Pak-US ties: US to continue civilian aid, mega energy projects, PM told

Assurance to ease fears that IMF assistance may be affected.


Express July 17, 2011

ISLAMABAD:


A week after announcing suspension of military assistance to Pakistan, the US has assured the government that civilian assistance and financing of mega projects in the energy sector will continue.


Finance minister Abdul Hafeez Sheikh apprised Prime Minister Yousaf Raza Gilani on Saturday that US Deputy Secretary of State Thomas Nides has assured him of “continuation of civilian assistance, willingness to undertake major projects in the energy sector including the Diamer Basha Dam and preparation of programme to reflect priorities set by the government of Pakistan.”

The finance minister also briefed the prime minister on the suspended Coalition Support Fund, part of the military assistance package Pakistan was receiving under the Kerry-Lugar bill, said the media office of the Prime Minister House.

Pakistan was due to receive $800 million in this regard which has now been put on halt. There were fears that suspension of US assistance could affect the bailout package Pakistan is receiving from the International Monetary Fund (IMF).

However, while concrete assurances from the US for continuation of civilian assistance is likely to annul such fears, some analysts believe that the government would have to divert more civilian resources for the armed forces if the US does not review its decision on military aid.

‘Strategic convergence’

Islamabad has said that strategic convergence is emerging between Pakistan and the United States that will lead to a win-win situation for both sides.

In her weekly news briefing here on Saturday, Foreign Office Spokesperson Tehmina Janjua said that Pakistan attaches great importance to its relations with Washington.

The US has reconfirmed that it will continue its civilian assistance while for resumption of military assistance and other issues, diplomatic engagements and discussions are under way, Janjua said.

(With additional input from wires)

Published in The Express Tribune, July 17th, 2011.


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