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US plans $ 700m Pakistan package

IRNA - Islamic Republic News Agency

Islamabad, April 11, IRNA -- The US administration is increasing its 
financial assistance to Pakistan during the next fiscal year, as it 
has proposed a package of US dollar 700 million for Islamabad. 
Press reports said Sunday that the proposed package, which is 
presented before the Senate, is dollar 100 million more that what 
the United States had agreed to give under the Camp David agreement 
for Pakistan. 
Even during the Afghan war, Islamabad did not get such a large 
financial assistance in a single year, observers said. 
Earlier reports said that Pakistan will get a record fund 
allocation of $ 700 million from the United States for financial year 
2004-5. 
The amount is part of the five-year aid package that totals $ 3 
billion - halved in defence and economic support assistance, reports 
from Washington suggested. 
The US Administration has suggested a record fund allocation of 
over 700 million dollars for Pakistan for the US budgetary year 
2005, Pak sources announced. 
It is higher than the previous fund allocation for the current 
year, which amounted to 395 million dollars, of which figure, half was
utilized in debt repayments saving on the debt interest amount. 
"This is despite the fact that there was immense opposition from 
Indian lobby and others, who tried to bring about different enactments
in a bid to halt the proposed earmarkings," officials said. 
Out of $700, the allocations are $300 in economic support fund, 
$300 for foreign military financing, and remaining $100 for other 
areas including allocations for child health development assistance, 
anti-terrorism, border security and training, support for narcotics 
control, reports said. 
Pakistan has reportedly utilized the $200 million for economic 
support fund for repayment of its debt. "It helped in writing off of 
almost $500 million debt to the US," the same officials added. 
Pakistan`s foreign debt and liabilities total $35 billion, of 
which $33 billion is debt, according to local sources. 
The $3 billion package was announced by US President George W 
Bush at Camp David in a meeting with President of Pakistan General 
Pervez Musharraf on June 24, 2003. 
Based on the agreement, $600 million will be disbursed each year 
- half of the amount being for defence equipment purchases and 
remaining half for economic development. 
Bush signed and submitted to the Congress the budgetary 
allocations last February. 
TSH/216 
End