ISLAMABAD: In another development to escalate the existing tension with Pakistan, United States of America is going to reduce the USAID grants to Islamabad by 25 per cent. As announced by President Trump this year the grants under Agency for International Development (USAID) to Pakistan would be reduced by 25 per cent, which will affect over 23 ongoing social development projects, well-informed sources told Pakistan Today.
According to them, the US has informed concerned ministries in Pakistan that the cut in grants would be made as per decision of the US government as per overall reduction in aid and grants to various countries including Pakistan. Egypt and Pakistan, being major recipients of such aid would the affected largely.
Though the overall reduction in the aid was announced by Trump administration in May this year, the implementation on the same may be fast in the case of Pakistan following the recently announced new integrated strategy of the US towards South Asia.
Besides, President Trump’s proposed budget for the 2018 fiscal year also includes cuts in funding for USAID and developmental assistance programmes. The budget plan would decrease US funding by more than eleven billion dollars, almost 30 percent.
Ministry of Finance and Commerce have reportedly informed Prime Minister Abbasi about the US’s decision and its possible implications on the ongoing development projects. “We don’t know what will be the fate of other social sector development grants but one thing is almost clear that the US is going to cut the USAID fund to Pakistan,” said an official source.
Under the development programmes of the USAID, at least $ 650 million have so far been released out from the committed $1.5 billion fund, sources said, adding that at least 23 projects were presently completed in different sectors, including education, health, energy, economic growth, good governance, earthquake reconstruction, and flood relief and recovery.
“Under the condition of this US civilian aid to Pakistan, the expenditures made in selected projects are reimbursed by the USAID after their successful completion,” said the sources. Only small projects like repair/ capacity building of plant, machinery, rehabilitation, training of employees etc are mostly completed through the foreign fund, they added.
It may recall here that the Kerry Luger Bill passed in 2009 after democratic elections in Pakistan had proposed $1.5 billion in annual assistance to Pakistan. However, due to problems and differences in the bilateral relationship over issues such as drones, India, and the Raymond Davis incident, the full amount was not transferred.
According to a report of the US embassy in Islamabad, USAID is executing a number of projects in various parts of the country and AJK having its offices in Islamabad, Lahore, Peshawar, and AJK. The US government, through USAID, has spent huge money in the energy sector and added 1700MW electricity to the national grid. The USAID economic growth programme helped to secure a self-sustaining future for Pakistan by increasing income and employment, nurturing competitive enterprises and regional trade, and creating more rewarding business opportunities, especially for women.
USAID has also financed irrigation of more than 370,000 acres of farmland in Pakistan, which has increased the incomes of more than 800,000 farmers. The USAID has also addressed community needs and priorities in focus areas and worked with the government partners to deliver 1,413 drinking water systems, improve irrigation for more than 500,000 acres, built 119-km of flood or retaining walls and rehabilitated 318 schools, the report said.
In the education sector, the USAID also rehabilitated more than 600 schools serving an estimated 86,000 children. In addition, USAID is also constructing 16 state-of-art faculty education buildings throughout Pakistan. The United States also supported the development of university degree programmes for future teachers, benefiting more than 10,000 teachers and school administrators, the report claimed.
