US will extend $7.5 billion under Kerry Lugar package during 2010-14: National Assembly panel informed

The United States has decided to extend $7.5 billion aid under Kerry Lugar package for agriculture, energy, good governance and humanitarian and social services during five years (2010-14). Secretary Economic Affairs Division Sibtain Fazal Ali informed National Assembly Standing Committee on Economic Affairs Division here on Tuesday that the US will provide financial assistance to the tune of $1.5 billion annually with a total amount of $7.5 billion during the five years (2010-14) under the Kerry Lugar package.
The committee met in the parliament house with Malik Azmat Khan MNA in the chair. Senior officials of the Economic Affairs Division were also present. He said Pakistan has agreed to spend $7.5 billion under Kerry Lugar package on good governance, elimination of corruption, strengthening of security and legal institutions and making investment in high impact and high visibility programmes during 2010-14.
Under the projections of the US assistance for 2010-14, the Secretary EAD said $3.5 billion investment would be made in high impact and high visibility programmes. These programmes included political rights, girls' primary education, government effectiveness, rule of law and control of corruption. The US economic assistance of $2 billion would be spend on promoting agriculture in the country; $1 billion as support for permanent solution to Pakistan's energy crisis and $500 million on other programmes.
Out of a total of $7.5 billion, nearly $2 billions would be spent on civil liberties, political rights, voice and accountability, government effectiveness, rule of law and control over corruption. The areas where investment would be made to achieve the said objective has been identified as improvement in national and local governance project worth $1 billion and improved security and legal institutions project worth $1 billion.
The Secretary EAD informed the committee that about $2 billion would be spent on projects such as improvement in focused humanitarian and social services in the country. Approximately $500 million would be spent on immediate post-crisis and other humanitarian assistance and $1.5 billion on increased access to quality of education and health services in Pakistan.
He said the US Congress has already approved authorisation of $7.5 billion US economic assistance for Pakistan; however, the approval for its appropriation is still awaited. He further informed the committee that the US has provided $5.277 billion economic assistance to Pakistan during last eight years 2002-03 to 2009-10.
The US debt worth $1.495 billion has been written off, $247 million have been provided for emergency supplement programmes, $174 billion for cash transfer, $1.2 billion economic assistance (budgetary support) and $363 million assistance for combating narcotics. The United States has recently signed agreements for disbursement of $899.5 million to Pakistan for current fiscal year 2009-10 for emergency supplement programmes, cash transfer and economic assistance as budgetary support.
Under the Strategic Objectives Grant Agreements (SOGA), the USAID and Pakistan have signed six agreements amounting to $478.5 million on September 30, 2009. These programmes included education sector reforms programme $107 million, governance programme $32 million, economic growth programme $124.2 million, health and population welfare programme $50.1 million and Fata development assistance at $115.2 million.
Out of this assistance Pakistan has so far received $107.5 million mainly $44 million for IDPs, $85 million for BISP and $45 million for HEC. The remaining amount worth $247 million would be released to Pakistan for upgradation of Jamshoro Thermal Power Station, Muzaffargarh Thermal Power Station, Guddu Thermal Power Station and replacement of 11000 pumps of agriculture tubewells in the country. Agreements in this regard are yet to be signed.
He said the US utilises its economic assistance through its own partner organisations in the private sector mainly NGOs and the United Nation organisations, however, present government is in consultation with the US authorities so that this assistance is spent through government of Pakistan's official machinery for more transparency and efficient utilisation of funds for peoples benefit.
The committee was further informed that presently all US assistance being disbursed to Pakistan is grant or aid based and the country would not be required to pay it back. It was also informed the United States is utilising its aid in areas that have already been declared priority areas by the government of Pakistan.