US Committee unanimously okays $15 billion Pakistan aid

[Neo]

US Committee unanimously okays $15 billion Pakistan aid ​

WASHINGTON, July 30, 2008: The U.S. Foreign Relations Committee on Tuesday unanimously approved the Biden-Lugar bill, committing 15 billion dollars of development assistance to Pakistan over next decade. The action took place on the occasion of the visit of Pakistan's Prime Minister Yousaf Raza Gilani to Washington D.C. and his efforts with the US Congress and the President of the United Sates on behalf of the legislation.

Pakistan's envoy to the United States Husain Haqqani said "the government and people of Pakistan are grateful to the members of the Senate Foreign Relations Committee for their unanimous, bipartisan and broad vote in support of Pakistani democracy".

"Today's action by the Committee heralds a new day in the bilateral relationship between the United States and Pakistan, a relationship that will be founded on mutual interest and mutual values, an economic partnership that transcends political and military relations and directly impacts the life of the people of Pakistan," he added.

"We are especially grateful to the leadership and vision of Senators Biden, Lugar, Kerry and Hagel. The fifteen billion dollar commitment to the long term development of a prosperous and stable Pakistan, is a dramatic expression of the confidence and support of the United States Congress in the future of democracy in Pakistan," Haqqani said.

US Committee unanimously okays $15 billion Pakistan aid : Business Recorder | LATEST NEWS

 

[araz]

I know we need the money for balancing the budget. However, all it means to me is that we are living beyond our means and inspite of repeated injections of cash from various sources, we have not learnt our lessons. Pakistani economy may have risen to a large extent, but our reliance on aid from everybody and anybody is a shameful aspect to me. We must learn to live within our means. Only then will peopel realize what dire state we are in and pull their fingers out of their various orifices and do some work for a change. All this aid will do is makeus more and more reliant on more aid and most of it will go to line the pockets of various thieves and scoundrels who fill the higher echelons of PAkistani power.
I am no economist and my understanding of economics is zero, but thyis is my opinion.
WaSalam
Araz

 

[Neo]

I know we need the money for balancing the budget. However, all it means to me is that we are living beyond our means and inspite of repeated injections of cash from various sources, we have not learnt our lessons. Pakistani economy may have risen to a large extent, but our reliance on aid from everybody and anybody is a shameful aspect to me. We must learn to live within our means. Only then will peopel realize what dire state we are in and pull their fingers out of their various orifices and do some work for a change. All this aid will do is makeus more and more reliant on more aid and most of it will go to line the pockets of various thieves and scoundrels who fill the higher echelons of Pakistani power.
I am no economist and my understanding of economics is zero, but thyis is my opinion.
WaSalam
Araz

Generally I agree with your post but I don't think we're living beyond our means. Current malaise is caused by sky rocketing fuel price and inflation whereas export sector is hit severly by shortage of power resulting in negative bank balance.
US economic assistance, I don't see this as aid since it serves both sides, is meant to ease budgetary and monetary pressure and to continue ongoing reforms and mega projects.
If spent wisely. i.e. power sector and human development $1.5 billion per years could boost the economic growth by 2-3%.

 

[Neo]

But we need to push for BIT and more access to US market. Best way to assist Pakistan is t enhance trade between the countries.

 

[fatman17]

But we need to push for BIT and more access to US market. Best way to assist Pakistan is t enhance trade between the countries.

unfortunately BIT is stuck because of IPR issues, however there may be movement here because Monsanto and the GoP are nearly agreed on the introduction of Bt.cotton in Pakistan by Monsanto (almost exclusively)

 

[fatman17]

US Committee unanimously okays $15 billion Pakistan aid ​

WASHINGTON, July 30, 2008: The U.S. Foreign Relations Committee on Tuesday unanimously approved the Biden-Lugar bill, committing 15 billion dollars of development assistance to Pakistan over next decade. The action took place on the occasion of the visit of Pakistan's Prime Minister Yousaf Raza Gilani to Washington D.C. and his efforts with the US Congress and the President of the United Sates on behalf of the legislation.

Pakistan's envoy to the United States Husain Haqqani said "the government and people of Pakistan are grateful to the members of the Senate Foreign Relations Committee for their unanimous, bipartisan and broad vote in support of Pakistani democracy".

"Today's action by the Committee heralds a new day in the bilateral relationship between the United States and Pakistan, a relationship that will be founded on mutual interest and mutual values, an economic partnership that transcends political and military relations and directly impacts the life of the people of Pakistan," he added.

"We are especially grateful to the leadership and vision of Senators Biden, Lugar, Kerry and Hagel. The fifteen billion dollar commitment to the long term development of a prosperous and stable Pakistan, is a dramatic expression of the confidence and support of the United States Congress in the future of democracy in Pakistan," Haqqani said.

US Committee unanimously okays $15 billion Pakistan aid : Business Recorder | LATEST NEWS

its how we spend this money will be the key.!

