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Nov 7, 2007 

NIS Bulletin - Netherlands Freezes Aid to Pakistan - will the US follow suit?

For the complete report from NIS click on this link

Netherlands Freezes Aid to Pakistan

Development Cooperation Minister Bert Koenders is suspending his aid to Pakistan. His step is prompted by President Musharraf's decision to call a state of emergency and suspend the constitution. The Netherlands has spent 15 million euros this year on Pakistan, and has budgeted 40 million for 2008. The bulk of that money, about 30 million, is available for educational program's. The rest was available for the environment and water management, human rights and democratisation. Koenders will now review this sum of 40 million euros afresh - but is continuing support for non-government organisations.

"It is a dramatic seizure of power," declared Koenders yesterday on Radio 1. He said it was horrifying that the Pakistani opposition, the judiciary, human rights organisations and journalists have been arrested.

Note EU-Digest: When will the US follow the lead of the Netherlands and suspend all financial aid to Pakistan? The United States has provided Pakistan with $10.59 billion in military, economic and development aid since Sept. 11, 2001. A breakdown of the assistance: The majority, about 60 percent, has gone toward "Coalition Support Funds," intended to reimburse the Pakistani military for their assistance in combating terrorism. The U.S. government considers it repayment rather than aid. About 15 percent, nearly $1.6 billion, is for security assistance. The Pakistanis have spent the majority of this money on purchases of major weapons systems. Another 15 percent is for general budget support for the Pakistani government. Only 10 percent was allocated for development or humanitarian assistance, including the U.S. response to the October 2005 earthquake.

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