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Pakistan should refuse to pay foreign aid: Labour Relief Campaign

Guys, that won't be a good idea. We've experienced first hand how bound a country can get with significant external debts. $54 billion is huge amount. Despite what the UN clauses say in terms of temporary possibility of not to pay, that much longer you'd be forced to comply to the donors' whims and fancies.

The more delays are there in repaying external debt, the less autonomy you'll have. It is therefore best to pay off the debts ASAP.
 
Not a very far fetched idea. Somewhat akin to declaring bankruptsy in the US. The debts get written off, but then try taking a loan in next 10 years. Its a devil's alternative.
 
Not a very far fetched idea. Somewhat akin to declaring bankruptsy in the US. The debts get written off, but then try taking a loan in next 10 years. Its a devil's alternative.

Bankruptcy of a individual person is not same as bankruptcy of a country. Not everyone would know about individual bankruptcy but a country going bankrupt that would be a sensation, would last in public domain for a long time. Country could say goodbye to FDI for at least 50 years.
 
I think we should start a separate FORUM called 'Lets bash Zardari, democracy and PPP' where your 'energies' can be better focused and channeled.
I think that's a good idea.

Given all three components have shown their true worth to the people of Pakistan over the past two years, I'm sure quite a few of us would be happy to show our disdain and pure disgust for 'jamhooriat', Ghaddari style :pop:

Back to the topic, stupid idea.
 
I think this is a far more practicle solution :

Flooded out —Mujahid Eshai

We must thank the IMF for its immense 'contribution' and tell them to take a hike. Pakistan's priority today, more than ever, is to reconstruct and rehabilitate its people

Boots, shoes, whatever. Who cares? There are enough gigantic issues facing the country because of the seemingly unending deluge sweeping away everything that came in its way. The tales of woe notwithstanding, one has to earnestly start thinking about the rehabilitation and reconstruction of the affected. Local resources being non-existent, help in terms of money being nothing more than a trickle from donor agencies and countries worldwide because of the global recession, speculative estimates in terms of damage, without actual verification becoming a farce, the matter needs a team of leaders who can stand up and be counted upon. Do we have them? The answer, unfortunately, is in the negative. But at this moment, one’s sympathies are with the prime minister who has to deal with all of this and more. Can he do it? Maybe, if he finally gathers a team that has the potential to deliver. The solutions will be tough and the old ways will have to be given up. Do our leaders have the capacity to move systematically seems to be the million dollar question. Only deeds will prove what they are capable of and what not.

In this time of immense crisis that has given rise to gigantic short- and long-term problems, certain matters need to be categorically and clearly stated. The first is that we must thank the IMF for its immense ‘contribution’ and tell them to take a hike. We should tell them and other such merchants of debt that they should forget what they have given us for a very long time, as Pakistan’s priority today, more than ever, is to reconstruct and rehabilitate its people. Those who threaten us are welcome to do so but we have finally been made to understand our responsibilities and where they lie. They only lie with the people and economy of this country, as it has to be helped back onto its feet, preferably through self-help and proven selfless friends.

This country cannot do without a system of union and district councils, suitably empowered and monitored, as envisaged in the devolution of power programme given by the last regime. The members of parliament cannot deliver to the people what is required in such circumstances. At such times, the affected want their local leaders to be with them and attending to their woes. These people are part of the community and are also affected, whilst the MNAs and MPAs mind their own matters in the federal and provincial capitals. Whether it dilutes the perceived authority of the MNAs and MPAs or not, the local governments must come back at the earliest.

Because of our past reputation, there is hardly any ‘friend’ of Pakistan prepared to trust the government with hard cash. Most friends are looking for an agency that can be entrusted with funds to be genuinely spent in putting the people out of their misery. All government agencies are being bypassed in the process. Credible practices and behaviour need time to be established and transparency, honesty and good practices need to be seen to be followed. This has to be an opportunity for our government and leaders to turn over a new leaf.

The political and religious parties should stop the business of one-upmanship and mudslinging, and gather round with the federal government to chalk out plans about how to get back on track. At this time we need unity in thought and action. Let us not look at the armed forces as the messiah, as their hands are already full dealing with the war on terror even though they are doing more than what should have been expected of them in saving people, providing food, medicine and shelter to the dislocated. Where are the civil administration and its machinery? If the democratic forces in the country do not get together with the government at this critical time, then it will be obvious to all and sundry — if such evidence was still required — that they are incapable of governing and attending to the problems of the people.

Last, but not least, the government should immediately set up three widely constituted committees, one for strategising and planning relief efforts, second to attend to rehabilitation issues and a third for the reconstruction of swept away infrastructure. Enough experts with all kinds of skills are available within the country. Those with a proven record of achievement, regardless of colour, creed or political affiliation, should be taken on board. They shall have to determine ‘out-of-the-box’ solutions as demanded by the situation. And, finally, the government needs to immediately start working on an emergency budget, as the one announced earlier is no longer valid. The budget must incorporate facts that are staring us in the face: loss of infrastructure, time required to rehabilitate fertiliser factories, power plants and gas fields currently inundated, absolute decrease in tax revenues, shortages of various revenue earning and food crops, agricultural inputs, and providing people with food that they will not be able to afford at the extremely high prices it is likely to be sold due to actual, perceived and man-made shortages.

