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The perplexing nature of American aid to Pakistan

The Pakistani public may be very patriotic and proud of their nation. Its culture, traditions and lifestyle are indeed very intricate. But within the intricacy of its lifestyle is embedded...


The Pakistani public may be very patriotic and proud of their nation. Its culture, traditions and lifestyle are indeed very intricate. But within the intricacy of its lifestyle is embedded the hard truth about Pakistan’s sovereignty and independence. Sixty-four years of existence have been punctured with foreign aid, most of which comes from the United States or international institutions heavily influenced by Washington.
Pakistan shares a tumultuous relationship with the United States. Over the years, Pakistan has played a significant role in fighting America’s proxy war against the Soviets in Afghanistan; the Pressler agreement suspended US military aid to Pakistan; Pakistan allied itself with the US to fight the “War against Terrorism” and later on the Afghan war, where it offered its personnel and bases for US operations.  In turn, US has helped Pakistan in its defense systems and contributed significantly in some civilian projects too. This year was marked with Davis’s murder of two Pakistanis, the raid against Osama bin Laden and the NATO attack killing 24 Pakistani soldiers last month.
But the “mother-in-law” has never been as difficult is it being now.
Since 2002, the US has been providing $ 2 billion aid annually to Pakistan making it the 3rd largest recipient of US aid. But recently, it decided to freeze approximately $700 million in aid until they receive assurances from Islamabad to take actions against militants who make improvised explosive devices (IEDs) against US forces in Afghanistan.
This is not the first time that rumors and conspiracies have emerged about the hypocritical role of the US on one hand and the disloyalty of the Pakistanis in supporting the militants. Both sides suffer from misconceptions produced from the multiple discourses that come from the two governments and the media.
The American public has started to question the allocation of tax payer’s money to aid a nation which harbors a deep-seated hatred against them. With the economic slump in America, it seems sensible to revoke this aid and reassign it to benefit American nationals.
Americans aren’t completely wrong in gauging Pakistani sentiments; many Pakistanis openly criticize what they see as US interference in Pakistani affairs. They regard US as untrustworthy for it deserted Pakistan to deal with the Afghan Mujahideen and narcotics trade in Afghanistan, supported India in the Indo-China War, did not assist Pakistan in its Wars with India, deliberately withheld the delivery of F-16’s which were paid in advance and even charged Pakistan for parking fees at the hanger. And the list goes on and on.
What many of them overlook is that Pakistan received $5.6 billion in aid during 1979-1989, when Pakistan developed its nuclear weapons. From 2002-2005, America gave $ 4982 million in security aid and last year alone, it gave Pakistan $ 2735 million and $ 1604 million for security and civilian aid respectively.
Repeatedly members of the civilian government have acknowledged the importance of US aid to Pakistan.  Finance Minister Hafeez called Pakistan heavily dependent on US aid and FM Khar’s statement on cutting US aid showed that it controlled progress in Afghanistan. Even our very own president admitted that the withdrawal of US aid would have an impact on Pakistan’s economy.
Withdrawing this aid could greatly strain the already tense relationship between the two countries. America has to realize that this step could prompt Pakistan into looking for other regional assistance like China or Iran, both of which would not be in America’s interest.  Just recently, Pakistan disregarded US government’s threats to impose sanctions should it proceed with the Iran-Pakistan gas pipeline project.  Furthermore, Pakistan is essential in bringing peace to Afghanistan, something the Americans have themselves acknowledged. In that case, losing Pakistan as ally would be a grave mistake.
Others believe that a slash in US aid can undercut the army’s performance against Taliban especially since Pakistan is undergoing a financial crisis. Defense analysts, Ayesha Siddiqua and Hasan Askari concur that with financial constrains, Pakistan’s security and stability could be affected. It is equally important to consider the domino effect of losing US aid. Askari believes this could also affect disbursements from IMF to Pakistan, which it is greatly dependant on. $2 billion worth of military and economic aid amounts to around 0.8 % of the GDP and 2.7 % of external trade. Some of this aid comes in the form of goods. But since, the Pakistani economy is in a crisis and the government is hardly spending on education and health, the aid can be regarded as significant.
