Recent Articles

Debt Justice

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 »

No to illegitimate debt:The only way out

By Abdul Khaliq/ There are spaces in international laws that can be invoked as legal justification to demand cancellation of debt. Pakistan is facing the worst-ever natural disaster of its history. About 20 million of its population is displaced due to recent huge devastation caused by the angry floods. Major infrastructure is totally destroyed in major parts of the country. The economic loss is in billion dollars. Foreign minister has put it as not less than $43 billion. This initial ... Read More »

High time for flood-hit Pakistan to refuse debt servicing

CADTM-Pakistan Press Conference/13 August, 2010/ Pakistan is facing the worst disaster of its history. About 20 million of its population is badly affected by the recent huge devastation caused by angry floods. Major infrastructure is totally destroyed in major parts of the country. Besides continuous human causalities, the economic loss is in billion dollars. The country has suffered a loss of about Rs250 billion only in the agricultural and livestock sectors and the flood recovery costs may run into billions ... Read More »

Pakistan must suspend debt repayments immediately

CADTM-International Appeal/ Almost a year ago in August 2008, Pakistan was at the brink of a default. Its foreign exchange reserves were hitting the rock bottom of $4 billion, depleting rapidly in the range of $250 to $330 million weekly, which were hardly sufficient to sustain a month’s imports. Pakistan’s sovereign debt and liabilities had crossed the $45 billion mark, the Pakistani rupee had depreciated to 23 per cent and the gap between balance of trade was widening to an ... Read More »