Pakistan Floods ~ Disaster Of Epic Proportions Raises The Spectre Of Systemic Collapse


3.5 millon children at risk , economy and exports to contract as losses could exceed $10bn

Pakistan seeks restructuring of $10bn IMF loan as the United Nations urges help and raises $500 million

Given the initial reports about crop and other losses,

it now appears that Pakistan’s economy may contract in the next twelve months

and total output, property and other losses

would exceed $10 billion

and Pakistan could borrow as much as $8bn in new loans in the next six months.

This would be another mistake.

Pakistan’s lenders must start considering debt cancellation as a form of assistance

because it might be a more effective and sustainable solution.

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Sun Aug 22 , 2010