And most of all, cutting US aid would add another coin to the Anti-American piggy bank and once again prove America’s superficial commitment to the long-term development of Pakistan. It doesn’t look very optimistic since US announced its decision to trim civilian aid projects from 160 to 50 projects. We could be looking at a belligerent Pakistani public at any future dealings with the US. As former ambassador, Maleeha Lodhi rightly says “Assistance is influence”.
US aid on the other hand is not free from glitches either. There are often many conditions on the aid offered (security assistance only) and even when both parties have agreed to the terms, the aid is delayed. According to US Government Accountability Office, only $ 179.5 million out of $ 1.51 billion in U.S. civilian aid to Pakistan was actually disbursed in 2010 – $75 million were given to support the Benazir Income Support Program, $45 million was given to the Higher Education Commission to support “centers of excellence” at Pakistani universities, $19.5 million to the Fulbright Scholarship program, $23.3 million for flood relief while $1.2 billion is still unspent.
Some extreme believers think that US aid is designed to impose US solutions to Pakistani problems and a break from this aid would give Pakistanis a chance to stand up on their own feet.  This is in fact one of the strong points proposed by Imran Khan, leader of Pakistan Tehrik-i-Insaf.
Of the aid Pakistan does receive, the Army is confident that it would not affect its operations against the militants. Former Pakistani Foreign Minister, Khurshid Mehmood Kasuri, has faith in the resources of the Pakistan Army in operation without US aid.  According to General Abbas, Pakistan Military spokesman, two military operations were being executed in Mohmand and Kurram regions without any external assistance  since al-Qaeda together with other militant organizations were a threat to Pakistan too. In fact, he said the Army chief had suggested reallocating Coalition Support Funds to the much-needed civilian areas. In fact, the Pakistani Army has not been billing US for reimbursements, amounting to at least $ 600 million (assuming no change in operations), for the past 6 months.
There have been rumors about the civilian projects too.  Organizations and personnel are assigned to the project through contacts who gain from bribes and illegal commissions. If the flow of aid is stopped then perhaps these corrupt officials would shift their attention to other projects.  The intended victim who should be receiving the aid would probably not be affected since he/she doesn’t get much at the moment either. Let us have a look at some of the US funded projects in more detail.
Pakistan Initiative for Mothers and Newborns (PAIMAN)
Initiated in 2004, PAIMAN was designed to reduce maternal, new born and child mortality in Pakistan’s 24 districts, 2 frontier and 2 FATA agencies. In the six year program, PAIMAN was able to save more than 30,000 newborn babies by reducing neonatal mortality rate by 23 percent.
PAIMAN’S strategy of implementation involved working with district departments of health, public and private health care providers, community-based non-governmental organizations, traditional birth attendants (TBAs) and stakeholders such as ulema and local political representatives.
Some of the activities carried out by PAIMAN included broadcasting awareness programs on TV and radio to increase the public’s knowledge in mother and child problems. In addition, communication skills and group counseling was taught to 11,057 lady health workers while other skilled care was delivered to 5,262 medical staff. Clean delivery kits (CDKs) were distributed through Green Star. During Year 5 alone, 76,748 CDKs were sold while 15,847 kits were distributed as samples and incentives. Health infrastructural facilities were also upgraded to make them functional 24/7.
A local NGO representative, however, mentioned that about 70% of the aid was utilized for consultancies leaving little behind for the poor mothers and children. He said that every NGO involved in the project had to give a share of their allocated funds to the district health officials to be allowed to work. Nevertheless, he greatly commended the training of community midwives and the provision of CDKs, calling it the sustainable element of the project.
BENAZIR INCOME SUPPORT PROGRAM (BISP)
BISP was launched by GOP in 2008 with an allocation of Rs. 34 billion. The project was intended to counter the effects of inflation on the lower class citizens in all four provinces, FATA, AJK and Islamabad Capital Territory. According to the program, a cash assistance of Rs. 1000 per month would be delivered to the enrolled families, such that it would enhance the income of a family earning Rs. 5000 by 20%. BISP is a diversified program ranging from health insurance ( Waseela-e-Sehat) to vocational training( Waseela-e-Rozgar) to micro-finance( Waseela-e-Haq). Waseela-e-Taleem initiative for educating students will enroll one million poor children in schools.
