LAHORE: Government should form an independent and impartial parliamentary Debt Audit Commission, to critically examine the nature, purpose, terms and conditions of loans, covering the period till 1980. This was demanded by members of the civil society at a press briefing, jointly organized by the Campaign for the Abolition of illegitimate Debts (CADTM) Pakistan and World March of Women (WMW) Pakistan here Monday in connection with Global week of Action for the Cancellation of Debt.
CADTM-Pakistan Focal person Abdul Khaliq said that the proposed Debt Audit Commission should be consisting of representation of political parties and debt experts. With clear mandate, such commission must be backed by the Presidential decree and have powers to dig out all the foreign loans secured by successive governments.
He also said that the debt relief announced by G20 bilateral creditors in April 2020 was positive gesture but can't be termed as a step forward because it is not a cancellation, but mere a short-term postponement of payment. This only concerns bilateral debt and therefore excludes a large part of the debts, Pakistan owed to multilateral and private sector.
The on-going govt. efforts to seek debt relief for Pakistan is appreciable, but need to be more inclusive by demanding immediate cancellation of all principal, interest and other charges on bilateral and multilateral debts for at least next four years till June 2024 as first step.
A parliamentary debt Audit Commission is need of the hour to ascertain the legitimacy of the debts secured by successive govts. Abdul Khaliq further said this is high time to stop further borrowing from IFIs and focus our on-going efforts towards comprehensive debt relief for Pakistan.
We are really concerned about the recent loaning of $1.5 billion from IMF under Emergency Fund. Under this scenario, in next 20 months (Nov 2020 to June 2023) Pakistan would be paying back the due amount of around $ 27.8 billion to the creditors including major amount of $19.4 billion IMF, WB, ADB and China (CPEC loans), he added.
Bushra Khaliq, Member WMW International council said working classes have been forced to bear the burden of debt in the shape of multiple govts steps which includes hike in energy prices, inflation, joblessness and privatization of state services.
We understand IFIs and credit agencies tend to present rosy picture under the garb of the self-serving theories of "debt sustainability" of Pakistan. However, it is hard to understand how Pakistan would be able to pay back over $ 1 billion per month for the next two years?
Rabbiya Bajwa, Advocate said the proposed Debt Audit Commission should be consisting of representation of political parties and debt experts. With clear mandate, such commission must be backed by the Presidential decree and have powers to dig out all the foreign loans secured by successive govts and dictators.
Last, but not least, we feel public support is always crucial for championing the social justice causes. She offered CADTM technical support and sincere efforts to highlight the case of Debt Justice for Pakistan at international level.
Copyright Business Recorder, 2020