Lead up to Pakistan's Donor Conference on April 17th

Lead up to Pakistan’s Donor Conference on April 17th

Posted by huntingnasrallah on April 11, 2009

http://www.dailytimes.com.pk/default.asp?page=2009%5C04%5C10%5Cstory_10-4-2009_pg7_6
No credible evidence of Al Qaeda presence in Pakistan, says FO

* Spokesman says Pak embassy in London gathering details regarding arrests of certain Pakistani nationals in Britain

By Sajjad Malik

ISLAMABAD: Pakistan has not received any credible intelligence report about the presence of Al Qaeda leadership inside its borders, Foreign Office (FO) spokesman Abdul Basit said on Thursday.

“We have not come across any authentic intelligence which would indicate that Al Qaeda leadership is in Pakistan, and we do not attach importance to speculations,” Basit said in a weekly briefing.

He said the United States drone attacks might have achieved certain tactical gains but they were largely counterproductive and in violation of Pakistan’s sovereignty. “We cannot condone these attacks,” he said.

Basit said the next Pak-Afghan-US meeting would be held in Washington in May and Pakistan would raise the issue of drone attacks again.

Approach: The FO spokesman said Islamabad had differences with Washington over certain issues, including the drone attacks, but the two sides agreed on a holistic and comprehensive approach to address regional problems.

Gathering details: He said Pakistan’s High Commission in London was gathering details regarding the arrests of certain Pakistani nationals in Britain.

Basist said draft legislation had already been moved in the US Congress and Pakistan hoped that the Congress would pass both the Kerry-Lugar Bill and the reconstruction opportunity zones legislation by June.

He said President Asif Ali Zardari would visit Japan on April 15-17 and would hold meetings with the Japanese leadership on April 16 and chair a Friends of Democratic Pakistan ministerial meeting on April 17, adding that the president would also attend the inaugural session of the Donors’ Conference.

The FO spokesman said Islamabad was closely following developments following a missile launch by North Korea on April 5.

“Pakistan will continue supporting efforts towards peace and stability on the Korean peninsula,” he said.

http://www.geo.tv/4-5-2009/39141.htm

GEO Pakistan
Mullen, Holbrooke to visit Pakistan tomorrow
Updated at: 2203 PST, Sunday, April 05, 2009
ISLAMABAD: US special envoy to Pakistan and Afghanistan Richard Holbrooke and US Joint Chiefs of Staff Chairman Admiral Mike Mullen will visit Pakistan on April 6.

The two would meet Pakistan’s political and military leadership following the announcement of a new US regional policy by President Barack Obama.

Several important decisions are expected to be made during the American officials’ visit.
http://www.aaj.tv/news/Business/132692_7detail.html
Pakistan to present its nine-points agenda in FODP moot
FIDA HUSSAIN & ASMA RAZAK
ISLAMABAD ( 2009-03-31 05:03:16 ) :The present government gives highest priority to the Friends of Democratic Pakistan (FODP) conference being held this month in Japan that would help the government to inform the friends about the current problems and for the solution, of which the FODP would extend strategic partnership.

Finance Secretary Salman Siddique said this in an interview with Business Recorder here on Monday. He said that Pakistan would present its 9-points agenda to the friends in the conference. The FODP conference on April 17 will not be going to pledge anything.

However, Pakistan expects that it will get some hardcore money from the donors’ conference being held back to back the same day in Japanese capital, said Salman, who is heading to UAE along with the official delegation to participate in expert level meeting on 1st and 2nd April.

He disclosed that Pakistan needed not more than 4 to 7 billion dollars during next two fiscal years. “But it will depend on how does economy goes in next two years. It will also depend on oil prices in the international market and the inflow of remittances besides other factors,” he added. FODP is looking at the strategic location of Pakistan.

The Friends conference will not be just one event, he added. It will be a continuous process. Another conference could be held either in Pakistan or any other country as a follow up action, he added.

The FODP conference is important because it is about the strategic location of Pakistan in the region, which is presently in the eye of storm. The economic slow down is retarding Pakistan’s ability to strengthen itself against war on terror. This is the major concern for the FODP and the rest of the world.

FODP is looking at strategic partnership. How is Pakistan placed? How it intends to get out through this crisis. What is its vision for the future? We have already chalked out a 9-points agenda. These nine points will be going to be the mainstay of the presentation to the friends in Tokyo conference.