 

[niaz]

US Aid except when it is Military or PL-480 can be expensive. I came to know about the restrictions way back in the 70's when we were importing some high grade lubricants and additives under a US AID License. The imports had to be on US flag vessels or in Pakistani ships only. The sellers were nominated and prices sky high. End result was that the imported goods from US under AID turned out to be far more expensive than from any where else. To a very large extent US Economic Aid in effect is of greater help to US companies in disposing off their produce than it benefits the Recipient. Japanese Aid rules are far more lenient.

I am not saying that we should not thank US for a very generous ($1.5-billion) per year Aid for next ten years. It is a lot of money. We simply shouldn't get carried away either. There are always a lot of strings attached.

 

[AgNoStiC MuSliM]

I know we need the money for balancing the budget. However, all it means to me is that we are living beyond our means and inspite of repeated injections of cash from various sources, we have not learnt our lessons. Pakistani economy may have risen to a large extent, but our reliance on aid from everybody and anybody is a shameful aspect to me. We must learn to live within our means. Only then will peopel realize what dire state we are in and pull their fingers out of their various orifices and do some work for a change. All this aid will do is makeus more and more reliant on more aid and most of it will go to line the pockets of various thieves and scoundrels who fill the higher echelons of PAkistani power.
I am no economist and my understanding of economics is zero, but thyis is my opinion.
WaSalam
Araz

To expand upon Neo's comments - the crisis we find ourselves in has also been exacerbated by the violence in Afghanistan and the overflow into Pakistan.

This isn't entirely about economic mismanagement, Pakistan needs to find a solution to the instability in FATA and it doesn't seem that there are any quick and sustainable long term solutions.

I do find it odd that we still haven't seen movement on the FATA development bill, which IMO is far more important than this aid bill (not to suggest that it isn't generous and welcome). Unless we get moving on implementing long term solutions in FATA, the instability is going to remain a constant drain on Pakistan's economy.

 

[blain2]

US Aid except when it is Military or PL-480 can be expensive. I came to know about the restrictions way back in the 70's when we were importing some high grade lubricants and additives under a US AID License. The imports had to be on US flag vessels or in Pakistani ships only. The sellers were nominated and prices sky high. End result was that the imported goods from US under AID turned out to be far more expensive than from any where else. To a very large extent US Economic Aid in effect is of greater help to US companies in disposing off their produce than it benefits the Recipient. Japanese Aid rules are far more lenient.

I am not saying that we should not thank US for a very generous ($1.5-billion) per year Aid for next ten years. It is a lot of money. We simply shouldn't get carried away either. There are always a lot of strings attached.

Niaz sahib,

Personally as long as there is not a lot of overhead with this US Aid, I am ok with the strings being attached..I am fine with them telling the GoP that certain money should only go towards schools etc..strings being attached to military aid becomes problematic...however conditions on how to spend economic aid are fine...they are giving it, we have to get used to their dictates on how it should be used.

A bigger problem for Pakistan is the pilfer and siphoning of the aid money...our politicians our experts at it thus you see the lousy results after billions in loans, grants given to Pakistan over the past years.

 

[IceCold]

I know we need the money for balancing the budget. However, all it means to me is that we are living beyond our means and inspite of repeated injections of cash from various sources, we have not learnt our lessons. Pakistani economy may have risen to a large extent, but our reliance on aid from everybody and anybody is a shameful aspect to me. We must learn to live within our means. Only then will peopel realize what dire state we are in and pull their fingers out of their various orifices and do some work for a change. All this aid will do is makeus more and more reliant on more aid and most of it will go to line the pockets of various thieves and scoundrels who fill the higher echelons of PAkistani power.
I am no economist and my understanding of economics is zero, but thyis is my opinion.
WaSalam
Araz

Very rightly said. In the end this money will not even be used to support the budget or for that matter give some relief to the poor instead it will go down into various pockets, and the price of that will have to be beard by Pakistan and Pakistan alone. Its really pathetic. Every dollar they give they will gonna take out the double of it. politicians.

 

[araz]

neo ,Agno, Blain 2 and Icecold.
Thank you for your respective posts. My concern has always been that Pakistan has forever been a recipient of various aids and grants.Frankly, I dont see whether we have benefitted from them. It certainly has given the powers that be money to spend on things that are not necessary. I know my knowledge of economy is Zilch. But i remember my Dad telling me that in undivided Sindh, ruled by the very wise Sindhi Hindus(Please dont think I am starting a religious slant here) the muslims were badly subjugated and most of them were in debt to their lords and Masters. If ever a Muslim Boy was found to be bright and intelligent, they would always ask his parents what he would do after studying. They would offer him a job on condition that he came and worked for them, thereby discontinuing his education. It was always the short sighted approach of the local populace that kept them in debt and deprived them of education and prosperity.
I think Aid is not akin to being offered that job. I would much rather we stood on our own two feet and go through hardships and hard work to achieve our aims, it would be better for us as a nation and as individuals. I t is indeed a generous offer , but the matter lies in how it is spent.
WaSalam
Araz

 