The situation today is such that if the government, political and religious leaders and the wealthy and well-to-do of this country do not come to the rescue of its ordinary people spread in all four provinces, it is extremely likely that a situation of such anarchy, looting and mayhem may be witnessed, the likes of which have only been read about in the annals of history. If we again go to the merchants of debt to provide us succour, we will be making a regrettable mistake. So, let us vow to stand up together and do for our people and our country what is expected of any civilised nation in this world. Let us show to the world that we are capable of honourably and successfully coming out of this natural disaster of immense proportions with our own efforts. Anyone wanting to assist, with no strings attached, will be welcomed.

The writer is a fellow and former president of the Institute of Chartered Accountants of Pakistan. He also served as a member of the Federal Ad Hoc Public Accounts Committee
 
Before firing at me...read the full post:

Atleast once Pakistan should go bankrupt...only then the stupid politicians will wake up and do something so that the nation again marches towards economic prosperity.

p.s.: It was the same with India..we went bankrupt in 1991 and had to pawn our Gold..it was only then two gentlemen by the name of Manmohan Singh and Narasimha Rao took over and the rest is history.
 
If anything, Pakistan should ask those it owes money to to hold off on scheduled repayments with 0% interest accrual during this time period. Focus the monies towards rehabilitation and give the country some fiscal breathing space. Once things are back on track, begin paying debt back.

This is something that international donors can do given the magnitude of this situation. This is not a case of Pakistan defaulting, rather being impacted by a once in a century type of natural disaster, and until and unless the behaviour of the donors is akin to that of the Merchant of Venice, this type of a financial arrangement is a possibility and one that the GoP should push for, while at the same time letting foreign NGOs and private aid companies do their assistance work without putting any impediments and letting the Army coordinate the relief work. This will ensure that the corruption at the governmental or lower level does not get in the way of rehabilitation.
 
Before firing at me...read the full post:

Atleast once Pakistan should go bankrupt...only then the stupid politicians will wake up and do something so that the nation again marches towards economic prosperity.

p.s.: It was the same with India..we went bankrupt in 1991 and had to pawn our Gold..it was only then two gentlemen by the name of Manmohan Singh and Narasimha Rao took over and the rest is history.

Actually India didn't go bankrupt. It had a balance of payment crisis, and IMF demanded reforms for loan. Also, Rajiv Gandhi wanted to do reforms in 1988, but he was killed the next year. But, it took PV to take a brave stance to navigate the reform process while shielding MMS from politics.

But Pakistan already is more open than India is presently. It;s only their politicians that are screwing their economy. They need an economist who is prudent with policies to run the government like ours.Not 10% guy. They need to elect right politicians.
 
Pakistan must continue to pay all its financial obligations and at the same time negotiate for better terms. Stopping payments or going bankrupt will never be an option for Pakistan.
 
The more delays are there in repaying external debt, the less autonomy you'll have. It is therefore best to pay off the debts ASAP.
In the past, countries would be colonized by military force. Today, its through economic force. IMF/World Banks do nothing but buy up countries.
 
Thats not a bad idea infact a great idea. This will just open a pandoras box. Other African countries will follow suit.
I am not sure how G7 will react to it.. but there will be a lots of support for Pakistan.
 
In the past, countries would be colonized by military force. Today, its through economic force. IMF/World Banks do nothing but buy up countries.

Exactly and Pakistan was infiltrated and sold off a long time ago. No use in trying to cry now when it happened right in front of people's blank faces. ****n politicians and generals who are at the end of their rank and start acting criminal.
 
Thats not a bad idea infact a great idea. This will just open a pandoras box. Other African countries will follow suit.
I am not sure how G7 will react to it.. but there will be a lots of support for Pakistan.

aap jaise dost ho to dushmanoki kaha zarurat.

Pakistan can refuse to pay money but do you think that they will even conceder to help again.can Pak survive without foreign economic assistant?
 
If anything, Pakistan should ask those it owes money to to hold off on scheduled repayments with 0% interest accrual during this time period. Focus the monies towards rehabilitation and give the country some fiscal breathing space. Once things are back on track, begin paying debt back.

This is something that international donors can do given the magnitude of this situation. This is not a case of Pakistan defaulting, rather being impacted by a once in a century type of natural disaster, and until and unless the behaviour of the donors is akin to that of the Merchant of Venice, this type of a financial arrangement is a possibility and one that the GoP should push for, while at the same time letting foreign NGOs and private aid companies do their assistance work without putting any impediments and letting the Army coordinate the relief work. This will ensure that the corruption at the governmental or lower level does not get in the way of rehabilitation.

I second that - debt restructuring can be pursued with the larger lenders such as the IMF, WB, ADB, IDB and Western donors. However, it should IMO be treated as 'aid/development loans', and the GoP should provide detailed feasibility studies and plans on the reconstruction projects it plans to fund with the money saved, just as it would were these lending institutions providing fresh funds for development schemes.
 
Debt restructuring aside, the Paris Club has more than enough reasons to waive off a lot of our debt. It should be a welcome move if the Paris Club waives off a large portion of the long term loans.

The PPP are never too far from theft, it's what they are about - just imagine taking loans and then defauting, if this this not theft, then what is it?

That such an idea comes from otherwise responsible people goes ot show the intellectual and moral bankruptcy of such people and ideas.

Instead of coming up with ideas to promote growth, to create greater economic and therefore political liberty, these "muft khor" have come up with yet another way to legitimize theft.

Crisis of payment in Sept 2007 - Jan 2008. Cough, cough !!

muse I'm sorry but combined with your second post, I'll give you a trolling award as well. Next time it's a discussion on improving wind turbines or neurosurgery, I'll myself introduce the PPP-is-bad-look-at-Mr-10% statements.
 

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