Along with that, there will also be an overview of all infrastructure and energy sector projects. If these projects fulfil the criterion of source of strength in the future, then the friends could extend their assistance for such projects, he added.

Finance secretary said that Pakistan would tell the FODP that it wanted to have a long-term relationship. “We would want to share our own vision with the Friends,” he added. We are looking at more and more co-operation from Friends. This is going to be process. The process will be refined if we go expert level, said Salman.

The FODP member countries will also sit in the donors’ conference. The assistance coming from donors will be under fiscal framework within the standby arrangement Pakistan has with International Monetary Fund (IMF), he added. We have a figure in mind. We will inform the donors that this is necessary for sustenance of fiscal framework, said the finance secretary without giving the exact amount, which Pakistan expects to be coming out at the donors’ conference.
http://www.individual.com/story.php?story=99059317
Defeat no option for Pak in terror war: FM
MULTAN, Apr 05, 2009 (Asia Pulse Data Source via COMTEX) –

Foreign Minister Makhdoom Shah Mehmood Qureshi said on Sunday that no foreign military boot will step in Pakistan and our own law enforcement agencies and paramilitary forces will conduct anti-terrorism operation inside the country. Talking to the newsmen at the local airport upon his arrival here, the Foreign Minister said that during his recent visit to Washington he conveyed clearly to the US that NATO will not be allowed to conduct operation in Pakistan adding that it is not acceptable for Pakistan. They have understood our point of view and accepted it, he added.

He said that US has introduced a bill worth US$ 10.5 billion for Pakistan including US$ 7.5 billion as economic assistance and rest of US$3 billion for military assistance.

He termed it as a success. Mentioning a statement by US President Barack Obama regarding No Blank Cheque, FM said, Pakistan will neither give any blank cheque nor will accept it.

We are a sovereign country and a self-esteemed nation of 180 million people, he said adding that US is a military and economic power but we want to negotiate with them and highlight our point of view before them on the basis of equality like a friend and ally. Foreign Minister said that defeat is not an option for Pakistan in the war against terrorism. We all agree that we cannot lose this war because the terrorists do not merely want to terrorize but they are challenging the writ of the government and want to impose their own system.

He said that US and Pakistans interests coincide in the war against terrorism but added that we are fighting the menace for our own sake. He said that there are two kind of elements in troubled parts. Firstly the irreconcilable elements, he said adding that government will not hold negotiations with them. However, talks is an option in case of reconcilable elements, he said when asked whether talks will be held with the militants like Baitullah Mehsud.

He said that the new strategy was the result of failure of previous strategy pursued over last seven years. He said that new strategy is multi-pronged as in addition to military surge it also talks about civilian surge, reconciliation, economic development and capacity enhancement.

He said that US has initiated moves for US$10.5 billion economic assistance for Pakistan and hoped more assistance will come in the wake of Friends of Democratic Pakistan (FoDP) meeting scheduled for April 17 in Tokyo.

He said that Pakistan successfully made its western allies understand its point of view and added that US President, in his address to the G20 summit, had said that while knowing we all are facing economic crisis situation we have to help Pakistan. He said that the US President also asked the EU and Nato countries that Pakistan should be extended assistance to win war on terrorism.

Foreign Minister also thanked US Secretary of State Hillary Clinton, who in her address in the Hague conference, had advocated the case of Pakistan for assistance. He said that Pakistan has prepared an assistance package detailing its requirements which will be discussed in the April 17 Tokyo meeting of FoDP which will comprise two sessions.

The second session will be the donors conference to be attended by Pakistan and World Bank. Foreign Minister urged the world to accept Pakistans status as a nuclear power and recognize it as they did in case of India. We are a responsible nuclear power and it will be appropriate that the world should recognize it, he added.

To a question on reported rocket launch for test by North Korea, he said that Pakistan was against the nuclear proliferation and will move along with the world for noble cause of peace. Foreign Minister said that Pakistan wants resumption of composite dialogue process with India and added it was a source of pleasure if friends are extending help to make it happen. He, however, added that India was engaged in elections these days and added that talks should resume once the elections are over in India.

He said that the Hague Conference was attended by Foreign Ministers of 83 countries in which new strategy of Obama administration was discussed and endorsed. He said he has been invited to visit Washington once again in May to discuss what to do next after having presented and debated the new strategy. He said that support to Pakistan was ensured in the Hague conference and its point of view of regional and holistic approach was endorsed.

