Japan gives $260m loan for power sector: Dawn

ISLAMABAD: Japan has extended a soft loan of $260 million (23.3 billion yen) to Pakistan for the National Transmission Lines and Grid Stations Strengthening Project, which will cost Rs29.339 billion.

This is the first Japanese loan under the Official Development Assistance (ODA) based on the Pakistan Donors’ Conference hosted by Japanese government in April 2009 where a maximum of $1 billion in aid was pledged over a period of next two years.

Notes to this effect were signed and exchanged between Ambassador of Japan Chihiro Atsumi and Secretary Economic Affairs Division Sibtain Fazal Halim here on Wednesday.

The exchange of notes was followed by the signing of the loan agreement by EAD Additional Secretary Hassan Nawaz Tarar and the Chief Representative of Japan International Cooperation Agency (JICA) in Pakistan, Tomoharu Otake.

For more on this article, please click on the following link: Japan gives $260m loan for power sector: Dawn

Australia doubles aid package for Pakistan: Brisbane Times

MATT WADE

ISLAMABAD: Like the US, Australia is about to ramp up its aid to Pakistan, but questions are being raised about how it will ensure the money is well spent.

Australia will double its development assistance to Pakistan to almost $60 million, in addition to the $23 million in emergency assistance recently provided to families displaced by fighting in the north-west.

Most of the money will be directed to basic education and maternal and child health, and a large slice of the cash will fund scholarships for Pakistanis to study in Australia.

When asked if Australia had put any conditions on its aid, the Government agency AusAID said only that the aid program ''is conditional upon annual budget deliberations by the Australian Government''.

Australian aid to Pakistan and neighbouring Afghanistan is set to keep rising. The Government has pledged $650 million for development assistance over the next four years in the two countries, on top of military spending and assistance.

Last month the Prime Minister, Kevin Rudd, said Australia was doubling its military training to the Pakistani Army.

Much of Australia's aid is channelled through organisations such as the World Food Program, partnerships with other donor governments and non-government organisations.

For more on this article, please click on the following link: Australia doubles aid package for Pakistan: Brisbane Times

Strings may force Pakistan to reject US aid: Peninsula

ISLAMABAD: The debate on stringent conditions attached by the Obama Administration to the Kerry-Lugar Bill of aid is giving an option to Pakistan’s economic managers from barring the US to provide its aid in such a way where major chunk on the development projects — in the range of 50 to 60 percent of the $1.5bn per annum — is being spent and sent back to US in the name of consultancy and intermediatory costs.

All kinds of tough conditions have been incorporated in the Kerry-Lugar Bill to ensure strict audit in the name of transparency but it never touches the spending of money by the United States on consultancy, salaries and other intermediately costs to run the USAID funded projects inside Pakistan.

A relevant authority having knowledge on Pakistan’s economy is of the view that the US wanted to spend major chunk of the aid in its own bureaucratic way which in some cases rose to 65 to 70 per cent and certain projects currently being executed by USAID could be cited on this count.

For more on this article, please click on the following link: Strings may force Pakistan to reject US aid: Peninsula

Are Development Dollars in Pakistan Being Well Spent?: Time

By Ken Stier

To development experts who have long called for a shift in strategy in the Muslim world, it would seem like cause for celebration. After years of devoting the bulk of U.S. aid to Pakistan to military assistance, Washington is about to shift that equation. Under legislation approved by the Senate last week and by the House on Wednesday, Pakistan can expect to receive $1.5 billion of non-military (or civilian) aid for each of the next five years, which triples previous levels and will roughly balance out the amount of military aid the U.S. gives to Pakistan.

But getting the money is only half the battle; how well it works — and whether it helps to change strong anti-American sentiment — depends on getting it to the right people and projects on the ground. That job principally falls to the U.S. Agency for International Development (USAID), and many critics say its performance isn't very encouraging. "When you are spending large amounts of money at arm's length, operating in hostile environments, it is very easy for money to get spent corruptly and/or badly, and that is what I have seen in our health programs," says Roger Bates of the American Enterprise Institute, a trenchant USAID critic.

