ISLAMABAD:
Washington took its first steps towards normalisation of relations with Pakistan, reaching out to Finance Minister Dr Abdul Hafeez Shaikh late on Thursday to assure Islamabad that recent developments would not affect its economic support to the country.
The US also partly agreed to Pakistan’s demands of financing mega energy projects under the Kerry-Lugar civilian assistance package while insisting on sustaining the allocation of funds to small-scale projects, mainly to accommodate the US Congress ‘wish list’.
At the State Department, Deputy Spokesperson Mark Toner told reporters that Deputy Secretary of State Thomas Nides telephoned the Pakistani finance minister earlier on Thursday and discussed with him the importance of continuing cooperation on the US-Pakistan civilian assistance programme.
A finance ministry official confirmed that both the countries would shortly review the status of all ongoing projects under the Kerry-Lugar package.
A meeting between the finance minister and the US Ambassador to Pakistan Cameron Munter would be held soon, the official added.
Pakistan has been pushing the US to allocate a larger chunk of aid resources for bigger projects in order to make better use of the funds, in addition to making money available for early completion of the projects.
The United States Agency for International Development (Usaid) has a portfolio of about $2 billion, of which $1 billion is for 32 Kerry-Lugar funded projects.
Officials privy to the discussion said that the US deputy secretary of state told the finance minister that it would not be possible for Washington to only finance mega projects.
The US wanted its footprints in sectors that it deemed fit to carry forward its objectives, the officials observed.
Since the Kerry-Lugar Act is earmarked, members of congress have a great say in the allocation of resources to projects in various sectors.
Consequently, in order to win support for appropriations, the administration has to take into account the areas of interest of members on various committees of the Congress.
The officials said in the upcoming meeting between the finance minister and the US envoy, both countries would also look into the option of further reducing the number of projects.
According to the Pakistani authorities the US has so far released only $374 million, under the Kerry-Lugar Act. But Toner noted that since the passage of the Kerry-Lugar bill, the US had disbursed about $2 billion in civilian assistance, which included over $550 million in emergency humanitarian assistance during the floods.
“Deputy Secretary Nides reiterated to Minister Shaikh that the United States remains committed to working in partnership with Pakistan to fuel economic growth and to improve its energy, education and health sectors,” the spokesman said.
“We do have a slowdown on the security side, but our civilian assistance remains undeterred,” he said.
“The crux of the conversation was about the continuing flow of civilian assistance and how best to ensure that it meets Pakistan’s needs.”
The US previously signed an agreement to spend $1,025 million through government channels and the remaining amount of $475 million through its own system for the first year of the Kerry-Lugar Act.
Published in The Express Tribune, July 16th, 2011.
COMMENTS (12)
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And in exchange what did Pakistan assured for? Hope it's elimination of our support from some fanatical and extremist elements.
@Amjad:
India has a $1.5 trillion economy and spends only $30 billion on defense. Add the fact that india is the fastest growing economy in the world and you will find my point.
Pakistan has been racing with India ever since it was born and look where it has brought it. Not much of race is it!
You can either quit this race voluntarily or go the way Soviet Union went. India is berely stretching it's legs and Pakistan is huffing and puffing. Face it. Financially india is no match to a Middle level power like Pakistan.
Assalam-o-Allaikum Warahmatullah.This is the real face of USA that Pakistan could never get self-reliance and could never stand on its own feet and behind the economic and military aid USA could get all its furtive and confidential objectives by in Pakistan by corrupt,beggars and slaves Pakistani leaders including key army officials.
@Cautious: Refusing money, who are you kidding? There are still some good schools, hopitals and other civic institutions working. Army would need more money and can expand its budget. We do not need anything for civilians in this country. That is why people send their kids to madarsas where they can get food and "training". The poorer the area of Pakistan the more kids go to the madarsa and become trained terrorists. Kasab is just one example. Thanks and regards, Mirza
@BruteForce: Coming from an Indian whose "democracy" spends billions on an aggressive weapons acquisition campaign sounds a tad hypocritical. After all the Indians started the nuclear arms race and conventional arms race in South Asia.
our army needs money in the so called greater interest of pakistan
For the anti USA brigade --- if you don't like the USA just don't accept the money - if you take the money have the courtesy to say "thank you".
By the way the military trainers were black water XE services and doing covert operations.
Military trainers from USA were Supplying plastic explosive material to Taliban and other groups who want money for creating chaos in Pakistan.
A few of them were spying on sensitive and strategic locations of Pakistan as well hiring ex army Majors, colonel, and Maj generals for good salary package as well green card offered.
@BruteForce:
I think the hike was certainly more than 10%.
Thats what Imran Khan has been saying for years...We, for them, are like a dog on a leash that they can shorten anytime they want to...our country's self-respect has taken a plunge because of shameless leaders on the top...really need someone like Imran Khan to come...so that as a nation, we can hold our head high!
No. Relations between the two governments were strained after American government employees murdered three Pakistani civilians in Lahore and the American government first lied about the killers being diplomats and then bullied the Pakistani government to let the killers go scott free. BTW, please keep your money
Money is money. The Civlians are controlled by the Military in this "Democracy".
This year Pakistani Defence budget hike was 10+ % when the economy barely grew by 2.5%.
So, what ever you give to Pakistan on the whole will end up with the Military.