The whole nation of Pakistan continues to reel from devastating impacts of the unprecedented disaster that hit the country over a month ago.
The responses thus far from the international community are far from adequate and, in the case of the IMF, World Bank and ADB, even deplorable. These institutions have chosen to offer more loans rather than cancel the debts they claim from Pakistan. Together, loans from these institutions and other multilateral financial institutions constitute more than 50% of Pakistan’s total outstanding external debts. As of 2009 outstanding credits from the IMF are US$5.1B, outstanding loans from the World Bank amount to US$11.5B and from the ADB it is US$9B. Bilateral loans comprise more than 30%. The major bilateral lenders are Japan (US$6.67B), France (US$B2.17B), Germany (US$1.82B), USA (US$1.51), and China (US$1.88B). Total external debt of Pakistan as of 2009 is US$50.7B. (for more information see Annexes)
We call on our members and other peoples’ organizations, movements and citizens groups in the South and throughout the world to step up our efforts to press for Debt Cancellation for the people of Pakistan.
In addition, in the face of this climate-related disaster, we must urge those responsible for the climate crisis to pay reparations for its impacts on the people of Pakistan and other South countries. Many of the lenders to Pakistan are among those principally responsible for the historic and continuing excessive emission of greenhouse gases and massive deforestation thus the dangerous levels of GHG concentrations in the atmosphere causing the climate chaos. They must not only cancel the debts they claim from Pakistan, these institutions and countries must provide the financial reparations necessary for Pakistan to deal with the impacts of the floods and build resilience for future climate-related disasters.
We urge you to take the following actions:
- Release press statements and letters to the editor to local and international media to disseminate our calls for debt cancellation and climate reparations.
- Promote calls through the internet via appropriate listserves, instant messaging & social networking, tools like Facebook, Twitter, Skype, Friendster, Yahoo Messenger and dissemination of stickers, posters, short statements
- Use a common logo for posters, profile pictures, stickers, postcards and other materials. The logo is on this paper and attached as a separate file.
- Send a barrage of telecommunications messages (telephone, mobile phone, fax and e-mail) to the headquarters of the World Bank, IMF, ADB and/or to their offices in Pakistan and/or in your countries. For greater impact, let us do these together during the week of September 20 to 24. (Pls see Annex for Telephone & Fax #s and Email addresses). Send similar messages to embassies and finance ministries of bilateral lenders with priority to Japan, France, Germany, USA and China.
- Sign up to petitions calling for debt cancellation for Pakistan such as the Avaaz online petition which you can find on: http://www.avaaz.org/en/pakistan_cancel_the_debt/
- Hold mobilizations in front of the offices of the IMF, World Bank, ADB in our respective countries.
ANNEX 1 PAKISTAN DEBT PROFILE (thanks to Eurodad)
Pakistan debt figures
Source: IMF Country Report No. 10/158, June 2010
PPG= Public and publicly guaranteed debt
Public debt defined as excluding obligations to the IMF except budget financing, military debt, commercial loans & short-term debt
|PUBLIC DEBT (incldg all obligations to the IMF), % of GDP||59.3||58.8||60.9||61.5|
|Public debt, % of GDP||58.4||55.6||56.4||55.3|
|of which external government debt||26.7||26.2||25.6||25.9|
|of which domestic government debt||31.8||29.4||30.8||29.4|
|EXTERNAL (US$ millions)||44,468||50,759||55,774||64,050|
|External debt, % of GDP||27||30.5||31.2||33.5|
|External debt % of exports (including private debt)||180.7||185.2||219.4||236.8||268.1|
|External PPG debt, % of exports||167.6||182||185.3|
|External PPG debt service, % of exports||15.1||21.2||21.2||22.8|
|Public sector debt to revenue ratio||357.1||392.8||388||377.8||358.1|
|Real GDP growth||5.6||2||2||3||4|
|GDP (US$ millions)||164,557||166,515||178,922||191,062|
|Gross external financing needs (US$ billions)||8.2||15.2||12.3||9.7||9.8|
|BY CREDITOR, in US$ Billions|
|Mulitlateral creditor (only PPG medium term debt)||21.5||3||24.6||26|
|of which ADB||9.4||9||10||11.2|
|of which WB||11.5||12||12.6||13|
|of which other multilateral creditors||0.7||1.9||1.9||1.9|
|of which Paris Club (see further break-down)||13.9||14||13.9||13.7|
|of which non-Paris Club||1.2||1.9||3.4||6.7|
|of which Euro bonds||2.7||2.2||1.5||1.5|
|of which commercial commercial banks and others||0.7||0.4||0||0|
Pakistan Debt Lender Breakdown 31.03.2010
PPG medium and long term external debt disbursed and outstanding 31.03.2010
Source: “PAKISTAN ECONOMIC SURVEY 2009-10” Pakistan Ministry of Finance
|Public and Publicly Guaranteed Debt(Excluding IMF loans)||41,640|
|NORD. DEV. FUND||15|
|NORD. I. BANK||7|
|a) Paris Club Countries||14,017|
|b) Non Paris Club Countries||2,555|
|UNITED ARAB EMIRATES||121|
|iv) COMMERCIAL BANKS||275|
ANNEX 2 Updates on New Loans as of September 2010
- World Bank raised its flood-related support in the current fiscal year to US$1 billion from US$900 million.