One early effort in education already appears to be a cautionary tale. Improving schooling in the country has been a key focus of U.S. development efforts, both to undermine the need for and appeal of religious schools (or madrasahs) and to advance literacy, which is 43% among adults; two-thirds of Pakistani women cannot read or write. In long, jargon-filled reports, the principal USAID contractor on an $83 million, five-year education-sector reform project, North Carolina–headquartered RTI (also known as Research Triangle Institute), claims to have "positively impacted" more than 400,000 students (out of 70 million school-age kids) through strengthening policy and planning, teacher and school-administrator training, and youth and adult literacy. But when USAID's inspector general sent a team over in August 2007 to check on the progress, it could not validate the claims because the USAID mission in Islamabad "did not require RTI to adhere to reporting requirements critical to monitoring the program performance." The problem was serious enough for RTI, which derived close to 40% of its $710 million in revenues last year from USAID, to be disqualified from follow-on contracts on this particular project.

For more on this article, please click on the following link: Are Development Dollars in Pakistan Being Well Spent?: Time

Australia, Italy pledge more aid to Pakistan: Dawn

ISLAMABAD: Australia will provide more development aid to Pakistan while Italy has promised a 20-million-euro soft-term loan for training in the marble sector in the NWFP and Balochistan.

The increase in Australian aid and military cooperation was announced by Australian Prime Minister Kevin Rudd and Foreign Minister Stephen Smith after the Friends of Democratic Pakistan summit in New York.

According to a statement issued by the Australian High Commission on Monday, the aid package included doubling of military training slots for Pakistan Army to 140 and establishing defence post-graduate scholarships, making Australia the second largest provider of overseas military training to Pakistan after the United States.

It also included expanding strategic dialogue, establishing an Australia-Pakistan development partnership focusing on health reforms, reconstruction of the Malakand region, promoting democratic governance and economic reforms and providing 100 agricultural scholarships.

Over the past couple of years Australia has increased defence and law-enforcement assistance, doubling development aid to $120 million for two years and contributing $23 million in humanitarian support since last year.

For more on this article, please click on the following link: Australia, Italy pledge more aid to Pakistan: Dawn

Saudi Arabia gives $100mln aid to Pakistan: Reuters

By Corinne Scotland

LONDON (AlertNet) - Saudi Arabia has pledged $100 million to Pakistan to help about 2.7 million people who fled their homes during fighting between government forces and the Taliban, the United Nations has said. So far Pakistan has received about $374 million in aid from more than 20 countries, private individuals and organisations. "This contribution from the Kingdom of Saudi Arabia is the single largest contribution received for the vulnerable populations of Pakistan," said Martin Mogwanja, Humanitarian Coordinator for Pakistan.

For more on this article, please click on the following link: Saudi Arabia gives $100mln aid to Pakistan: Reuters

Italy, Pakistan sign debt-swap agreement: Daily Times

ISLAMABAD: Italy on Friday agreed to convert Pakistan’s $100 million debt into aid for development projects in the social sector as part of the commitments made at the donor’s conference in Tokyo earlier this year. A debt-swap agreement was signed at the Economic Affairs Division, under which the development projects would be sponsored by the federal, provincial and local governments, non-governmental organisations or channelled through the relevant UN organisation.

For more on this article, please click on the following link: Italy, Pakistan sign debt-swap agreement: Daily Times

Pakistan got 970-mn dollars and not 3-bn dollars from US: Sify

The United States has provided 970 million dollars in aid to Pakistan since the PPP-led Government came to power and not three billion dollars as claimed by US Ambassador Anne Patterson, a Pakistani Finance Ministry official has said.

The statement of US Ambassador to Pakistan, Anne Patterson, about giving 3 billion dollars assistance to the Zardari Government even surprised the top economic managers of the country. They were completely clueless about the figure of 3 billion dollars floated by the US.

"Out of the total 970 million dollars funding, a major chunk of 550 to 600 million dollars was in shape of the Coalition Support Fund (CSF) as it was the money which was spent by Pakistan on military's movement and it took several months for clearance from the US authorities," The News quoted a a senior official of the Finance Ministry, as saying.

