Houston, Texas, August 19, 2010: Pakistan Chamber of Commerce-USA (PCC-USA) the leading trade organization of Pakistani-American businessmen requests donor agencies to provide debt relief to Pakistan. Pakistan is an agrarian economy and depends largely on textile exports to earn foreign exchange. On the other hand over 6% of Pakistan’s GDP is spent on debt servicing.

The recent floods in Pakistan have devastated the standing crops of wheat and cotton. This heavy loss in cash producing crops is expected to affect not only the domestic economy but also create food shortages in the country. In this situation PCC-USA strongly support the proposal to relax sovereign loan repayment for next five years to reduce burden on the current account. This will help the government of Pakistan to divert budget resources for the reconstruction and rehabilitation of over 20million people affected by the floods. Read the rest of this entry »