U.S. aid program resumes operations in Pakistan

0 Comments | Asian Political News, July 22, 2002

ISLAMABAD, July 17 Kyodo

The U.S. Agency for International Development (USAID) will provide $525 million to Pakistan over the next two years for budgetary support, social sector development and strengthening democratic institutions, a USAID official in charge of the operation said Wednesday.

Mark Ward, who recently opened USAID's office in Pakistan after an absence of nearly eight years, told a press conference that $200 million per year would be provided to the Pakistani government for budgetary support during the next two years.

Over the same period, $25 million will be provided as project aid, while $50 million will be given in each of the next two fiscal years for a development program focusing on education, health care and strengthening democratic institutions.

The United States suspended its economic assistance and military sales program to Pakistan in 1990. USAID closed its mission in Pakistan in 1994 after all the projects in the pipeline were completed.

However, in the wake of the Sept. 11 terror attacks and the Pakistani government's strong support for the U.S.-led war on terror, Washington removed sanctions on economic assistance to Pakistan. USAID announced plans to reopen its mission in Pakistan shortly thereafter.