Pakistan should refuse to pay foreign aid: Labour Relief Campaign

satyam

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Three prominent progressive organisations have urged the Pakistan Peoples Party-led government to refuse paying all foreign debt worth $54 billion as well as annual instalments of $3 billion, and divert the entire amount to relief and rehabilitation projects for the 20 million flood victims in the country.

http://www.dailytimes.com.pk/default.asp?page=2010/08/14/story_14-8-2010_pg13_3


India should collect as much loan from different agency as possible and not pay it. We must do an equal-equal with Pakistan. After all they have been doing us as much as possible.
 

Agantrope

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Even pig eats ***, we cant go in comptetion with the pig, oops fhig :D
 

pankaj nema

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When a country decides not to repay its debts,it is declared a DEFAULTER. International trade is done on credit.
So pakistan will not be able to import anything from the world community.Because defaulters are not sold anything
Pakistan imports a lot more than it exports.Pakistani imports imported oil, food and fertiliser, capital goods and defence equipment

So pakistani economy will come to a grinding halt.
A nation which imports morethan it exports has to take loans to pay its bills.When you default on your current
payment obligations, you cant get a new loan.

So it is a bad idea.All pakistan can ask for is rescheduling ie postponing its payments .
A NATION as long as it exists has to pay its debts. Only when a country is broken up,its debt is forgotten by its creditors.
 

satyam

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^^^^^^

USA wrote off loans of Pak during 2002. They don't have to pay those.
 

Yusuf

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The writer of the article could not be more stupid. You cannot default on your payments. Its called sovereign default. Look what happened to Dubai when it was close to defaulting. In fact Pakistan too was on the verge of default when it signed a deal with IMF to save it from default.
India pawned its gold in 1991 to save itself from default. You cannot default on your payments. It screws your economy. Your credit rating goes, your currency goes.
 
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17 billion in IMF loans will evaporate if this is pursued and not to mention no foreign investment will ever be made in pakistan for decades.
 

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