KARACHI - Civil society activists and workers of labour unions, political and non-political parties Saturday announced to launch a country-wide campaign demanding to write off Pakistans 55 billion dollars external debts. They said all the resources of the country, which were being dedicated to debt payments, must be immediately spent on relief and rehabilitation of devastating floods victims in the country. The campaign is being launched by Workers Party, Labour Party, National Students Federation, Awami Jamhoori Forum and Alliance for Katchi Abadis, Pattan & Sungi (NGOs). The civil society activists said that devastating floods had resulted in unprecedented social, economic losses and they warned economy will collapse if unsustainable debt burden is not reduced. They pointed out that every year 40 per cent of federal budget is spent on debt servicing, which must be reduced if meaningful reconstruction of society and economy is to take place in coming years. Leaders and office-bearers of these parties and NGOs urged the elected representatives to confront IMF, World Bank, Asian Development Bank and demand debt write-off and refuse to implement neo-liberal policies that are destroying social fabric of the country. They said successive governments towed the line of international financial institutions (IFIs), which subjected the country to insidious form of financial imperialism. They urged the political and social circles to build united front against financial imperialism for the sake of 20 million flood affectees and all of working masses. In wake of $43 billion losses due to massive floods, economy and poverty-hit people are facing economic implosion. Pakistan owes $55 billion to external creditors, which is equivalent to almost 32 per cent of national GDP. In fiscal year 2009-10, government had spent up $3.4 billion in debt servicing which will rise in next few years with total external debt projected to be $74 billion by 2014-5. They insisted that post-flood Pakistan is eligible for cancellation of a substantial portion of its external debt. Debt crisis cannot be averted by a re-scheduling arrangement, as happened in early years of Musharrafs era. Debt write-off can ease fiscal burden, lead to greater flow of resources for flood relief, rehabilitation and guarantee continuity of political process. They were of the view that complete parliamentary consensus on this urgent issue is need of the hour.