ISLAMABAD: The government received $13.2 billion foreign economic assistance - $10.5 billion loans and $2.7 billion grants – over the last five years, caretaker Finance and Economic Affairs Minister Dr Salman Shah told the Senate on Wednesday.

In a written reply to questions, he said $4.824 billion was disbursed for balance of payment, $ 1.085 billion for earthquake rehabilitation, $9.3 million for food, $ 3.114 billion for different projects, $689.8 million for short term credit and $ 844.4 million was paid to the International Monitory Fund (IMF).

Details of donors and their loans: International Development Assistance (IDA) gave Pakistan a loan of $3.212 billion, Asian Development Bank (ADB) $ 3.212 billion, China $543.5 million, Japan $521.3 million, Kuwait $41.2 million, Saudi Arabia $20.8 million, Austria $19.1 million, France $56.1 million, Germany $109.7 million, Spain $1.9 million, UK $9 million, European Investment Bank $59.7 million, International Bank for Reconstruction and Development (World Bank) $567 million, International Fund for Agriculture Development $293.3 million, OPEC Fund $18.2 million, Islamic Development Bank $689.8 million and IMF $844.3 million.

Major grants: The US granted Pakistan $1.064 billion, UK $415.3 million, European Union $114.0 million, Afghanistan $.5 million, Algeria $1 million, Austria $.1 million, Australia $1.5 million, China $53 million, Pak-Turk Foundation $350 million, Turkey $350 million, Canada $22.9 million, Germany $85.3 million, Japan $160.4 million, Netherlands $25.2 million, UNDP $50.9 million, UNHCR $18.2 million and WFP $44.5 million.

Loans written off and rescheduled: Shah told the Senate $528.713 million foreign loan was written off over the last three years while $185.559 million loan was rescheduled.

The US wrote off $495.380 million loan on July 16, 2004, and the UK $33.333 million on September 16 the same year. Russia rescheduled $126.959 million loan on April 16, 2005, China $3.441 million on September 23 the same year and UAE has rescheduled $55.159 million.

Foreign investment: The minister told the Senate foreign investment amounted to $ $2.135 billion in 2004-05, $ 4.485 billion in 2005-06 and $8.416 million in 2006-07. Last year, said the minister, $545.1 million foreign investment was made in oil and gas sector, $930.3 million in financial services, $59.4 million in textile, $172.1 million in trade, $157.1 million in construction, $193.4 million in power, $46.1 million in chemical, $30.2 million in transport, $1.898 billion in communication and $1.092 billion in other sectors.

Clerics and family planning: The caretaker minister for population and welfare said his ministry had trained 18,664 clerics to promote family planning, adding 3,179 clerics were given two-day training in 2005-06, 8,289 in 2006-07, 5,336 by December 2007. In addition, 1,555 female scholars were given one-day training on family planning.

The minister said none of the trained clerics had yet been engaged in the fieldwork.


Daily Times

Those billions given from the US are mainly reimbursements so I'm not sure if that would count as assistance...

I dont know why people include the money USA pays to Pakistan for deploying the army and their expenses as aid. After the war, when USA insisted that Pakistan deploy its troops, Pakistan said; Look we will if you pay for the expenses such as fuel and etc. USA agreed and pays for the services. Please do not include that amount in aid as Pakistan do no benefit from that reimbursed amount.

The actual aid is $3 billion spread over 5 years and equally divided between economic and military assistance.

Other then that was a one time loan wrtie off and few used toys for free which the USA didnt need anymore on condition that Pakistan pays for thier upgrades and thus, more jobs for USA labour.

I found the grant of $.5 million by Afghanistan as funny. Please someone shed some light on it.

Also, there is a typo in Foreign investment. The amount should be $8.416 billion and not million. (Talk about Pakistani media)

and please distinguish between a LOAN and an AID/GRANT and FOREIGN INVESTMENT. The loan is the amount which we have to pay back whether we like it or not !! Only the grant is free which is less then $2 billion during the past 5 years !!

Economic aid is also attached with a lot of strings...i.e. spend the money back into the U.S.

As for the Afghan grant of $500k...I believe it was their part for Earthquake relief in 2005-2006.

This is a good example of a BS article. which only shows half the picture

While pakistan might have recieved $13.2 bn in foreign assistance this has to be wieghted against the $18.6 that was repaid in interest and principal on foriegn debt in the last 5 years.

(as a loan is some how considered as foreign assistance maybe we should also consider the repayment of these loans as also being foreign assistance, so a better title for this article should maybe have been "Pakistan has provided $18.6 in foriegn asssistance in the last 5 years")

http://www.sbp.org.pk/ecodata/pakdebtsvr.pdf
http://www.sbp.org.pk/ecodata/pakdebtsvr_arch.xls

Total debt servicing (interest + principal)

2006-07 - $3 billion
2005-06 - $3.1 billion
2004-05 - $3 billion
2003-04 - $5.2 billion
2002-03 - $4.3 billion

Please check out my analysis of Pakistan debt situation which show in stark contrast the performance of Musharraf government against the BB and NS era,

Musharraf era increase in debt $6 billion, GDP increased by $90 billion

BB and NS era increase in debt $12 billion, GDP increased by $18 billion

http://pakistanidefenceforum.com//index.php?showtopic=73006

living on handouts isnt the way forward no matter how much we get, our countrys goverment is hijacked and being used by outsiders for thier personal benifit there isnt a price for that

Total debt servicing (interest + principal)

2006-07 - $3 billion
2005-06 - $3.1 billion
2004-05 - $3 billion
2003-04 - $5.2 billion
2002-03 - $4.3 billion

Please check out my analysis of Pakistan debt situation which show in stark contrast the performance of Musharraf government against the BB and NS era,

Musharraf era increase in debt $6 billion, GDP increased by $90 billion

BB and NS era increase in debt $12 billion, GDP increased by $18 billion

http://pakistanidefenceforum.com//index.php?showtopic=73006

Smegster .. excellent point .. yes we talk about the money which was saved but never point out the debt servicing payment which Musharaff govt. did in the last 5 - 8 years ... !

Wow ...

So next time when i get a loan from the bank i can simple say hey its aid and i dont have to pay back.

well thats what i understand from the author maybe thats the policy he follows and than calims all the loans are aid. Prehaps he needs to be given some financial knowldege to work out the different between AID and Loans... Its pathetic we have such reports and such reports and even more pathetic is the fact that it is being published by man orgaistaions.

I sometime wishh we chuck in the jail, they not only give misinformation but also cause other problesm thorugh it.