Flood-hit people: US will provide $190 million for Damage Compensation Fund

The US will provide $190 million for Damage Compensation Fund (DCF) to Pakistan set up for flood affected people. After the signing ceremony with Finance Minister Dr Abdul Hafeez Sheikh here on Thursday, Acting Special Representative to Afghanistan and Pakistan Frank Ruggiero said that money would be provided from the Kerry-Lugar Berman (KLB) assistance.
He asked Pakistan to put in place a mechanism, as was agreed during the Pakistan Development Forum with World Bank and other donors, to ensure transparency and accountability in the utilisation of funds. Ruggiero said that the amount for which the agreement is being signed was committed by late Richard Halbrook. He said that US would also help in reconstruction and rehabilitation phase as it did during the rescue and relief operation after the floods.
He said that $190 million is part of 500 million dollar pledged by his country for rehabilitation and reconstruction phase of flood victims. Pakistan will get soon $190 million, he said. Finance Minister Dr Abdul Hafeez Sheikh said that Pakistan and the US have long history of economic partnership that was further cemented after the approval of KLB. He said after the signing of Kerry Lugar legislation, the two countries are co-operating with each other in many areas, including agriculture, social sector, governance etc. The flood affected people are also being helped through this legislation. The Minister said US $190 million would be distributed among the flood victims through Watan Cards.
A statement given to media, after the signing ceremony, stated that Frank Ruggiero announced the US plan to contribute $190 million to the Government of Pakistan for Citizen Damage Compensation Fund (CDCF). He said the contribution demonstrates the commitment of the United States to a comprehensive, long-term partnership with the people and government of Pakistan.
The Government of Pakistan established the CDCF to provide cash grants to approximately 1.6 million families in flood-affected areas. The CDCF consists of an initial cash grant of Rs 20,000 (about $235) to each eligible family. Nearly 1.3 million families have already received the initial 20,000 rupee cash grant, and further instalments are being planned.
The $190 million contribution will come from funds authorised by the Kerry-Lugar-Berman legislation. The United States will continue to provide assistance with recovery and reconstruction to help Pakistanis rebuild their lives, Ruggiero said. "We believe this fund is directly benefiting flood-affected families in their time of greatest need", he added.
In response to the humanitarian crisis caused by the flood, the US responded quickly and generously. To date, in addition to military airlift support in the immediate aftermath of the disaster, the US government has provided nearly $600 million in assistance, directly helping millions of Pakistanis with shelter, food, clean water, agricultural assistance, and health care, the statement concluded.