Business Recorder
LAHORE: Speakers at a forum expressed deep concern over Pakistan’s rapidly growing domestic and external debt burden and demanded that the government immediately suspend debt repayments for at least five years. They emphasised that the resources saved from debt servicing should instead be invested in education, healthcare, climate action, and support for working-class communities. The Pakistan Kissan Rabita Committee (PKRC) organised the said public forum on the theme “The Debt Crisis and the People’s Future” here on Friday. The session was chaired by Riffat Maqsood, General Secretary of PKRC. Speaking at the forum, Ayesha Ahmad, Coordinator of the WE Programme, stated that debt is not a recent phenomenon but has a long historical trajectory. She explained that institutions like the IMF and the World Bank provide loans to developing countries in the name of assistance, but the high interest rates and strict conditionalities attached to these loans further deepen the suffering of the people. These conditions often include privatisation of public institutions and increased taxation. She highlighted that every citizen in Pakistan is currently burdened with an average debt of approximately PKR 250,000, questioning why people should repay loans they neither took nor benefited from. Badr Alam, Executive Director of the Policy Research Institute for Equitable Development (PRIED), stated that Pakistan’s economic decisions are effectively dictated by the IMF. He pointed out that taxes are imposed on the public under IMF directives, yet the funds received never reach ordinary people. “These loans are neither taken by the people nor do they benefit them, yet it is the people who are forced to repay them,” he said. He further criticised the World Bank for financing projects based on its own priorities, many of which remain incomplete, fail to deliver results, or exist only on paper. Anfal Nadir, a climate researcher associated with PRIED, highlighted the global inequality embedded in the debt system. She stated that poor countries end up paying more than they borrow, effectively generating profits for wealthy nations. Between 2022 and 2024, developing countries paid over USD 741 billion to richer countries in debt servicing—far exceeding what they had borrowed. She stressed that poorer nations are trapped in a vicious cycle of taking new loans to repay old ones. In countries like Pakistan, where 25 million children are out of school and 18 million suffer from inadequate nutrition, the largest share of national resources is still allocated to debt repayment. Farooq Tariq, President of the Haqooq-e-Khalq Party, welcomed the international guests from the Philippines and emphasised that struggles around debt and climate justice are taking place across the world. He strongly criticised rising inflation in Pakistan and called on the government to reduce fuel and gas prices, especially in light of regional developments. Copyright Business Recorder, 2026
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