US provides $200 million support to PSDP

The United States would provide another instalment of 200 million dollars (Rs 12.4 billion) as direct budget support to Pakistan''s federal Public Sector Development Programme (PSDP) for the 2007-08 financial year.
An agreement was signed here on Friday by Minister of State for Economic Affairs Hina Rabbani Khar, Secretary for Economic Affairs M. Akram Malik and US Charge d''Affaires Peter W. Bodde and United States Agency for International Development (USAID) mission Director Anne Aarnes on behalf of their respective governments.
The budget support was in addition to financial support provided to other social sectors and the agreement was for the third of five annual 200 million-dollar instalments of US economic assistance over five years (2005-09) to support Pakistan''s investment in human capital.
Based on Pakistan''s current budget, this assistance will provide Rs 3.9 billion for education, rupees four billion for health, Rs 1.3 billion for clean drinking water and Rs 3.1 billion for earthquake affected areas'' reconstruction in coming years.
Speaking on the occasion, Hina Rabbani said the amount would be used to fund health, education, water and sanitation programmes. Besides, it would be utilised in the Federal government''s budget and for rebuilding efforts of communities devastated by the October 2005 earthquake.
Hina Rabbani appreciated the budgetary assistance, and said the US was the strong partner of Pakistan in bilateral assistance. Commenting on the economy of the country, she said Pakistan''s economy had come a long way sustaining economic growth, adding that the budget of the current fiscal year was reflective of this fact.
She said the education funds would be allocated to social sector projects, adding that health funds would be utilised to fight HIV/AIDs and tuberculosis, provide assistance to family planning and reproductive health, maternal and child health, while clean water assistance would benefit people throughout Pakistan.
She said 50 million dollars (Rs 3.1 billion) had been earmarked under the Landless Compensations Policy for October 2005 earthquake affected areas for purchase of land and construction of houses for 24,000 households, adding that one million-dollar (Rs 62.15 million) would be allocated towards a Trust Fund.
Speaking on the occasion, W. Bodde said the US government was proud of working with the government of Pakistan in improving the living standards of its citizens.
"Providing improved health services, creating economic and educational opportunities, supporting better governance and ensuring basic human security for all Pakistanis is fundamental in building a solid, sustainable foundation for Pakistan''s continued development," Bodde added.
He said that 2007 financial year''s economic support funds would help the government of Pakistan to meet the needs of its people by increasing its investment in education, healthcare, clean drinking water and earthquake reconstruction.