[Skywalker]

neo ,Agno, Blain 2 and Icecold.
Thank you for your respective posts. My concern has always been that Pakistan has forever been a recipient of various aids and grants.Frankly, I dont see whether we have benefitted from them. It certainly has given the powers that be money to spend on things that are not necessary. I know my knowledge of economy is Zilch. But i remember my Dad telling me that in undivided Sindh, ruled by the very wise Sindhi Hindus(Please dont think I am starting a religious slant here) the muslims were badly subjugated and most of them were in debt to their lords and Masters. If ever a Muslim Boy was found to be bright and intelligent, they would always ask his parents what he would do after studying. They would offer him a job on condition that he came and worked for them, thereby discontinuing his education. It was always the short sighted approach of the local populace that kept them in debt and deprived them of education and prosperity.
I think Aid is not akin to being offered that job. I would much rather we stood on our own two feet and go through hardships and hard work to achieve our aims, it would be better for us as a nation and as individuals. I t is indeed a generous offer , but the matter lies in how it is spent.
WaSalam
Araz

Dear Araz,

Unfortunately the situation still remians the same, as the hindu lords have been replaced by a muslim losrd who is even more worst and this is beyond our imagination.

 

[Neo]

Bush backed $15 billion Pakistan aid bill: Gilani​

ISLAMABAD (July 31 2008): Prime Minister Yousuf Raza Gillani has said that President Bush has strongly supported $15 billion of non-military development assistance to Pakistan, as the U S Foreign Relations Committee unanimously approved the Biden-Lugar bill, committing foreign assistance of this huge amount during next ten years.

In an historical event during Gilani's visit to USA, the US Foreign Relations Committee approved the Biden-Lugar bill to provide assistance of $15 billion to Pakistan over the next one decade.

Addressing the think-tank event jointly organised by the council on Foreign Relations and the Middle East Institute in Washington on last day, the Prime Minister said that Inter-Services Intelligence (ISI), Intelligence Bureau (IB), and all other agencies are fully under the control of the civilian government and the US should also provide civilian nuclear technology to Pakistan for meeting the demands of energy in the country.

The PM said that all of Pakistan was heartened by the United States Senate Foreign Relations Committee unanimous passage of the Biden-Lugar bipartisan $15 billion plan for ten years non-military commitment by the US to the people of Pakistan. This legislation also has the support of President Bush, who is eager for democracy to succeed in Pakistan.

The $2 billion FATA plan, to which the US has contributed $750 million over a five-year period, would help accelerate social sector development in the tribal areas, contributing to the efforts to rescue the tribal people from the clutches of ignorance, extremism and foreign terrorist.

He said that this extraordinary recognition of the need to broaden and strengthen the bilateral relationship beyond merely military relations to a genuine economic and social partnership to building a prosperous, just and democratic Pakistan, has riveted the attention of the people of Pakistan.

The Biden-Lugar Plan, the Reconstruction Opportunity Zones program, and the FATA social development plan, taken together, are a clear and bold signal to the people of Pakistan that not only is Pakistan back in business, but the US is standing with it in a long-term mature partnership.

He said that there are abundant business and investment opportunities in Pakistan. "We have established special economic with special incentives for foreign companies to invest. In the last PPP government, Pakistan was cited by the World Bank (WB) as one of the top ten emerging markets in the world. Foreign investment in Pakistan quadrupled, but we want to recreate the economic incentives for foreign investment and trade that will re-establish our nation as a leader in the emerging global economy."

He said that one of the great tragedies of the modern era is that after achieving the liberation of Afghanistan, the world failed to reconstruct a post-war Afghanistan built on democratic principles of coalition, consensuses and compromise. "We failed to rebuild civil society and promote democratic institutions. The US thought short-term, but not long term, as far as reconstruction of a post-war Afghanistan is concerned."

Meanwhile, Pakistan's envoy to the United States, Husain Haqqani, said: "The government and the people of Pakistan are grateful to the members of the Senate Foreign Relations Committee for their unanimous, bipartisan and broad vote in support of Pakistani democracy".

He said: "Today's action by the Committee heralds a new day in the bilateral relationship between the United States and Pakistan, a relationship that will be founded on mutual interest and mutual values, an economic partnership that transcends political and military relations and directly impacts the life of the people of Pakistan.

"We are especially grateful to the leadership and vision of Senators Biden, Lugar, Kerry and Hagel. The $15 billion commitment to the long-term development of a prosperous and stable Pakistan is a dramatic expression of the confidence and support of the United States Congress in the future of democracy in Pakistan."

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

The $2 billion FATA plan, to which the US has contributed $750 million over a five-year period, would help accelerate social sector development in the tribal areas, contributing to the efforts to rescue the tribal people from the clutches of ignorance, extremism and foreign terrorist.

Do we details of how the $750 million will be spent? Anyone?

Imho atleast half the amount should be spent to improve educational infrastructure, more schools and free education.

 

[araz]

Do we details of how the $750 million will be spent? Anyone?

Imho atleast half the amount should be spent to improve educational infrastructure, more schools and free education.

Neo.
Ithink all of it should be spent on setting up viable industries. The local people will get jobs which are more important in the immediate future, education and health can come afterwards as the populace needs to adjust to the demands of their respective jobs. The more older I get the more this thinking makes sense to me. It is not education , but lack of opportunities to earn a living that causes all the frustration in the society.
regards
Araz