Foreign aid to Pakistan

Pakistan receives foreign aid from several different countries and international organization. Since the start of the War in Afghanistan, the majority of the Aid comes from the United States.The Majority of US assistance to Pakistan is from the Coalition Support Fund which is reimbursement to Pakistan for expenses already incurred and compensation for facilities made available to the coalition forces such as the Shamsi Airfield and Dalbandin air bases by Pakistan as well as $4 billion has been billed to CSF Fund for the training and services provided by American Military and contractors to Pakistan Security Forces [1]

Contents

  • Multilateral aid 1
    • Election support 1.1
  • United States 2
    • Election support 2.1
    • U.S. financial aid to Pakistan since the September 11, 2001 attacks 2.2
    • Cuts in US Aid 2.3
      • How US Aid is spent 2.3.1
    • Military and economic aid 2.4
  • United Kingdom 3
  • Pakistani Proposals for Foreign Assistance 4
    • Free trade deals 4.1
    • Debt cancellation 4.2
  • See also 5
  • References 6
  • External links 7

Multilateral aid

Pakistan has taken significant loans from the International Monetary Fund.

Election support

One of the biggest organizations supporting the electoral process in Pakistan is the Election Support Group (ESG). ESG is an internationally supported group of interested parties, made 32 specific recommendations to the Election Commission based on the recommendations of 16 international organizations.[2] A meeting was held in October 2009 to present these ideas to the Commission.[3] The Commission commissioned ESG to provide them with a recommendations on how to best solve the addressed problems.[3]

United States

Former U.S. Ambassador to Pakistan Anne W. Patterson addressed senior bureaucrats at the National Management College and emphasized that the United States will assist Pakistan’s new democratic government in the areas of development, stability, and security.[4] The United States Agency for International Development (USAID) in Pakistan, officially announced the signing of an agreement valued at $8.4 million to help ease Pakistan's food crisis.[4] It is also hoped by the United States that Pakistan under the administration of Nawaz Sharif would only strengthen relations between Pakistan and the United States. Since the start of the War in Afghanistan, the majority of the Aid comes from the United States.The Majority of US assistance to Pakistan is from the Coalition Support Fund which is reimbursement "to Pakistan for expenses already incurred and compensation for facilities made available to the coalition forces such as the Shamsi Airfield and Dalbandin air bases by Pakistan as well as $4 billion has been billed to CSF for the training and services provided by American Military and contractors."

Election support

In 2006, the International Foundation for Electoral Systems (IFES) implemented a 9 million dollar contract through USAID to install a computerised electoral rolls system for the Pakistani government.[5]

USAID, IFES, United Nations Development Programme (UNDP), and National Democratic Institute for International Affairs (NDI) have also coordinated a number of initiatives to help train election officials in Pakistan.[6] Part of this activity was the establishment of a Federal Election Academy and a library to support the Election Commission of Pakistan.[6]

U.S. financial aid to Pakistan since the September 11, 2001 attacks

Between 2002-2010, US Congress approved $18 billion[7] in military and economic aid from the United States. However the Pakistan Treasury only received $8.647 billion in direct financial payments.

Western officials have claimed nearly 70% (roughly $3.4 billion) of Military aid given to the military has been misspent in 2002-2007 and used to cover civilian deficit.However,Pakistan argues the civilian deficit was caused by poor economy from the War on Terror. However U.S-Pakistani relationship has been a transactional based and U.S military aid to Pakistan and aid conditions has been shrouded in secrecy for several years until recently .[8][9][9][10] Furthermore a significant proportion of U.S. economic aid for Pakistan has ended up in back in the U.S., as funds are channeled through large U.S. contractors. A U.S. lawmaker also said majority of U.S. economic aid has not left the U.S. as it spent on consulting fees and overhead cost.[11][12] Pakistan also states it has spent $80 billion on the War on Terror since 2001.[1]

