WASHINGTON: US Secretary of State Hillary Clinton has urged wealthy Pakistanis to pay a larger share of taxes to reduce their country’s dependence on foreign aid.
In a testimony before the Senate Foreign Relations Committee, the top US diplomat reminded rich Pakistanis that they had a duty to enable their government to fund schools and hospitals and to spend more on other social projects by paying taxes.
“The very well-off” in Pakistan “do not pay their fair share for the services that are needed, in health and education primarily,” she observed.
Secretary Clinton said the US, along with the International Monetary Fund and the World Bank, was looking for ways to pressure nations that received loans and grants to broaden their tax base.
US spending on Pakistan, she said, were designed to promote political stability, weaken terrorist elements and help the war effort in neighbouring Afghanistan.
Mrs Clinton said the US, which last year approved a non-military annual aid package of $1.5 billion for Pakistan for five years, was also trying to boost trade and other investment opportunities in that country.
She appreciated the recent steps taken by the Pakistani government to help revive the ailing economy and noted that the Obama administration had committed to some large energy projects in Pakistan.
Such projects, she said, would enable Pakistan to overcome some of its major economic challenges by “keeping the power on and keeping those factories humming”.
The Obama administration, she noted, had “ordered a redirection of our aid so that we produce results that are in line with the needs and aspirations of the Pakistani people”. Meanwhile, documents produced before the US Congress show that since Sept 11, 2001, Pakistan has received nearly $18 billion of aid from the United States, including $11.5 billion in military assistance.
A Congressional compilation of the US aid to Pakistan showed that Islamabad received $6 billion in civilian aid after the Sept 11 attacks.
The Obama administration, in its latest annual budget, has proposed $1.6 billion in military assistance and about $1.4 billion as civilian assistance to Pakistan. This takes the total US aid to Pakistan to more than $20.7 billion post 9/11.
Of the military assistance, the maximum amount of $7.345 billion has come from the Coalition Support Fund, which Islamabad does not consider foreign assistance as this is reimbursement for its efforts to combat militants along the Afghan border.
This is followed by $2.164 billion in foreign military assistance. After coming to power, the Obama administration has so far provided $1.1 billion ($400 million in 2009 and $700 million in 2010) for Pakistan from the Counter-Insurgency Fund/Counter-Insurgency Capability Fund.
For the year 2011, the Obama administration has proposed $1.2 billion for Pakistan under this category.
Non-military assistance to Pakistan has increased considerably since last year, mainly because of the Kerry-Lugar-Berman bill.
Post 9/11, Pakistan has received $6 billion as civilian assistance, most of which — $4.7 billion — comes from the Economic Support Fund. For the year 2011, the US administration has proposed $1.322 billion as economic support to Pakistan.
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