[US Congress] House panel cuts foreign aid, UN and military aid to Pakistan

House panel cuts foreign aid, UN and military aid to Pakistan

By Associated Press

WASHINGTON — A House panel on Wednesday moved to cut the foreign aid budget by some 9 percent, targeting economic aid and contributions to the United Nations and the World Bank.

Despite the cuts, the legislation won bipartisan backing from the Appropriations foreign aid panel, though it’s sure to draw a White House veto threat because it’s in line with a broader GOP spending plan that breaks faith with last summer’s budget and debt pact with President Barack Obama.

The panel maintains aid to Israel and Egypt at the administration’s requests but denies $800 million that was requested for a special fund for training and equipping Pakistan’s military in counterinsurgency tactics. The move appears to reflect wariness on the part of lawmakers toward the government of Pakistan, which failed to find Osama bin Laden for years until the U.S. military killed him a year ago.

Rep. Jesse Jackson Jr., D-Ill., accused Pakistan of “harboring a fugitive” and likened the U.S.-Pakistan relationship to a “bad marriage.”

Given the animosity toward Pakistan, the $800 million request for counterinsurgency efforts was an easy target, though the measure would permit transfers from other accounts to make up for some or all of the shortfall. …

Read more » The Washington Post

Via – Wichaar.com

Secular Sindhi Sufi (mystic) poet of peace, Shah Abdul Latif

When the world was still to be born
When Adam was still to receive his form
Then my relationship began
When I heard the Lord’s Voice
A voice sweet and clear
I said “Yes” with all my heart
And Formed a bond with the land (Sindh) I love
When all of us were one, My bond then began.
– Secular Sufi (mystic) poet of peace, Shah Abdul Latif ( 1689 – 1752 )

What a lier! Gen. Beg blames IsI for poll rigging

Asghar Khan petition: Gen Beg blames ISI for poll rigging

By Azam Khan

ISLAMABAD: Former army chief Gen Mirza Aslam Beg has blamed the Inter-Services Intelligence (ISI) for distributing money among various politicians to rig the 1990 elections as alleged in air marshal Asghar Khan’s petition.

Maintaining his innocence, Beg submitted another statement before the Supreme Court, in which he claimed that the ISI was a separate entity from the army and was not under the command of the army chief.

Beg insisted he was not directly involved in maintaining accounts and distributing funds during 1990 elections. “…In fact, the accounts were maintained by the ISI and (Beg) only instructed then DG ISI Gen (retd) Asad Durrani to maintain accounts ….

Read more » The Express Tribune

Pakistan is defaulting on sovereign debt

Power sector dues: Govt defaults on sovereign guarantees

By Shahbaz Rana

ISLAMABAD: Failure to honour its financial commitments to Independent Power Producers (IPP) has led to the first-ever sovereign default by the government in Pakistan’s history.

The default on sovereign guarantees – assurances the government provides to foreign investors – may not only unnerve the financial markets, but also downgrade the government’s creditworthiness, making it more expensive to borrow money.

“Today, the government of Pakistan has committed a sovereign default for the first time in the history of the country”, announced the IPPs Advisory Committee here on Tuesday.

“The government has defaulted on payments of roughly Rs45 billion to nine IPPs that generate 1,700 megawatts of electricity”, said Abdullah Yusuf, Chairman IPP Advisory Committee while talking to The Express Tribune. These nine IPPs started operations in 2004 and their total receivables amount to almost Rs232 billion.

Taking legal course

The IPPs gave a 30-day payment notice to the power purchaser, the Central Power Purchasing Agency (CPPA), followed by a 10-day notice to the government. Neither the CPPA nor the government cleared the overdue amounts, said the advisory committee.

The IPPs have exhausted all avenues available and the notice served to the government expired on Tuesday, the committee said.

After the default, the IPPs have issued a legal notice to the government for recovery by Thursday, May 10th, 2012 failing which the IPPs will follow a legal course.

Yusuf said the IPPs will go to the Pakistani courts.

“The default is a very serious matter and carries negative implications for the country”, Yusuf added. ….

Read more » The Express Tribune