Billion plus U.S. budgetary package for Pak.

By B. Muralidhar Reddy

ISLAMABAD, NOV. 16. The United States signed a billion plus budgetary package and bilateral assistance for Pakistan to help it overcome economic problems even as Japan announced assistance to the tune of $37 million to provide humanitarian assistance to the people of Afghanistan.

A memorandum of agreement on $600 million in direct budget and balance of payments of support was signed by the U.S. Ambassador to Pakistan, Ms. Wendy J. Chamberlin, and the Pakistan Secretary, Economic Affairs Division, Mr. Nawid Khan, here on Thursday. The U.S. envoy outlined details of the additional $400 million bilateral assistance to Pakistan agreed to by her country.Observers see the package as a reward to Pakistan for joining the U.S. in its fight against the Taliban militia and Osama bin Laden.

The Japanese grant of $37 million was announced here by a visiting delegation led by Mr. Aiboshi Koichi, Director, Humanitarian Assistance Division, Ministry of Foreign Affairs, Japan. The money would be given to WFP, Unicef, UNHCR and ICRC for their operations in Afghanistan, he told the Minister.

The U.S. Ambassador said at the ceremony that $600 million are being provided in direct budget and balance of payment support programme for Pakistan. In addition, the U.S. has agreed to provide bilateral assistance in different fields as part of the `billion dollar plus package'.

Ms. Chamberlin said it was a grant aid. The provision of this foreign exchange aid would enable it to allocate an equivalent sum of Rs. 36 billion to fund President Musharaff's social sector priorities, including education, job creation, health, small scale community infrastructures projects.

She said it may be distributed by the newly elected local government officials in a way that strengthens the grassroots democracy within Pakistan and advanced Gen. Musharraf's democracy road map.

She said that $600 million was the first part of the package that was pledged during President Musharraf's visit to the U.S. and maintained that the aid would help Pakistan get out of its debt trap.

Send this article to Friends by E-Mail

Section  : International
Previous : Saudi Prince calls for restraint in sermons
Next     : Action replay, different actor