He said that special US envoy to Pakistan and Afghanistan ambassador Richard Holbrooke will be visiting Pakistan on April 7. He said that modalities will be discussed on the matters that have been decided. Moreover, important issues including Quetta Shura will also come under discussions in a meeting with him at the Foreign Office during which he will present Pakistans point of view on the matter.

Foreign Minister said that Quetta Shura was not a new issue as it remained a subject for discussion during the Musharraf regime. Foreign Minister Makhdoom Shah Mehmood Qureshi said that Narcotics trade was funding extremism and terrorism and sought combined efforts of regional countries to stop this source of funding under the regional approach. He expressed grief over the incident of recovery of dead bodies from a container and stressed that human smuggling problem should be tackled through a regional approach under joint efforts by Afghanistan, Pakistan, Iran, Russia and Central Asian Republics.

He said that agents may have lured innocent people and fleeced them on the promises of lucrative jobs. Those found dead may include Uzbek, Tajik and Afghans wanted to enter Europe via Iran to end their poverty, FM said adding that its a human issue and needs to be tackled through regional cooperation.

He strongly condemned the lashing punishment to a girl in Swat saying it was against Shariah, un-Islamic, immoral, and inhuman act and the government, the civil society, media and intellectuals have strongly condemned it. The issue has been taken up at the highest level, FM said adding that government has ordered an inquiry while Chief Justice Supreme Court has also taken notice of it.

He said that a three-member panel of UN will soon meet to prepare modalities for investigations into the assassination of martyred PPP leader Mohtarma Benazir Bhutto and added that investigations would conclude within a specific time frame.

He said that during the Shanghai Cooperation Organization (SCO) Conference in Moscow, he met with the Russian Foreign Minister and invited him to join the Friends of Democratic Pakistan (FoDP) meeting in Tokyo. They are considering it seriously, FM said adding that Russia has endorsed Pakistans point of view regarding regional and holistic approach to counter terrorism. He said that Pakistan will provide conducive environment for Russian investment and efforts will be made to find what incentives can be offered to include Russia in our economic activity in sectors like energy, defence and others.

Makhdoom Shah Mehmood Qureshi said that a unique trilateral summit was held in Ankara, Turkey. It was unique because head of the states of the three countries including Pakistan, Afghanistan and Turkey besides their Foreign Ministers, Army Chiefs, and Intelligence chiefs attended the summit to address regional issues. It has been decided that this trilateral summit will be held each year and joint working groups have been formed with the task to prepare agenda for the annual summit.

He expressed delight over the release of UNHCR representative John Solecki saying that our two month long efforts have resulted in success. The UNHCR representative will be leaving for his home today. Foreign Minister condemned Chakwal blast incident and said that terrorism is a serious challenge. He stressed on enhancing capacity of security apparatus to combat terrorism successfully. He added that joint resolve and solidarity was a must to root out terrorism before it spreads like cancer.

http://www.riazhaq.com/2009/04/pakistan-pursues-several-new.html?showComment=1238909820000
Saturday, April 4, 2009
Pakistan Pursues Hydroelectric Projects
Pakistan and Germany have initiated serious discussions of German funding of eight ongoing and new hydropower projects worth billions of dollars. These talks are taking place in Islamabad between visiting German Minister for Economic Co-operation and Development Ms. Heidemaire Wiegoreak Zeul and Pakistani Prime Minister’s Adviser on Finance Mr. Shaukat Tarin, according Business Recorder newspaper.

The projects currently under discussion include 621 MW Palas hydropower project, 567 MW Spat Gah hydropower project, 28 MW Basho hydropower project, 33 MW Harpo hydropower project, 70 MW Lawi hydropower project, Naigaj hydropower project and 300 KW Hingol hydropower project, 43 KW Kurram Tangi Dam. As a start, the German Economic Minister said her country had already committed finances for Keyal Khwar hydropower project located in NWFP on river Indus at Dasu. The project would generate 130 MW power. The focus of many of these development projects are the rural areas in the North West Frontier Province and the least developed federally administered tribal areas of the country affected by insurgencies.

Ms. Heidemaire Wiegoreak Zeul said that Germany was part of Friends of Democratic Pakistan (FoDP) and she had come here for the assessment of the situation and development needs to be discussed at Tokyo in April 17 and then again at the end of April during the annual meeting of the World Bank and IMF. She added that this support was important for Pakistan’s development to stabilize the country and the region.

