News
Saturday, May 22, 2010
‘Aid under Kerry-Lugar Law to begin from Oct’
* US coordinator says aid programmes to be implemented through Pakistani institutions
By Sajid Chaudhry
ISLAMABAD: The grant of financial aid to Pakistan under the Kerry-Lugar Law will start following the beginning of the next US fiscal year in October 2010, US Coordinator for Civil Assistance to Pakistan Robin Raphel said on Friday.
In a briefing at the US embassy, Raphel said the money had not been appropriated as yet and “it would come to Pakistan from the next fiscal of the US starting from October 2010”.
“US fiscal year 2010 will be the first year of release of Kerry-Lugar Law. They are now working with the government of Pakistan on how to spend the money,” she said.
“The government of Pakistan has assured the US of resolving the Centre’s dispute with Sindh on the value-added tax (VAT),” Raphel said.
The implementation of VAT will have a major impact on the country, as it will help it fulfil its commitment to the International Monetary Fund (IMF) for receiving the next aid tranche, and help in expanding the tax-base.
Implementation: The US coordinator said the Kerry-Lugar Law was an unusual and different undertaking, as significant amount would go to infrastructure development and the US would be implementing the programmes through Pakistani institutions.
She added that the focus of this assistance would be on vulnerable areas like FATA, Khyber Pakhtunkhwa, southern Punjab and parts of Balochistan.
Apart from this assistance, the US is in policy dialogue with the government of Pakistan.
She said the constrains were not because of a lack infrastructure or the country’s engagement in the war on terror, but the number of policy reforms that needed to be worked upon to generate additional revenue like VAT and power and agriculture sector reforms.
“The constrains are not because of a lack infrastructure or the country’s engagement in the war on terror, but the number of policy reforms that need to be worked upon to generate additional revenue like VAT and power and agriculture sector reforms,” the US coordinator for civil assistance to Pakistan said.
She said the US would give priority to generation of power, infrastructure sector and provision of basic necessities of life to the people living in remote areas.
“The US will give priority to power generation, infrastructure sector and improvement of basic needs of life to the people living in remote areas of the country through provision of adequate funds for the new projects,” Raphel said. Giving details of the projects, she said the US was diverting its focus to major projects in various sectors, including power generation, road and infrastructure development, health and education sectors.
Courtesy www.dailytimes.com.pk