US assures Pakistan of economic support
Partly agrees to demands of financing mega energy projects.
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.
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.