Drop Pakistan's Debt
- Author: Oxfam
- Copyright: Oxfam
- Date: 6 October 2010
The UN says the impact of the Pakistan floods is worse than the tsunami, the 2005 Pakistan earthquake and the Haiti earthquake. Over 20 million people have been affected so far. The humanitarian crisis is building and aid organizations, like Oxfam, are providing urgently needed help to the survivors.
Now the country needs to work to start recovery from this disaster. But Pakistan faces a huge debt burden. The country pays 44% of all taxes it collects repaying its debts, and hands over around 3 times more on debt than it spends on healthcare every year.
Money that would otherwise be swallowed by debt payment needs to be used for reconstruction and poverty reduction through transparent and accountable systems that ensure the money helps those that need it most.
Pakistan's huge debt burden will slow recovery and add to the misery of the poorest people.