US-Pakistan relations under review

It has been reported in a section of the Press that the United States is currently working on an economic package for Pakistan and Afghanistan as an integral component of its new security strategy in the region. This strategy is under review by the Obama Administration, headed by Richard Holbrooke, Special Representative for Afghanistan and Pakistan.
Pakistan's Foreign Minister Shah Mehmud Qureshi is in the United States at present with a delegation comprising senior military and civilian officials. Chief of Army Staff as well as the Chief of the Inter Services Intelligence (ISI) are also reportedly in the US. Thus all the stakeholders are in the US and one hopes that the result is the formulation of a more comprehensive and targeted policy that has the capacity to effectively deal with all issues, military, economic as well as political, pertaining to our security concerns.
With respect to economic concerns it is relevant to note that the Pakistani government's loss to the economy due to the War on Terror is estimated at approximately 35 billion dollars. This figure reflects the physical damage done to areas where this war has been ongoing and includes not only the destruction of homes and other buildings, including schools and offices, but also the massive number of internally displaced persons (IDPs) who can only be relocated at great cost.
Over and above this expenditure is the military hardware that has been destroyed as a consequence of the war and for which the US government had already committed full payment; unfortunately there are considerable pending dues in this regard. Meeting these heavy costs is a challenge for the present government especially considering that the country continues to be embroiled in an economic imbroglio.
With the government struggling to meet its obligations as accepted in the Letter of Intent (LoI) submitted to the International Monetary Fund's Board as a prerequisite to get approval for the 7.6 billion dollar stand-by arrangement it is hoped that some relief in the form of payment is received soon. Loss of exports mainly due to inability of buyers to visit Pakistan plus tourism, etc, is on top of all this.
Both the US and Pakistan are in agreement that dealing with the menace of fundamentalism and extremism in the long run requires the provision of a basic level of social sector facilities in the restive regions which would consist of providing education and healthcare to all; as well as employment opportunities which, in turn, would dry out the recruitment drive of the Taliban. A total of 60 billion dollars is considered a reasonable figure to meet all our requirements, short term as well as medium and long term. Few consider this a likely prospect.
The global financial crisis has forced many a country, including the United States, to invest huge sums of money into their domestic economy in an attempt to provide a stimulus to their economy, a policy that will result in rising budget deficits. President Obama has pledged to the American public that he will slash the annual deficit in half by the end of his four-year term - a pledge that would, undoubtedly, have repercussions on the US foreign aid package.
Thus it is evident that at present the US alone is unlikely to provide assistance to Pakistan that comes close to our expectations. A similar situation is evident in other countries and it is doubtful if the Friends of Pakistan meeting would produce any different results. The recent enhancement in the Indian defence budget is primarily aimed at exerting more pressure on Pakistan. We need not fall into the trap and implode from within.
With respect to the political issues as a part of our security concerns it is evident that until and unless Kashmir is resolved through a proactive US role Pakistani forces would continue to find it difficult to focus on the war on terror. It is unfortunate that in spite of proclamations to the contrary the decision of the Obama administration to drop India from Holbrooke's title after India's reservations is unfortunate. However Pakistan must be emboldened as Holbrooke did visit India during his first trip to Pakistan and Afghanistan. His visit was little, nevertheless significant appreciation of ground realities.