Govt’s proposal seeking control over flood aid shot down

Donors and global financial institutions are asked to channel their funding through the government.

ISLAMABAD: The trust-deficient PPP government faced yet another setback when its proposal to seek full control of the international aid was turned down by donor countries and international financial institutions at a recent meeting of the Friends of Democratic Pakistan in Brussels.

The Pakistan side, led by Foreign Minister Shah Mehmood Qureshi at the two-day meeting, tabled a proposal envisaging measures the government has put in place to ensure the transparent utilisation of funds. The proposal also urged donor countries and global financial institutions to channel their funding through the government.

Currently, a large portion of aid for flood victims and other assistance under the banner of Friends of Democratic Pakistan is coming through NGOs because of issues of transparency and accountability.

However, the government is of the opinion that the utilisation of funds through NGOs carries a much higher administrative cost. “Therefore, we believe the government should have full control over aid,” an official told The Express Tribune.

The official, while requesting anonymity, said that despite Pakistan’s assurances, international donors did not agree with the idea.

Pakistan’s High Commissioner in London Wajid Shamsul Hassan said control over aid would bolster the legitimacy of democratic government. “The funds should be dispersed by parliament and the civilian government rather than the army,” he said in an interview with a British newspaper.

“People are not giving the democratic government the credit it deserves for managing relief efforts,” he added.

The Friends of Democratic Pakist, which was formed in September 2008 to help Pakistan in its efforts to revive economy and fight terrorism, pledged $5.4 billion with a commitment of releasing $2.5 billion this year. However, the forum which comprises over 12 countries, including the US and European Union and five multi-lateral financial agencies, has so far provided less than $1 billion to Pakistan.

The slow response is attributed to the international concerns over corruption.

However, official sources say the government is planning to renew its proposal at the meeting of the Pakistan Development Forum, scheduled to take place in Islamabad next month.

Published in The Express Tribune, October 21^st, 2010.