The US has provided less than one billion dollars to Pakistan since the PPP-led government came into power, he said.

The US provided 497 million dollars in shape of CSF in May 2009. Earlier, the US provided around 100 million dollars on the same head a couple of months back - at the end of last financial year.

For more on this article, please click on the following link: Pakistan got 970-mn dollars and not 3-bn dollars from US: Sify

Canada's expanded aid to Pakistan to help fight terrorism: theglobeandmail

Campbell Clark
Ottawa — From Thursday's Globe and Mail

Canada will expand aid to Pakistan, notably to bolster the weak public school system that has left a void to be filled by fundamentalist madrassas, as Ottawa increasingly views the country's stability as key to success in Afghanistan.
In Pakistan Wednesday, International Co-operation Minister Bev Oda pledged $25-million for food, water and emergency shelter for refugees who fled a Pakistani military offensive against Taliban insurgents four months ago.
Many of the more than 2 million people who left their homes in the Swat Valley in April are returning. But the huge numbers of refugees have placed a strain on local resources, and reconstruction efforts will be costly.
“They're rebuilding police stations, judiciary, making sure that power is available, water is available, gas is available,” said Ms. Oda, who visited the Jalozai Internally Displaced Persons camp Tuesday.
In addition to the $25-million in emergency aid, Canada will expand its longer-term development assistance to Pakistan, Ms. Oda said, as it joins other countries in linking success against the Taliban insurgency in Afghanistan – the largest single recipient of Canadian aid – with stability in Pakistan.

For more on this article, please click on the following link: Canada's expanded aid to Pakistan to help fight terrorism: theglobeandmail

$1bn Japanese aid to Pakistan: BBC

Japan has said it will pledge up to a billion dollars in aid to Pakistan. The announcement came ahead of a meeting of donor countries taking place today in Tokyo which is expected to raise between four and six billion dollars.

Prime Minister Taro Aso made the announcement that Japan would pledge up to a billion dollars of aid after talks with Pakistan's President Asif Ali Zardari. The two men met ahead of international meetings in Tokyo on Friday that will include the United States, China and the European Union, as well as other donors. Pakistan is looking for billions of dollars more from them.

For more on this article, please click on the following link: $1bn Japanese aid to Pakistan: BBC

Italy to finance $100mn projects for Pakistan: Gulf Times

Italy has agreed to finance ten development projects worth $100mn from the debts that Pakistan has to pay to Italy, a report said yesterday.

Both the countries have also agreed to allocate $10mn for rehabilitation of internally displaced persons (IDPs). The allocation for the IDPs would be negotiated with the Frontier authorities for rehabilitation of areas affected by the war against extremism.

For more on this article, please click on the following link: Italy to finance $100mn projects for Pakistan: Gulf Times

Pakistan may get additional $200m aid: The News

KARACHI: US Ambassador to Pakistan, Anne Patterson informed that an additional $200 million aid assistance for Pakistan, was approved on Tuesday, while at the same time, the US is also working on the $1.5 billion annual financial assistance promised to the country for the next five years.

She further said $30 million had already been provided for the Internally Displaced Persons (IDPs) earlier. Patterson added that the US was also ready to provide assistance to deal with the energy crisis of Pakistan.

She also stated that the Obama administration is working hard towards implementing the bill on the Reconstruction Opportunity Zones (ROZ) of Pakistan and she was optimistic that work would soon begin on it.

Addressing the media at the inauguration ceremony of the new American Business Council of Pakistan (ABC) office premises on Tuesday, she admitted that while the House of Bills had approved of it, there were some differences in the Senate which the Obama administration was working to resolve.

Patterson said that it was a challenge for the US to expand their trade to developing countries when they themselves were facing critical times due to recession as the western country was also facing losses and increasing unemployment threats.

However, she added that the Obama administration was working on increasing investments in the country and she too personally encouraged American businessmen to visit Pakistan and invest here.

For more on this article, please click on the following link: Pakistan may get additional $200m aid: The News

EU offers over $138 mn in aid to Pakistan: Sify News

The European Union (EU) is to give Pakistan over 100 million euros ($138 million) in aid, more than half of it for victims of the recent fighting in the Swat Valley, EU officials said Wednesday at the first ever EU-Pakistan summit here.

