Malakand still waits for promised funds

Govt, foreign donors disburse less than half the amount

ISLAMABAD:

The federal government and international donors have failed to provide Rs68.7 billion worth of aid they had promised for reconstructing Malakand division nearly seven years after the military operation was launched there to flush out militants, a top provincial official told a Senate panel on Friday.

Ahmad Hanif, the secretary for relief, rehabilitation and settlement of Khyber Pakhtunkhwa, said that of the Rs68 billion committed for rehabilitation and reconstruction of damaged properties in the division, only Rs28 billion had been received so far which has allowed only six projects to be completed while a number of projects remain unfinished.



Of the Rs17 billion the government had promised to provide, it has so far released only Rs2 billion. Foreign donors, meanwhile, have disbursed Rs26 billion – around half of the Rs52.5 billion they had committed.

Briefing the Senate’s Standing Committee on Finance and Revenue, Hanif said that Islamabad and the United Arab Emirates were the main donors who had yet to fulfil their aid promises.

“We will look into the matter,” was the curt response of finance ministry’s additional secretary, Akbar Sharifzada. Sharifzada. His reply was identical to the one he had given over the matter when it was raised last month.

Sharifzada said that the finance ministry would hold a meeting with Economic Affairs Division to get an update about commitments made by international donors including USA, Italy, China, UAE, Saudi Arabia and Germany.

In April 2009, the military had launched an aggressive operation in Malakand.



A subsequent joint Damage Needs Assessment (DNA) carried out by the World Bank and the Asian Development Bank at the time put rehabilitation and reconstruction costs at Rs86 billion, including Rs17.8 billion for the Federally Administrated Tribal Areas (FATA).

The UAE and Abu Dhabi Fund for Development had promised $252.2 million for reconstruction. But the fund has been withheld due to a dispute over $800 million payments by Etisalat, the provincial relief secretary said.

In 2006, Etisalat had bought 26% stakes in Pakistan Telecommunication Limited at a price of $2.6 billion but later one withheld roughly $800 million due to non-transfer of properties at the name of the PTCL.

Finance Minister Ishaq Dar had vowed to settle the years old dispute by September 2013 –a promise that has gone unfulfilled so far. Sharifzada, however, contested the claims and said that the provincial government was exaggerating figures. At this Hanif presented documents to back his claims.



After reviewing the arguments, the standing committee directed the finance ministry to resolve the issue within 15 days. Senate Chairman Mian Raza Rabbani, who has taken notice of the matter, has asked for a detailed report.

Published in The Express Tribune, March 12^th, 2016.