Chairperson Raja said that BISP is currently supporting 6 million families across Pakistan (2.4 million in Sindh and 1.9 million in Punjab). She said that 15 million women have acquired a National Identity Card in a span of 3 years, thereby giving them access to various facilities as citizens of Pakistan.
BISP aims to encourage families to start their own business after which they would stop receiving financial assistance.   However, there are reports that fully employed workers are still receiving these benefits. Then again, the idea of the program is to bolster regular income.
While some Pakistani organizations and even the World Bank have lauded BISP for its transparent system, some embezzlement cases have come up.  In November 2010, two postmen were allegedly involved in misappropriating funds approximating Rs. 248000. Earlier this year, post office officials at Daur, Sindh,demanded bribes from an estimated 10000 women who were forced to pay Rs. 200-300 to them.  Last month, an embezzlement of Rs. 8.1 million funds was found in Hasilpur and Jamalpur. Nawaz Sharif has even accused BISP of using funds for flood victims for their programs. BISP is introducing the Benazir Smart Card as an alternate payment mechanism which could help reduce, if not eliminate, frauds associated with the Post Office.
MILITARY AID
Unlike non-security assistance, military aid to Pakistan is conditional.  Under the Foreign Military Sales Program, Pakistan purchases weapons and equipment from the US. It also includes the cost of anti-terrorism operations against the Taliban through the Coalition Support Fund( CSF). This is a method by which the US Department of Defense could keep an eye on the outcomes of the war for the aid provided. The CSF is thus not aid but rather Pakistan’s due right. Congress appropriated $1.6 billion for CSF for 2011. However, it cannot be said for certain if the reimbursements are conditional too or not.
Military assistance and arms transfer under the Kerry-Luger Berman Bill is dependent on the certification given by the US Secretary of State. GOP has to cooperate with the US in fighting forces related to the unlawful acquisition of nuclear weapons and show “sustained commitment” in ceasing support to militants, preventing cross-border attacks and upholding counterterrorism and anti-money laundering laws. Finally, it has to ensure that Pakistan’s security forces do not undermine political or judicial processes of Pakistan.
The conditions imposed on military aid are debatable. US has valid reasons to pursue these conditions because of a fear that Pakistan may be carrying out its own agenda, one that might be contrary to US interests. Admiral Mullen openly said that the Haqqani Network was a “veritable arm” of Pakistan’s ISI. There are also rumors in the West that Pakistan Army spends its aid on equipment which is not utilized in fighting the Taliban. In fact, US officials have reported that a portion of the aid is spent on bolstering security at the Pak-India border. Some of the compensation asked by Pakistan has been rejected for its uncertainty or exaggeration.
It is high time that Pakistan starts empowering indigenous projects. This should not be taken as an anti-American stance.  Every country deserves to be independent and as self-sufficient as possible. US aid should be used to assist our projects not dominate them. Pakistani investors need to contribute to the projects which both US and Pakistan mutually agree upon. At the same time, Pakistan needs to generate tax revenue and cut down unnecessary expenditures. While it is difficult to imagine, the two countries should attempt to keep military and civil aid separate from each other. It could help dispel some of the suspicions the Americans and Pakistanis have against each other.
We need to avoid making rash statements about US-PAK relationship and try to understand each other’s position so that negotiations can be more productive. The ultimate reality is that we both need each other in this war. So threats to completely disengage are premature. The trust deficit that exists is due to the fact that the two sides are not fully open with each other. Going back and forth trying to decipher the true intensions of the other party only ends up wasting time and resources. Policies executed during this transitional period could be destructive too. Transparency and honesty are the only ways to know the motives behind US aid and what in turn Pakistanis need to do to acquire this aid.
By: Nida Afaque
    Courtesy: TACSTRAT ANALYSIS

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the SPY EYES Analysis and or its affiliates. The contents of this article are of sole responsibility of the author(s). SPY EYES Analysis and or its affiliates will not be responsible or liable for any inaccurate or incorrect statements and or information contained in this article.

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