'I will be able to announce today more than 100 million euros... because we stand by the Pakistani people,' EU Foreign Affairs Commissioner Benita Ferrero-Waldner said as she arrived for talks with Pakistan's President Asif Ali Zardari.

Czech President Vaclav Klaus, who chaired the summit as the holder of the EU's rotating presidency, said that the EU 'takes Pakistan very seriously' and was 'aware of the tremendous importance Pakistan has in the region'.

But Zardari said that he was most interested in boosting trade relations with the world's largest economic bloc.

'What I need is trade, not aid,' he said before the summit.

Officials from the European Commission, the EU's executive, said that the aid decision was intended to 'help the most vulnerable' among the hundreds of thousands of civilians displaced by fighting between government and Taliban-linked forces in the Swat Valley.

For more on this article, please click on the following link: EU offers over $138 mn in aid to Pakistan: Sify News

US approves bill of $1.5 bln non-military aid to Pakistan: The News

by Sami Abraham
WASHINGTON: The unanimous approval of Enhanced partnership with Pakistan act of 2009 (bill s-962) by the US Senate Foreign Relations Committee, here on Tuesday, has brought Pakistan another step closer to receive the annual non-military economic assistance of $ 1.5 billion for next five years.

Senator John Kerry, Chairman of US Senate Foreign Relations Committee hailed the measure as a "strong bipartisan effort" to help people of Pakistan and said that anti-Taliban military offensive has given hope in the context of curbing militancy and fostering peace in the area. He said it is very critical that US provide required assistance to Pakistan, immediately, and millions of displaced people are brought back to their homes safely.

Senator Kerry and Senator Lugar also urged the US senate to pass the bill as soon as possible.

The US House of Representatives has already approved, last Thursday, a Bill HR1463 to tripple the developmental economic assistance to Pakistan (making it $ 1.5 billion annually) for the next five years. Though the US House dropped, controversial specific demands to access Dr A.Q. Khan and prevention of future terrorist attacks against India, it still puts it as a condition that Islamabad would have to provide “access to Pakistani nationals” connected to proliferation networks” and prevent future terrorists attacks into neighboring countries”.

The version approved by the Senate Foreign Relations Committee, as compared to the US House International relation committee, seems to be closer to the version supported by Pakistan. The language, in the bill, is less intrusive and does not micro-manage Pakistan. The bill is expected to be placed before the US senate for a vote within days.

Pakistan's ambassador to the United Staes Mr Hussain Haqqani also praised the the approval of S-962 by US Senate Foreign Relations Committee and said that any conditional aid to Pakistan will not send any positive signal to people of Pakistan . He said that the support of US Law makers was encouraging People and Government of Pakistan in meeting the challenges of fighting against the menace of terrorism.

For more on this article, please click on the following link: US approves bill of $1.5 bln non-military aid to Pakistan: The News

US announces separate 400 billion dollar counter-insurgency aid for Pakistan: Thaindian

Washington, May 27 (ANI): The United States has set up a separate aid of about 400 billion dollars to help Pakistan counter extremism effectively.

The annual fund named the Pakistan Counter-insurgency Capabilities Fund (PCCF) would primarily provide sophisticated weapons and counter insurgency training to the Pakistan military.

The fund would be in addition to the war supplement that has already been approved by the Senate.

The PCCF will allow the US Central Command officials to work directly with the Pakistani military to help build its counter-insurgency capability, The Dawn reports.

A Pakistan Embassy spokesman said that this additional fund would be of great help in the ongoing military operations in Swat and the Federally Administered Tribal Areas (FATA).

For more on this article, please click on the following link: US announces separate 400 billion dollar counter-insurgency aid for Pakistan: Thaindian

Bilateral talks in Japan over $1 bln aid for Pakistan: The News

TOKYO: Two-day talks between Pakistan and Japan have started here over the latter’s pledge during Friend of Pakistan Forum last month to extend one billion dollars aid to Pakistan.

