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 never fully disbursed.

The Committee for the Abolition of Third World Debt in Pakistan (CADTM) has led civil society demands for the cancellation of Pakistan’s IFI debt. Its 2011 book “IFIs & Debt Politics – Pleading Pakistan Case” points to the 2010 floods which have increased the urgency of reconstruction efforts. So far, the government has resisted these pressures