Economy facing serious challenges, US told

The US has expressed the desire to help Pakistan arrange funds for construction of multi-billion dollar Diamer Basha Dam to meet its energy requirements, it is reliably learnt. Sources said the issue of energy crisis as well as options to meet the future needs of the country came under discussion during a meeting between Finance Minister Dr Abdul Hafeez Sheikh and visiting US Deputy Secretary of State Thomas Nides, who called on the minister Wednesday.
The Deputy Secretary of State has reportedly stated that the US is ready to help Pakistan in energy sector as well conveyed concerns regarding IP gas pipeline. Finance Minister Dr Abdul Hafeez Sheikh gave the visiting Secretary of State an overview of Pakistan''s economy and the challenges as a result of global recession along with severe energy crisis in the country. Hafeez Sheikh said Pak economy is facing serious challenges due to rising oil prices in the international market and contraction of global economy. The minister also raised the issue of outstanding amount on account of Coalition Support Fund (CSF) and how critical it is for the country to contain the fiscal deficit for the outgoing fiscal year.
Hafeez said Pakistan and the US relationship has been in strain for quite some time but good relations are important for both sides. The two sides are working together to overcome these difficulties and start a new chapter. "We are looking forward to long-term sustainable relationship with the US based on mutual respect and our parliament is discussing this very important issue and will guide us in determining the future course of our relationship," he said.
Hafeez said both Pakistan and the US are looking forward to create opportunities for more public private partnership and the relationship regarding investment, business and trade. Both sides, discussed a range of bilateral relationship, assistance designed by the US government and Congress to promote programme in energy, food security and economic growth but the future course of this and other programmes will be based on the proceedings within the Parliament. "We would like to work together to realise the potential in this relationship and promoting partnership, getting access to the trade market and developing potential of business to collaborate."
Thomas Nides said it is a critical time between US and Pakistan and both sides are engaged in discussion about the future of the very important bilateral relationship. He said that his country is committed to relationship with Pakistan and is holding on-going parliamentary process in high esteem.
He said the US provided over $2.6 billion in civilian assistance to Pakistan since October 2009 including $800 million in emergency assistance in the wake of flood and conflict. He said the US is aware of Pakistan''s significant energy need and is collaborating with the authorities to fund work on Tarbela Dam and other major projects.