Chairman Privatization Board Salim Mandviwala is heading the delegation representing Pakistan in the talks being held in Tokyo.

For more on this article, please click on the following link: Bilateral talks in Japan over $1 bln aid for Pakistan: The News

Chinese aid for IDPs touches $5.4 million: Daily Times

BEIJING: To help the Pakistani government meet the daily needs of the rising population of IDPs of Swat and adjoining areas, the Chinese government has announced an additional 30 million Renminbi (RMB/Yuan) in assistance for the affected people, Pakistan Ambassador to China Masood Khan said on Saturday. He said that China’s total contribution for assistance to the IDPs had now reached $5.4 million.

For more on this article, please click on the following link: Chinese aid for IDPs touches $5.4 million: Daily Times

Obama Administration Announces $110M in Aid for Pakistan: Fox News

The United States will give $110 million for humanitarian aid to Pakistan to assist them while the country fights Taliban militants. Secretary of State Hillary Clinton made the announcement at the White House saying it would go to help almost 2 million Pakistani people who have been displaced due to the fighting in the Swat region. The money will go towards the purchase of food, water, tents, fm radios and generators to provide water and light for those people that are living in tent cities. Secretary Clinton says the aid is not only "the right thing to do but essential." The money will not be distributed directly to the Pakistani government but will instead be channeled to humanitarian aid organizations.

For more on this article, please click on the following link: Obama Administration Announces $110M in Aid for Pakistan: Fox News

Pakistan to receive $2.3 billion by June: Tarin: PakWatan

ISLAMABAD, Pakistan will receive $2.3 billion from US and other donors before end of June, Advisor to Prime Minister on Finance Shaukat Tarin told a news conference here on Friday. Giving details of his meetings at Japan, Libya, US and with International Monetary Fund (IMF) at Dubai, he said.

The World Bank, Asian Development Bank, and US would release $600 million, $800 million and $900 million respectively, whereas International Development Bank (IDB) will give $23 million. He said that Pakistan's delegation had convinced the IMF during the review of March quarter in Dubai for allowing an increase in fiscal deficit by next fiscal year.

This fiscal space was required owing to decline in revenue on account of negative growth by large-scale manufacturing (LSM) and shrinking import as both contributed 60 percent and 40 percent respectively to the revenue. He said that the IMF allowed increment in fiscal deficit by 1.2 percent (from 3.4 to 4.6 percent in the next fiscal year) which would enable Pakistan to use Rs 180 billion as a short-term measure to increase industrial productivity.

He said that IMF was told that Friends of Pakistan (FoP) pledges would not cater Pakistan's urgent need of short-term growth and this could only be possible through increase in fiscal deficit. The advisor said that IMF was satisfied with performance of Pakistan economy and would soon release $840 million tranche.The board meeting in mid-June will recommend release of the tranche, he said, adding that Pakistan budget figures for next fiscal year were also discussed in the Dubai meeting.

For more on this article, please click on the following link: Pakistan to receive $2.3 billion by June: Tarin: PakWatan

Japan provides $20 mln assistance to Pakistan: APP

ISLAMABAD, May 18 (APP): The government of Japan would provide 2 billion Japanese Yen (about US$20 million) to Pakistan as Non-Project Grand Aid (NGPA) for the year 2009. An agreement in this regard was signed by Ambassador of Japan, Chihiro Atsumi and Secretary, Economic Affairs Division, Farrakh Qayyum on behalf of their respective governments.

The NGPA is used by developing countries in order to supplement economic structural adjustment efforts and overcome economic disparities and difficulties.

Speaking on the occasion, Farrakh Qayyum appreciated the role of Japan for extending all out support to Pakistan and for hosting the Friends of Democratic Pakistan and Doners conferences which he said were great success for Pakistan.

He said that Pakistan values Japan’s assistance in the fields of education, health, energy, environment, disaster management in general and for this grand particular.

He said that the Japanese assistance in economic cooperation has played a key role in the development of social sector with specific focus on human resource development and poverty reduction.

For more on this article, please click on the following link: Japan provides $20 mln assistance to Pakistan: APP