2 September 2010

Hundreds of protesters have taken to the streets of Lahore calling for an international response to catastrophic recent flooding that is based around grants rather than the creation of new debt. The report that follows is from CADTM-Pakistan:

"Over 500 participated in the anti-debt rally, mainly women and youth. The rally started from GPO Chowk and terminated at Charring Cross, The Mall.  The participants were holding banners and placards inscribed with slogans against IFIs. The main banner was read as “No to Foreign Debts”.

Throughout the route participants made full- throat slogans in favor of demand to cancel Pakistan’s foreign debtAt the end of the rally speakers including Farooq Tariq, Abdul Khaliq, Aasim Sajjad, Naeem Shakar, Bushra Khaliq and other campaign leaders addressed the participants. They said the recent floods had caused a loss of $43billion to the country’s economy. They said under the prevailing circumstances the government had lost the capacity to effectively launch the relief and rehabilitation work in the flood-hit areas, making it unfeasible for it to return the loans to International Financial Institutions (IFIs).

They said the government had to repay loans amounting to $55 billion to IFIs, and the amount would increase to $74 billion with markup within next few years. “Pakistan has paid $3.04 billion during fiscal year 2009-10 which is 33 percent of its entire Gross Domestic Production (GDP). The speakers made it clear that the campaign will not end. They demanded that government should not accept further loans and say no to the repayments of the current debts. They criticized the PPP government for lacking guts to stand up and take a radical position. It is pity that Pakistan government is busy assuring the IMF that they will not go for request of debt cancellation, they added."

Original article

Campaigners unite over the social injustice that has been highlighted by the flooding in Pakistan and call for a reaction which not only reduces more immediate suffering, but reduces its enormous $49 billion debt that will continue to have massive long term consequences.

The terrible flooding which has affected tens of millions of people in Pakistan is even more potent given the fact that 60% of the population is already living below the poverty line. The international community of debt campaigners are fighting hard to see debt relief as well as vital aid donations to ensure a more stable future.

Due to irresponsible lending Pakistan pays a staggering $3 billion annually in debt repayments and it is vital that flood responses don't add additional economic burdens in the future.

Follow this link to Jubilee Debt Campaign to Take action and tell Andrew Mitchell and George Osborne to drop the debt.

Click here to link to the Guardian's Pakistan debt coverage.

(Photo: Qasim Berech/Oxfam)