lessons. Stage 1—Neoliberal ... Read More »

$1.6b Chinese loan for metro train project in Lahore

LAHORE:  (Daily Dawn/4 March 2014) China has agreed to give $1.6 billion loan to Pakistan under Preferential Buyers` Credit (PBC) scheme for launching metro train project in Lahore. Dawn has learnt that the Chinese prime minister in a recent meeting with Punjab Chief Minister Shahbaz Sharif in China has committed to funding the project under the PBC scheme. The PBC is a Chinese GovernmentConcessional Loan that refers to the medium and long-term, low interest rate credit extended by the China Eximbank ... Read More »

Pakistan Debt Policy 2014

Recording the public debt-to-GDP ratio at 62.7 per cent by the end of fiscal year 2012-13, the `Debt Policy Statement 2013-14` released by the Ministry of Finance on Monday suggests the government to adopt an integrated approach for economic revival and debt reduction strategy. These measures will require some `difficult trade-offs` in the short-term, thus implementing the structural reforms that boost potential growth is a key to ensure debt sustainability, according to the statement.`Crossing of this threshold by 2.7pc was ... Read More »

$6.5 billion China loan for Pakistan N-plants

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

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

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

(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’

(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

(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

(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 »