Recent Articles

Debt Justice

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

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

(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

(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!

(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

(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!

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 »

Debt and Dictators

(By Farooq Sulehria) A democratic approach would have been to fully respect the PPP’s right to complete its constitutionally mandated tenure and siding with the PPP every time it is subjected to subversive campaigns; and at the same time, criticising the PPP government for its gross inefficiencies albeit without reducing it to the person of President Zardari. Focus on persons has occluded debate on the structural constraints holding Pakistan back. For instance, the foreign debt has become the biggest hurdle ... Read More »

Pakistan debt audit must to dig out odious loans

Debt continues to weigh down Pakistan, preventing it from being able to break out the endless cycle of poverty and injustice. Although Pakistan has ended SBA agreement With IMF, yet it is not out of woods. Debt scenario is getting bad to worse. The public debt has soared by a whopping Rs.120 billion just between July 1, 2011 to-date in the wake of depreciation of Pak currency against US $. The country’s public debt has risen to Rs. 11 trillion, ... Read More »

An overview of campaign for debt cancellation in Pakistan

(Syed Abdul Khaliq) Pakistan- a country of about 180 million people is ruled, most of the time, by the IFIs-backed military dictators who directly governed the country for 32 years (during its 63 years life) with full support of the imperialist west. These dictators, during their respective tenures, not only undermined the democratic institutions in the country but also incurred heavy debt to Pakistan, with almost 80% owed to IFIs, including IMF, World Bank and Asian Development Bank. The ... Read More »

Bury the Begging Bowl Please! -An open letter Nwaz Sharif

(By Abdul Khaliq) Dear Mr.Shahbaz Sharif! A few days back you announced that “the nation should refuse to accept foreign aid as it had been proved to be a “poison” for the national sovereignty and its integrity. We have mortgaged our sovereignty by accepting foreign aid; therefore the nation had to break the “begging bowl” to live as an independent nation”. Your words sound music to my ears, and I am much happy with your “radical position”. I respect your ... Read More »