$1.5 billion of civilian aid promised to Pakistan this year by the US is a sham. Only $300 - $500 million of this will be spent this year and the rest of $1.0-1.2 billion will be returned to the United States Treasury.
The problem: Americans don't have the capacity to spend money that fast. According to American appropriation rules it's a use it or loose it deal. If the allocated money is not spent it gets returned to the US treasury. Unfortunately, the Pakistani leadership sold out for too little. They fell for the American headline promise of $7.5bn which even before the bill was passed most experts knew full well will never be delivered.
According to the Congressional Budget Office's (CBO) assessment last summer of the original draft of the Kerry Lugar Bill only $300 million out of the $1.5 billion (20%) appropriated for Pakistan will actually be delivered to Pakistan this year. [the board will not let me post a link but google: s.962 cbo cost estimate]
Dawn highlighted this in the following article where US officials have indicated that at best Pakistan can expect $500 million. [can't post a link google: DAWN Lack of coordination delaying Kerry-Lugar funds]
I think Pakistani media should start highlighting this betrayal. Pakistani Government has greater capacity limitations that the United States Government. Pakistani's have probably not kept all their promises to the United States in this quid pro quo arrangement. But making a promise of this proportion and then not delivering on it weakens Pakistan's capacity significantly and makes the United states look just as bad as the Pakistanis.
The problem: Americans don't have the capacity to spend money that fast. According to American appropriation rules it's a use it or loose it deal. If the allocated money is not spent it gets returned to the US treasury. Unfortunately, the Pakistani leadership sold out for too little. They fell for the American headline promise of $7.5bn which even before the bill was passed most experts knew full well will never be delivered.
According to the Congressional Budget Office's (CBO) assessment last summer of the original draft of the Kerry Lugar Bill only $300 million out of the $1.5 billion (20%) appropriated for Pakistan will actually be delivered to Pakistan this year. [the board will not let me post a link but google: s.962 cbo cost estimate]
Dawn highlighted this in the following article where US officials have indicated that at best Pakistan can expect $500 million. [can't post a link google: DAWN Lack of coordination delaying Kerry-Lugar funds]
I think Pakistani media should start highlighting this betrayal. Pakistani Government has greater capacity limitations that the United States Government. Pakistani's have probably not kept all their promises to the United States in this quid pro quo arrangement. But making a promise of this proportion and then not delivering on it weakens Pakistan's capacity significantly and makes the United states look just as bad as the Pakistanis.