Cuts in US Aid

The Kerry Luger Bill passed in 2009 after democratic elections in Pakistan had proposed $1.5 billion in annual assistance to Pakistan.[13] However due to problems and differences in the bilateral relationship over issues such as Drones,India,Reymound Davis the full amount was not transferred. Pakistan was promised $1.5 billion annually till 2014, but in the very first year the target was not met. Only $179.5 million out of $1.51 billion in U.S. civilian aid to Pakistan was actually disbursed in fiscal 2010.[14]

How US Aid is spent

Of the $179.5 million received by Pakistan in 2010, $75 million of the US aid funds were transferred to bolster the Benazir Income Support Program, a social development program run by the Pakistani government. Another $45 million was given to the Higher Education Commission to support "centers of excellence" at Pakistani universities; $19.5 million went to support Pakistan's Fulbright Scholarship program; $23.3 million went to flood relief .[14]

Military and economic aid

Year Military (USD in billions) Economic (USD in billions)
2002 1.36 1.233 for 2002 to 2004
2003 1.500 1.233 for 2002 to 2004
2004 1.200 1.233 for 2002 to 2004
2005 1.313 .338
2006 1.260 .539
2007 1.115 .567
2008 1.435 .507
2009 1.689 1.366
2010 1.232 1.409
2011 1.685 unknown
Total 11.740 billion[15] 6.08 billion[16]

United Kingdom

United Kingdom has pledged £665 million to Pakistan from 2009-2013.[17]

Pakistani Proposals for Foreign Assistance

Free trade deals

Pakistan has been trying to negotiate free trade deals with the EU and America as part of Western assistance in war against terror instead of aid . This policy is supported by the Washington based think tank Center for Global Development [18]

Debt cancellation

Pakistan has been trying to negotiate debt cancellation currently Pakistan spends $3 billion on debt servicing annually. [18]

See also

References

  1. ^ a b http://pakobserver.net/detailnews.asp?id=118118
  2. ^ International Foundation for Electoral Systems (2009). "Election Support Group". Retrieved October 25, 2009. 
  3. ^ a b "CEC-ESG discuss Electoral Reforms Recommendations". Islamabad: The Associated Press of Pakistan. October 12, 2009. Retrieved October 25, 2009. 
  4. ^ a b "The United States Embassy" (in English (U.S.)). Retrieved 2008-12-21. 
  5. ^ Computerised electoral rolls system installed Daily Times (Pakistan), September 10, 2008. Accessed July 23, 2009.
  6. ^ a b Capacity building key to meet modern day challenges, The International News (Pakistan), July 14, 2009. Accessed August 7, 2009.
  7. ^ http://www.thenews.com.pk/daily_detail.asp?id=226110
  8. ^ [1]
  9. ^ a b Walsh, Declan (February 27, 2008). "'"Up to 70% of US aid to Pakistan 'misspent. The Guardian (London). Retrieved May 2, 2010. 
  10. ^ Rohde, David; Gall, Carlotta; Schmitt, Eric; Sanger, David E. (December 24, 2007). "U.S. Officials See Waste in Billions Sent to Pakistan". The New York Times. Retrieved May 2, 2010. 
  11. ^ "U.S. to channel more aid via Pakistan government". Reuters. April 14, 2010. 
  12. ^ Upadhyay, Brajesh (May 16, 2008). "'"US aid 'failing to reach target. BBC News. Retrieved May 2, 2010. 
  13. ^ http://globalvoicesonline.org/2009/10/14/pakistan-the-kerry-lugar-bill/
  14. ^ a b http://www.pakalumni.com/profiles/blogs/should-pakistan-tell-us-where-to-shove-its-aid?id=1119293%3ABlogPost%3A81696&page=2/
  15. ^ http://belfercenter.ksg.harvard.edu/files/Final_DP_2009_06_08092009.pdf
  16. ^ Department of Defense statistics
  17. ^ UK Conservatives would step up Pakistan aid effort
  18. ^ a b http://www.allvoices.com/contributed-news/6031139-pakistan-seeking-trade-not-aid-gilani

External links

  • Reassessing Foreign Assistance to Pakistan
  • Pakistan: U.S. Foreign Assistance Congressional Research Service.
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