Pakistan fears a reduction in US assistance this year because the US Congress is in the process of slashing the national budget and is looking at foreign assistance in this regard.
Official Sources told Business Recorder that the White House has announced plans to increase food aid and continue "significant levels of funding" for development assistance to countries like Afghanistan and Pakistan in 2012 budget. These plans may be opposed in the US Congress because the lawmakers are insisting on cuts in foreign assistance.
Talking about the disbursements under Kerry Lugar Bill, sources said that USAID has not given any budgetary support to Pakistan since 2005, as budget support means 'a check without any strings attached'.
"In 2009, a few cash transfers were made like $85 million to the Benazir Income Support Programme, which provided small cash grants to female heads of households, and $45 million to the Higher Education Commission to provide scholarships to needy students. But it is not budgetary support because the money is going to specific things," sources maintained.
USAID never spends a full year's appropriation during that specific year. "USAID received a total budget of $400 million in 2008, $900 million in 2009 and $1.3 billion in 2010 for Pakistan which was received on the very last day of their fiscal year that is September 30, 2010", sources revealed.
Sources added, "$650 million is the amount of money USAID had received in fiscal year 2010 budget that was going to programmes implemented in partnership with the federal or provincial governments of Pakistan. This means that money is being given to the government implemented programs".
Sources elaborated, "An amount of $62 million has been implemented for the development of seeds with the governments of Khyber Pakhtunkhwa, Punjab, Sindh and Balochistan, or the southern Punjab Education programme to build schools in partnership with the Punjabi government, or the Municipal services programme with four provincial governments".