In addition to megaprojects such as 1000 MW Neelum-Jhelum hydropower project, a number of community-based micro hydro projects are being executed with the help of the Agha Khan Foundation in Pakistan’s Northern Areas and NWFP. Within this region, out of a total of 137 micro-hydro plants, the AKRSP has established 28 micro-hydros with an installed capacity of 619kW. Initially, in 1986, these plants started as research and demonstration units. These projects were extended to Village Organizations (VOs) and became participatory projects. A Village Organization (VO) is a body of villagers who have organized themselves around a common interest.

After formation, each village organization signed a partnership with AKRSP to abide by all terms and conditions necessary for the village development. The entire responsibility of implementation was passed on to the VOs. AKRSP provided the negotiated cost of the plants and technical input required during the construction period. All the VOs completed the civil work of the plants. They purchased and transported machinery from other parts of Pakistan. The VO members provided subsidized or free unskilled labour and locally produced building material.

Pakistan’s current installed capacity is around 19,845 MW, of which around 20% is hydroelectric. Much of the rest is thermal, fueled primarily by gas and oil. Per capita energy consumption of the country is estimated at 14 million Btu, which is about the same as India’s but only a fraction of other industrializing economies in the region such as Thailand and Malaysia, according to the US Dept of Energy 2006 report. To put it in perspective, the world average per capita energy use is about 65 million BTUs and the average American consumes 352 million BTUs.

The electric power situation in India is not much better. The country is suffering its worst electricity crisis and it has become a key election issue in states like Karnataka and Maharashtra. Some major cities in India are facing alarming situations; continuous load shedding in Bangalore has led to diesel shortage as people are using diesel generators to deal with the crisis. Maharashtra, Uttar Pradesh, West Bengal and Haryana are the worst hit by the ongoing crisis and they are facing power gaps of about 5,000MW, 1,000MW, 2000MW, 1,500MW respectively. In Maharashtra, state officials are asking industrial consumers to lower their demand by 10% or be ready to face forced load shedding (rolling blackouts). Cities and towns are facing 7 to 13 hours blackouts.

With 40% of the Pakistani households that have yet to receive electricity, and only 18% of the households that have access to pipeline gas, the energy sector is expected to play a critical role in economic and social development. With this growth comes higher energy consumption and stronger pressures on the country’s energy resources. At present, natural gas and oil supply the bulk (80 percent) of Pakistan’s energy needs. However, the consumption of those energy sources vastly exceeds the supply. For instance, Pakistan currently produces only 18.3 percent of the oil it consumes, fostering a dependency on expensive, imported oil that places considerable strain on the country’s financial position, creating growing budget and trade deficits. On the other hand, renewable energyfrom hydro, wind and solar are perhaps underutilized and underdeveloped today, as Pakistan has ample potential to exploit these resources.

Pakistan has vast reserves of coal. But there is very little energy produced by burning coal. China has now agreed to invest about $600 million for setting up an integrated coal mining-cum-power project in Sindh. The project will produce 180 million tons of coal per year, which is sufficient to fuel the proposed 405 MW power plant. Pakistan is currently world’s seventh largest coal-producing country, with coal reserves of more than 185 billion tons (second in the world after U.S.A.’s 247 billion tons). Almost all (99 percent) of Pakistan’s coal reserves are found in the province of Sindh. Pakistan’s largest coal field is Thar coal field which is spread over an area of 9100 square kilometers, and contains 175 billion tons of coal. So far this coal field has not been developed but efforts are underway.

In addition to the coal project, China has agreed to build several other power plants in Pakistan to help the South Asian nation deal with its worsening electricity crisis. When completed over the next several years, these plants, including Nandipur (425 MW, Thermal), Guddu(800 MW, Thermal) and Neelam-Jhelum(1000 MW, Hydro), Chashma (1200 MW, Nuclear) will add more than 3000 MW of power generating capacity for the energy-hungry country. Pakistan is currently facing a deficit of 4,000 to 5,000 megawatts, resulting in extensive load-shedding (rolling blackouts) of several hours a day.

China has already installed a 325-megawatt nuclear power plant (C1) at Chashma and is currently working on another (C2) of the same capacity that is expected to be online by 2010. The agreements for C3 and C4 have also been signed. The United States has objected to China supplying C3 and C4 on the grounds that any Pak-China nuclear cooperation would require consensus approval by the NSG, of which China is now a member, for any exception to the guidelines. The US is applying double standards since it supported and got approval for such an exception from NSG for its own nuclear deal with India.

