In the 1980s the US congress passed the Pakistan Aid Bill for US $3.2 billion over a period of five years. The bill required 10-12 Presidential Certifications (at different times) every year including on restoration of democracy, human rights protection, nuclear non-proliferation and drugs control. In the 2003 Congress again passed a Pakistan aid bill for US 3 Billion over a period of 5 years.
That too included Presidential waivers certifying that Pakistan is moving toward restoration of democracy, nuclear non-proliferation, countering terrorism etc. Kerry-Lugar bill is the first Pakistan aid bill that does not require Presidential certification every year. However, the Secretary of State has to certify that Pakistan is moving on the path to democracy, nuclear non-proliferation and control of democracy.
This is also Pakistan state policy. The bill has therefore come up against serious criticism in the National Assembly as well as among the public in general. The US Senate voted in September to triple non-military aid to Pakistan to roughly 1.5 billion dollars per year through 2014 in its effort to show the world that Pakistan is a critical and strategic ally.
President, Obama formally, signed the bill into law on 15 October 2009. "This law is the tangible manifestation of broad support for Pakistan in the US, as evidenced by its bipartisan, bicameral, unanimous passage in Congress,' White House spokesman Robert Gates said.
The signing followed efforts by the Obama administration and US lawmakers to allay concerns in Pakistan over conditions linked to the aid package, while making clear the legislation would not be changed. The bill, passed unanimously, had been agreed upon between the Senate and House sponsors of legislation passed separately by each chamber earlier this year.
The sponsors are Senators John Kerry and Richard Lugar. The bill has incorporated improvements over the earlier version of the Kerry-Lugar bill passed by the Senate and the House. The vital aspect of the bill is that its language is far less prescriptive and stringent than the original version.
Specific references to India as well as AQ Khan have been eliminated while the language related to nuclear proliferation is markedly toned down - from "ensure access of US investigators to individual suspected" to receiving co-operation "in efforts such as providing relevant information from or direct access to Pakistani nationals associated with such networks."
On 23rd September in an unprecedented show of support for Pakistan, major economic powers agreed to the formation of a multi-donor trust fund (MDTF) to help the country build its tribal areas which have been the worst victim of the fight against the militants.
In an unprecedented show of solidarity President Barack Obama, President Asif Ali Zardari and Prime Minister Gordon Brown co-chaired the meeting of Friends of Democratic Pakistan (FoDP). President Asif Ali Zardari stressed the significance of Obama's gesture, saying it reflected the confidence the international community had in the new democratic set-up in Pakistan.
Foreign Minister, Shah Mahmood Qureshi termed the summit a 'diplomatic success', stating that it represented a vote of confidence in the Pakistani nation. "We have come a long way. Democracy has completed a full circle," he said. "We have a message for the extremists: There's no place for them in the civilised world." The President went on to add, "A stable, prosperous Pakistan is the world's greatest hope against the spread of extremism and terrorism."
The total amount of the bill passed by US Senate for the FY 2009 is $3021.0 m. $1147.5m would be given under the head of Development and Reconstruction out of which $33.5m will be given under the head of Child Survival and Health Program whereas Economic Support Fund would receive $1,114.0m while $1,102m will be made available for the country in FY2010 with $27.9m and $1,074.3m on Child Survival and Health Program and Economic Support Fund respectively.
Pakistan will receive a total of $1103.1m under the head of Security Assistance out of which Foreign Military Financing would be $300.0m this year, whereas $700.0m have been allocated for Pakistan Counter Insurgency Fund; $13.3m would be spent on non-profit, Antiterrorism, Demining and Related Issues.
The head of International Narcotics & Law Enforcement would receive a total of $87.5m while $2.3m would be spent under the head of IMET. It is worthy to mention here that $298.0m, $22.7m, $155.2m and $4.0m respectively would be given to the country under the same head in FY 2010.
Pakistan will receive a total of $255.4m under the head of Humanitarian grant; further details are that Migration and Refugee Assistance will be given $69.6m while Food for Progress $31..0m, PL480 $36.3m and International Disaster Assistance will be given to the tune of $118.0m in the FY 2009.
Migration and Refugee Assistance will receive $20.0m while no money has been reserved for Food for Progress, PL and International Disaster Assistance in the FY 2010.Total State Department ops will entail $2,506.0m in this fiscal year whereas it would be $1602.0m in the next fiscal year.
The Department of Defence will receive a total of $515.6m in which Counter Narcotics will receive an amount of $63.3m this year and $38.4m in the next financial year while $25.0m have been reserved on the name of Fata Authority this year.
Ensuring that the present government does not face any obstacle in its democratic dispensation, a condition in the bill requires that the security forces of Pakistan do not subvert judicial processes. The aim of the legislation is to promote stability in the country.
It is worthy to mention here that the bill underlines the importance of supporting Pakistan's national security needs to fight the ongoing counterinsurgency and improve its border security and control. However, it does not specify any amount or percentage. This provides the Administration maximum flexibility and none of the conditions can set in motion automatic sanctions.
The Kerry-Lugar bill also formally known as Enhanced Partnership with Pakistan Act 2009, provides a total of $7.5 billion in aid to the Pakistan government over a period of five years This money is crucially required by the government to rebuild its infrastructure worn down by years of fighting militants in NWFP and Fata.
As stated by Foreign Minister Shah Mahmood Qureshi in July this year, Pakistan has incurred a loss of $35 billion from years of conflicts and military operations against Taliban and al Qaeda terrorists. While he had pointed out a figure to describe Pakistan's economic loss due to the war on terror, the Foreign Minister said that the loss of life from these operations as well as from terrorist incidents had been immeasurable.
The Kerry Lugar bill is no different from previous US aid legislations for Pakistan, which had similarly prescribed certain conditions for nuclear non-proliferation and has no direct implications for Pakistan's nuclear installations. However, it does provide some relief, however small, for Pakistan's role in the ongoing war on terror.