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Wednesday, March 03, 2010

Pakistan to use aid from Kerry-Lugar Act for better governance

* $3.5bn investment in high impact and high visibility programmes
* $247 million to be spent on upgrading thermal power stations

By Sajid Chaudhry

ISLAMABAD: Pakistan has agreed with the US to spend the $7.5 billion aid package of the Kerry-Lugar Act to ensure good governance, eliminate corruption, strengthen security and legal institutions and making investments in high impact and high visibility programmes during the period from 2010 to 2014, Economic Affairs Division Secretary Sibtain Fazal Ali informed the National Assembly Standing Committee on Economic Affairs on Tuesday.

The committee met in the Parliament House under the chairmanship of MNA Malik Azmat Khan and discussed issues relating to the use of US economic assistance in the country as well as the role of non-governmental organisations in terror-hit areas of the country.

Explaining the $3.5 billion investment in high impact and high visibility programmes, Ali said that these programmes include political reforms, girl’s primary education reforms, government effectiveness, rule of law and control of corruption. To achieve the said objectives, US economic assistance to the tune of $2 billion would be spent on promoting agriculture in the country, $1 billion would be spent as support for permanent solution to Pakistan’s energy crisis and $500 million on other programmes.

He said, the areas where investment would be made to achieve the said objective have been identified as well as improvement in national and local governance projects worth $1 billion and an improved security and legal institutions project worth $1 billion.

The secretary said that President Obama has approved the Kerry-Lugar Act because he is aiming at an enhanced partnership with Pakistan. Under the proposed agreement the US would provide Pakistan financial assistance to the tune of $1.5 billion annually with a total of $7.5 billion during the next five years.

Under the Strategic Objectives Grant Agreements (SOGA), USAID and Government of Pakistan had signed six agreements amounting to $478.5 million on September 30, 2009. These programmes included an education sector reforms program worth $107 million, governance program worth $32 million, economic growth program worth $124 million, health and population welfare
program worth $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 internally displaced persons (IDPs), $85 million for the Benazir Income Support Program (BISP) and $45 million for the Higher Education Commission (HEC).

The remaining amount of $247 million would be released to Pakistan for upgrading the Jamshoro Thermal Power Station, Muzaffargarh Thermal Power Station, Guddu Thermal Power Station and the replacement of 11000 pumps of agriculture tube wells in the country.

Courtesy www.dailytimes.com.pk

 

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