Beyond the power generation capacity expansion projects, Pakistan must also pay attention to modernizing its national grid. The country’s creaky and outdated electricity infrastructure loses over 30 percent of generated power in transit, more than seven times the losses of a well-run system, according to the Asian Development Bank and the World Bank; and a lack of spare high-voltage grid capacity limits the transmission of power from hydroelectric plants in the north to make up for shortfalls in the south.

The current power crisis has given a significant impetus for serious efforts to develop a series of power projects. With so many projects in the pipeline, it can be expected that there is relief on the way for the electricity deprived nation in not too distant a future. In rural areas in particular, Pakistan has a better chance of meeting the UN Millennium Development Goals by building infrastructure projects and providing energy and water for development.
http://www.riazhaq.com/2008/10/un-millenium-goals-in-pakistani-village.html

Thursday, October 2, 2008
UN Millennium Goals in Pakistani Village
“We need a hospital,” one man said, “and a school for girls. If something could be done about the drinking water, we’d be grateful.”

“One day it’s diarrhea, the next day it’s fever, the next day, vomiting” said a village woman, speaking about her children.

These villagers reluctantly spoke to their feudal prince of Ratrian, a poor village in north of Pakistan, highlighted by TVE and BBC recently. The young prince is Rafeh Malik, the son of the feudal lord Malik Atta Mohammad, whose family’s vast land holdings include this village. The prince took the initiative to ask for his villagers’ opinions about what needs to be done to improve their lives.

Apparently, Prince Rafeh Malik has been influenced by the United Nations Millennial Development Goals (MDGs) and he wants to try and implement them within his domain. He has taken the initiative by convincing his father that it must be done.

Here’s a brief overview of the UN MDGs:

1 Eradicate extreme poverty and hunger
2 Achieve universal primary education
3 Promote gender equality and empower women
4 Reduce child mortality
5 Improve maternal health
6 Combat HIV/Aids, malaria, and other diseases
7 Ensure environmental sustainability
8 Develop a global partnership for development

These goals can not be achieved by governments alone. In spite of Pakistani government’s efforts and international assistance, Pakistan does not have a lot to show in terms of real progress toward UN MDGs. Ranked at 136 on a list of 177 countries, Pakistan’s human development ranking remains very low. Particularly alarming is the low primary school enrollment for girls which stands at about 30% in rural areas, where the majority of Pakistanis live. In fact, the South Asia average of primary school enrollment is pulled down by Pakistan, the only country in all of Asia and the Pacific with the lowest primary enrollment rate of 70 per cent in 2005. This is 12 percentage points lower than that of Maldives, which, at 80 per cent, has the second lowest rate in Asia and the Pacific. However, whereas Pakistan is rapidly reducing the proportion of children out of primary school – the net enrollment rate was just 60 per cent in 2003 – the rate in Maldives actually dropped 18 percentage points between 1999 and 2005.

The government effort is necessary but the real success will require active participation of private Pakistani citizens of all classes in society. People, including young, educated and enlightened feudal princes, need to come together to light candles rather than curse darkness.

The mission that Rafeh Malik has embarked on is an extremely welcome and necessary effort to change the feudal attitudes toward the poor in Pakistan. There are obviously risks and fears associated with any change. But Rafeh Malik’s work should be an inspiration to other young men and women of the feudal class in Pakistan. “I am scared,” Rafeh told his friend Shehryar Mufti, a Dawn TV journalist, “but I’m willing to take the risk.”

Let’s hope Rafeh Malik, and others like him, succeed in bringing about peaceful and positive changes in Pakistani feudal-tribal society that will ultimately benefit all Pakistanis, including the villagers, the middle class and the feudal and tribal chiefs. It has been shown in many developed nations that peaceful transitions from traditional feudal societies to modern democratic, successful, industrialized societies have brought wealth, peace and prosperity for all. The children of the feudal lords in Europe benefited from better education and lucrative business investments to remain rich and powerful, without keeping their people impoverished and illiterate. The transitions were clearly win-win situations for both the rulers and the ruled. The alternatives to peaceful transitions will be far worse for the big zamindars and sardars in Pakistan. Resistance to change by of the feudal-tribal leaders will prove dangerous and futile over the long run.
http://www.dfid.gov.uk/countries/asia/pakistan/mdgs.pdf

http://masbury.wordpress.com/2008/09/29/what-percent-of-us-budget-goes-to-foreign-aid/

http://www.cgdev.org/section/about/
About CGD
The Center for Global Development is an independent, nonprofit policy research organization that is dedicated to reducing global poverty and inequality and to making globalization work for the poor. Through a combination of research and strategic outreach, the Center actively engages policymakers and the public to influence the policies of the United States, other rich countries, and such institutions as the World Bank, the IMF, and the World Trade Organization to improve the economic and social development prospects in poor countries. CGD was recently ranked among the world’s top think tanks (number 15 out of several thousand such research organizations) in an independent survey-based ranking published in Foreign Policy magazine.

