Recent Articles

Debt Justice

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 »

Pakistan towards the debt trap!

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(By Khurram Hussain) IT`S a lesson the Mughals learned the hard way: if you cannot raise the revenues to pay for your government, your country won`t be yours to govern for very long. If you look at the raw numbers alone, the story can be quite alarming. Pakistan`s stock of public debt has doubled since this government came into power, but that number can be misleading. When thinking about debt it`s better to look at the proportions, rather than the ... Read More »

Pakistan and IMF

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(Dr Muhammad Yaqub) The IMF has been off-and-on involved with Pakistan for more than thirty years. At present, Pakistan has no operational arrangement with the IMF. However, it owes the IMF about $8 billion: $1.8 billion is due to be paid to the IMF in 2012, $3.9 billion in 2013 and $2.1 billion in 2014. Thus, in the absence of a new arrangement, Pakistan will have to repay a total net amount of $7.8 billion to the IMF in a ... Read More »

Pakistan does not need any foreign aid at all!

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Farah Zia: interview of S. Akbar Zaidi What is the relevance of the budget exercise in Pakistan’s context where defence and debt servicing take away a huge chunk? S. Akbar Zaidi: It does not matter what the distribution of expenditure is, a budget is an annual statement of the government’s revenues and expenditures and its policy objectives for the next financial year. Whether it is a democratic government or a military government, a socialist one or an Islamic one, a ... Read More »