Kerry-Lugar funding: Majority of the funds to go to K-P and FATA

Federal cabinet to approve summary for disbursement of American aid money under the Kerry-Lugar Act.

ISLAMABAD:

The federal cabinet will approve a summary when it meets on Wednesday for disbursement of American aid money under the Kerry-Lugar Act. The lion’s share of funds under this non-military assistance programme will go to those areas that are most severely affected by terrorism and insurgency.

After the cabinet’s endorsement, money will be released for projects identified by the US government after consultations with their Pakistani counterparts. So far, 39 such projects have been singled out and $1.5 billion committed.

The federal cabinet has been asked to formally approve this funding. A total of $7.7 billion have been committed by US government for 2010-2014 which would be exclusively spent on the socio-economic uplift of the country and on human resource development.

The cabinet will also be informed that the US government has agreed to divert $718 million to the government of Pakistan while an equivalent amount will be utilised through its aid-giving agency - USAID in Pakistan.

The Ministry of Economic Affairs Division has moved a summary in the cabinet seeking approval of the financing arrangements in light of long negotiations between the US and Pakistani governments. After giving his approval, Prime Minister Yousaf Raza Gilani had directed the Economic Affairs division to move a summary to the cabinet to seek its formal approval.

Finance Minister Dr Hafeez Sheikh was said to have held a series of consultative meetings with all relevant ministries and a broad framework was agreed upon for preparing a portfolio of the projects that are to be funded.

War-torn Fata and K-P will receive an allocation of $310 million. Education has been given second priority as a sum of $179 million has been allocated to it. Other heads include Economic opportunity $144 million, health $140 million, agriculture $81 million, energy $68 million and democracy and governance $98 million.

Published in The Express Tribune, March 9^th, 2011.