Pakistan, Captain America's On the Phone: Miller-Mccune

U.S. officials counter by insisting they are imposing tight transparency and accountability requirements — once again, annoyingly, as if for the first time. Additionally, they say, the funds will be channeled through local grassroots organizations to develop the capacity of local civil society. Currently, 70 to 80 cents of every dollar allocated in aid comes back to the U.S. instead of staying in the country it is meant to benefit because of USAID's dependence on contractors.

This figure (found here) apparently startled Richard Holbrooke, President Obama's regional point man, and he is reportedly looking into the idea of a trust fund to get more buy-in from Pakistanis and keep more of the money in-country. (A similar setup has been working in Afghanistan.) That's just one of many things that need to change for the U.S. to have a chance to succeed in Pakistan.

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Row grows over bill to boost US-Pakistan trade: Guardian

Saeed Shah in Peshawar

A furious row has broken out between US clothing manufacturers and American retailers over a flagship assistance policy for Pakistan, aimed at boosting the textile industry in war-torn parts of the country.

At stake are American jobs. The policy, contained in a bill before Congress, would allow Pakistani clothing makers in the Taliban-dominated north-west of the country to export their products duty-free to the US. But critics say that could come at the cost of American workers.

American retailers, such as Wal-Mart and Levi Strauss, and brand owners, together with Pakistani manufacturers, are lobbying to expand the terms of the initiative. They say the programme is so restrictive in the products it covers that it is a "hollow gesture" and would not boost the current $3.1bn (£1.9bn) worth of annual textile exports from Pakistan to the US.

The bill, championed by Barack Obama, seeks to provide employment for people who might otherwise be sucked into militant groups, which pay handsomely. "If this [bill] was amended, it could really turn things around in NWFP [North West Frontier Province]," said Afan Aziz, the chairman of the NWFP wing of the All Pakistan Textile Mills Association.

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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.

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$1.5bn US aid conditions compromise sovereignty: The News

By Mansoor Ahmad

LAHORE: Economists, entrepreneurs and civil society are perturbed by the strings attached with $1.5 billion yearly US aid package for Pakistan that infringe on its sovereignty. They have urged the government not to compromise its dignity and adopt austerity instead.

They point out that the common man is unaware of the most insulting comments of the US public about Pakistan’s protest against the strings attached to the aid package proposed by the United States. The US public in comments carried on the media said things like beggars can't be choosers, if Pakistan does not like the conditions refuse the money, etc.

They point out that $1.5 billion looks big amount as the rulers and the nation even in present testing times are still indulged in unnecessary spending based on imported goods. They said that it is high time that the government take steps to curb all unnecessary imports and expenditures where foreign exchange is involved.

Leading engineering entrepreneur Almas Hyder said that once a country accepts unreasonable conditions for economic aid there is no end to the donors’ demands. He said economic aid could be linked to improvement of governance, equitable taxation but it could not be bracketed with political performance the parameters of which compromise the sovereignty of the country.

He said the country should go forth with stopping unnecessary imports. He said it looks criminal to import $26 million worth of dog food when human beings are starving in the country. He said Pakistan has highest per capita edible oil consumption in the world that should be curbed to bare minimum by duties on edible oil. He said there is no need to import chocolates, candies, processed juices, cosmetics, and luxury cars that could save more than $1.5 billion import bill. He said these measures would impact only 5 per cent of the privileged class of the country.

Senior economist Naveed Anwar Khan FCA said If Pakistan accepts strings attached with US aid package it would be at the mercy of the United States that would determine whether we have taken the steps according to its vision and satisfaction. He said the aid would always be uncertain and create more uncertainty in the economy than now.

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