$4 billion has been budgeted as foreign aid

The government has budgeted for around $4 billion economic assistance from multilateral and bilateral sources for 2010-11, including the 1.5 billion dollars under the Kerry Lugar bill, 2.2 billion dollars less than what was optimistically budgeted for 2009-10, Business Recorder has learnt.
The government will raise $500 million by floating bonds during the coming financial year. Sources said that the government expects to receive over one billion dollars from FoDP--around half of 2.2 billion dollars budgeted for 2009-10. The government has also, reportedly, revised the target of economic assistance downwards: from $6.2 to $5 billion for the current financial year. The main reason for the shortfall is on account of poor disbursement from FoDP and failure to float bonds worth $500 million in the international market.
"Now the government expects to receive $1.2649 billion from FoDP till June 30, 2010 against the budgetary estimate of $2.2 billion," sources said, adding that the government had hoped to receive $406.7 million from FoDP in the third quarter (January-March), but received only $174 million from the US.
The FoDP had pledged $5.7 billion at Tokyo Conference held in April, 2009 under a two-year programme. "Now the government will receive a little over $2 billion during the two years," sources said. The government has reduced the size of Public Sector Development Programme (PSDP) for ongoing financial year from Rs 406 billion to Rs 235 billion mainly because of increased expenditures on the war on terror, failure to eliminate subsidies on energy as planned, and non-materialisation of FoDP pledges.