IFIs Pakistan War on Terrorism

8/9/2019 IFIs Pakistan War on Terrorism

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IFIs, Pakistan & War

on TerrorismCADTM-Pakistan


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IFIs and Pakistan

The World Bank and AsianDevelopment Bank are among the

key multilateral donors of Pakistan.Ever since Pakistan joined the WB inJuly 1950, the institution hasapproved more than 17.27 billion

dollars in loans and credit.


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IFIs and Pakistan

Pakistan is the 4th- largest borrower of WBand 5th-largest recipient of US aid

Pakistan has received about $15.39 billionin total from ADB since 1996.

Pakistan has secured IMF commitment of$7.6 billion under a $9 billion bailout loan

after US, China and Saudi Arabia rebuffedPakistan appeals for immediate funding.


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IFIs and Pakistan

In the 1950s and 1960s about70 % of Pakistans foreign aidpackage was non-returnable

grants and only 30 % were loans.Of this, about 80 % were spenton development expenditures

and only 20 % were spent onnon-development purposes.


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IFIs and Pakistan

In the 1980s and 1990s thesituation reversed. About 80 % of

the foreign aid was being spenton armed forces and other non-development expenditures;In the year 2000 all of the foreignaid was spent on debt servicing.


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Debt & War on Terrorism

After 9/11, Pakistan received a record aid.Musharraf regime borrowed $15 billion.

The regime also availed the highest foreign

exchange inflow with over $ 25 billion inremittances and $10 billion from the US.

During 2003-04, the total external debt ofPakistan was $ 33.352 billion, which has

now gone up to $ 45 billion in June 2008.Domestic debt had soared to Rs.400 billionby the end of June 08.


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Pakistan is spending an estimatedamount of $ 4 billion on debt-servicingevery year.

But foreign debt is not coming downsubstantially as new loans are takenwhen the old loans are repaid.

In the fiscal year 2006, foreign debt of$3.1 billion was repaid, but new loansof $3.05 billion were taken.


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Pakistan is spending just 0.7 % and 2

% of the GDP on health andeducation, respectively.

The major share of the GDP is spenton military expenditures and debt-service.


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Debt as straight jacket

Foreign exchange reserves aredepleting rapidly in the range of $250to $330 million weekly.

Composition of our currentexpenditure reflects that half of it isconsumed by defense expenses and

interest payments.


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Debt &Corruption

The whole story of debts is littered withcorruption on the part of ruling elite.

Rs.655 million has been embezzled from

accounts of Earthquake Reconstructionand Rehabilitation Authority

Bank loans amounting to Rs.60 billion were

written off during Musharraf period.Similarly, successive govts also committedirregularities in Privatization proceeds


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What we want

A judicial inquiry into bank loans of Rs.60billion, written off during Musharraf period.

Through investigation in the entireprivatization process in Pakistan. Duringthe last 15 years 160 state enterpriseswere sold out and earned Rs. 395.241.

Cut in military expenditure and convert thesame into social and expenditure..


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What we want

Return of state assets plundered bypowerful elites of Pakistan and siphonedoff to different banks of Europe.Over the course of history the colonialBritish contracted a historical andecological debt towards people of South

AsiaSo people of S. Asia are victims of the

pillage by the British colonial power; we thepeople of south Asia are therefore entitledto reparation.


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Thanks

Documents

IFIs Pakistan War on Terrorism