“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”
- John Adams
- Pakistan Forced To Take Loan From World Bank (Because Of Slow Pace Of Aid Forces)
- Pakistan Floods: Cholera Spreads, Water Levels Continue To Rise, 20 Million Made Homeless In Worst Natural Disaster In Pakistan’s History
- Russia and Pakistan: ‘Blocked’ jetstream to blame for freak weather, say scientists
Once your fate depends on the elite mafia you are doomed.
- Max Keiser on Greece: ‘The IMF is a Financial Mafia’:
The International Monetary Fund is that last thing you need. You will lose your sovereignty. It exercises terrorism. You will be raped in such a way, that it will be the worst pain you have ever felt.
The flooding crisis has weakened an economy already struggling to cope with its heavy financial burden. Omar Waraich reports from Islamabad
Flood survivors in Punjab province jostling for emergency relief yesterday as about 150,000 people were forced to move to higher ground when the swollen Indus River submerged more villages (AP)
Pakistan’s already creaky economy has been pushed to the verge of ruin by the devastating floods of the past month.
With foreign aid only now beginning to trickle in, the impoverished country has been forced to take out further loans while pleading for outstanding ones to be restructured.
Already burdened by heavy debt, the country’s economy has suffered a major setback. Funds will have to be poured into reconstruction efforts while many sectors of the economy, especially agriculture, will suffer losses for up to several months, if not years. So far, the floods have covered a fifth of the country, cost at least 1,600 lives, displaced 4.6 million people, destroyed roads, bridges and schools, damaged power stations and dams, and swamped millions of acres of agricultural land.
About 150,000 Pakistanis were forced to move to higher ground yesterday as water from a freshly swollen Indus River submerged dozens more towns and villages in the south. Officials expect the floods to recede across the country in the next few days as the last river torrents empty into the Arabian Sea. Survivors may find little left when they return home. Already, 600,000 people are in relief camps set up in Sindh during the past month. The floods have affected about one-fifth of Pakistan’s territory; at least six million people have been made homeless, and 20 million affected overall.
A top-level delegation from Pakistan’s Finance Ministry will travel to Washington this week to ask the International Monetary Fund to ease the restrictions imposed on its $11.3bn (£7.3bn) support package. Before the floods, Pakistan was struggling to meet the fund’s requirements. Meeting those conditions now will be impossible.
Some officials estimate that the cost of rebuilding infrastructure could be $15bn, money that Islamabad simply doesn’t have. As of July, Pakistan had a debt of $55.5bn. That figure will jump to $73bn in 2015-16, as debts that were rescheduled after 9/11, in exchange for Pakistan’s co-operation in the “war on terror”, will come back into play.
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Tags: Debt, Economy, Environment, Flood, Global News, Government, IMF, Pakistan, Politics, World Bank