- ADB has approved a $3 million grant from the Asia Pacific Disaster Response Fund for urgent relief and rehabilitation needs.
- ADB will also establish a trust fund to provide a vehicle for other development partners to channel their contributions for reconstruction support.
- ADB‘s contribution to the recovery is expected to be at least $2 billion in the next two years.
- The International Monetary Fund (IMF), announced that will provide around US$450 million in immediate emergency financing, bringing total IMF disbursements (including emergency assistance) to $2.2 billion in the second half of 2010
- The Japan International Cooperation Agency said it planned to provide emergency grant assistance worth as much as US$3 million to the stricken country.
- USAID Developments
- The fifteenth and sixteenth USAID/OFDA relief flights arrived carrying a total of 85,850 blankets and 46,800 10-liter water containers for household-level transport and storage of safe drinking water sufficient for approximately 140,000 people.
- On September 7, USAID/OFDA committed $500,000 to OCHA to support humanitarian coordination and information management activities in flood-affected areas. In addition, USAID/OFDA committed more than $5.2 million to the International Organization for Migration (IOM) for health, logistics and relief commodities, and water, sanitation, and hygiene (WASH) activities. USAID/OFDA also committed nearly $2.5 million to an unnamed non-governmental organization (NGO) for economic recovery and market systems, logistics and relief commodities, shelter, and WASH activities.
- On September 3, the US President signed a Presidential Determination authorizing the use of up to $33 million from the U.S. Emergency Refugee and Migration Assistance Fund to meet unexpected and urgent refugee and migration needs associated with flooding in Pakistan. The U.S. Department of State’s Bureau of Population, Refugees, and Migration (State/PRM) plans to use the funds to increase support to the Office of the U.N. High Commissioner for Refugees (UNHCR) and the International Committee of the Red Cross (ICRC).
- The U.S. State Department has provided other civilian and military in-kind assistance in the form of halal meals, pre-fabricated steel bridges and other infrastructure support, as well as air support to and within Pakistan to transport goods and rescue people, valued at approximately $28 million.
ANNEX 3 JSAPMDD Press Release
Debt Cancellation And Climate Reparations Not New Loans For Pakistan!
September 10, 2010
Recent moves of the IMF, the World Bank and the Asian Development Bank provide loans to Pakistan in response to the unprecedented disaster have been drawing negative reactions from civil society groups from all over the world.
Jubilee South –Asia Pacific Movement on Debt and Development (JSAPMDD), a network of peoples’ organizations and movements from more than 10 countries in the region, has expressed its condemnation of the offer of loans. “The loans may temporarily provide finance for Pakistan’s immediate needs but these will drive the South Asian nation deeper into debt and render it even more vulnerable to policy impositions by these institutions,” stated the movement’s coordinator Lidy Nacpil.
Pakistan is spending several billion dollars on debt service annually. Loans from the IMF, World Bank and ADB together amount to more than US$26 billion and comprise a little over 50% of the country’s outstanding external debts. “If they are really want to help, they should immediately cancel the debts claimed from Pakistan,” adds Ms. Nacpil.
JSAPMDD’s concerns are similar to those articulated by other international civil society groups such as the Jubilee Debt Campaign in the UK, the Jubilee USA Network, EURODAD and Oxfam who have been pressing for immediate debt cancellation and debt relief for Pakistan since the disaster hit the country.
According the JSAPMDD, “The offer of loans is even more reprehensible given that these institutions and many of Pakistan’s bilateral creditors are among those primarily responsible for the climate crisis that has led to the unprecedented floods in Pakistan. The World Bank and the Asian Development Bank spend billions of dollars on fossil fuel projects and dirty energy. Japan, France, Germany and the USA, four of the biggest bilateral lenders to Pakistan, are among those responsible for historical and continuing excessive emissions of greenhouse gases and thus the dangerously high concentration of these gases in the atmosphere. It is outrageous to offer loans when justice demands nothing less that the cancellation of debts and climate reparations.”
The disaster, as of latest count, has already claimed more than 1,710 lives. Twenty million people were left homeless, in urgent need of food and other basic necessities and now face the threat of deadly water-borne diseases. Pakistan officials claim that the floods are the worst in 35 years and will affect the production of rice, sugarcane and corn by about 10 to 15 percent.
ANNEX 4 Important Telephone, Fax and Emails
International Monetary Fund – IMF:
- Mohammed Daïri (Director Alternate for Pakistan)
- External Relations Department (Washington, DC, USA)
Fax: 00 1 202 6236278; 00 1 202-623-6772
- Robert B. Zoellick (President)
The World Bank
1818 H Street, NW
Washington, DC 20433 USA
Tel: 00 1 202 473 1000
Fax: 00 1 202 477 6391
- Shahzad Sharjeel (Media Contact-Pakistan)
- Mariam Altaf (Public Information Center-Pakistan)
Asian Development Bank – ADB:
- Rune Stroem (Country Director, Pakistan Resident Mission)
- Chaiyuth Sudthitanakorn (Executive Director)
- Govinda Bahadur Thapa (Alternate Executive Director)
ADB Headquarters, Manila, Philippines
Tel: 00 63 2 632 6081
How to send e-mail: Go to this link – http://www.adb.org/bod/Contacts/default.asp?cd=PAK