Where We Came From
CGD was founded in November 2001 by Edward W. Scott, Jr., C. Fred Bergsten and Nancy Birdsall. A technology entrepreneur, philanthropist, and former senior U.S. government official, Ed provided the vision and a significant financial committment that made the creation of the Center possible. Fred, the director of the Peterson Institute for International Economics, lent his formidable reputation in academic and policy circles as well as providing the fledgling Center with a roof and logistical support within the Peterson Institute for its initial months of operation. Nancy, a former head of the World Bank research department and executive vice president of the Inter-American Development Bank, became CGD’s first president. Her intellectual leadership and the rare combination of being both hard-headed and soft-hearted about development attracted a cadre of researchers and other professionals who are deeply dedicated to CGD’s mission.

CGD’s three founders perceived a growing need for independent research to generate practical, creative solutions to the challenges that global interdependence poses to the developing countries, starting with debt. Delivering on Debt Relief: From IMF Gold to a New Aid Architecture (CGD, 2004), by Birdsall and John Williamson, a senior fellow at the Peterson Institute, was the Center’s first book.

What We Do
Today CGD conducts research and analysis on a wide range of topics related to how rich country policies impact people in the developing world. These include:

Aid Effectiveness
Education
Globalization
Health
Migration
Trade
Research and analysis that is related to proposals for specific, practical improvements in rich country policies is organized into initiatives, such as:

Cash on Delivery: Progress-Based Aid for Education
Confronting Climate Change
Demographics and Development in the 21st Century
The Global Health Policy Research Network
The HIV/AIDS Monitor
Our Commitment to Development Index, conceived in partnership with Foreign Policy Magazine, quantifies the full range of rich country policies that have an impact on poor people in developing countries. The Index’s annual rankings have become a tool for discussions not only of aid, debt and trade, but of environmental, security, and immigration policies.

In the short time since its founding, CGD has rapidly earned a reputation as a unique “think and do” tank, where independent research is channeled into practical policy proposals that help to shape decisions in Washington and other rich country capitals.

The Center’s research and analysis have contributed to a growing recognition of the need for deeper and faster debt relief, and for more and better quality development assistance. Our trade policy research captured the world’s attention, with the oft-cited finding that liberalization could liberate from poverty 500 million people.

We have put on the global agenda proposals to use the market to develop a malaria vaccine; to allow more temporary labor migration; to sell IMF gold to write down poor countries’ debt; to give the World Bank a strong mandate for addressing global warming; and to create a club for independent evaluation of development investments.

Some proposals have already been taken up and are making a difference. Others remind us of how much more remains to be done.

http://www.cgdev.org/content/publications/detail/2852
06/15/2006
What is U.S. Development Assistance?

U.S. “development assistance” refers to the transfer of resources from the United States to developing countries and to some strategic allies. It is delivered in the form of money (via loans or grants), contributions of goods (such as food aid), and technical assistance. The U.S. gives assistance to other countries for a variety of reasons, not all of them having directly to do with development:

National security and foreign policy interests—for example, to Uzbekistan and Pakistan in exchange for use of their territory for military operations in Afghanistan
Political development and stability—for conflict prevention, to build peace after conflict, and to strengthen failing states
Humanitarian crises—to countries and people suffering famine, recovering from a natural disaster, or displaced by conflict
Long-term development purposes—to help countries fight poverty, build roads, educate children, fight health crises, create small businesses, and spur economic growth

http://www.cgdev.org/doc/commentary/speeches/AEIcomments6.8.06.pdf

http://www.nytimes.com/2009/03/27/washington/27prexy.html?_r=1&ref=asia
By PETER BAKER and THOM SHANKER
Published: March 26, 2009
WASHINGTON — President Obama plans to further bolster American forces in Afghanistan and for the first time set benchmarks for progress in fighting Al Qaeda and the Taliban there and in Pakistan, officials said Thursday.

In imposing conditions on the Afghans and Pakistanis, Mr. Obama is replicating a strategy used in Iraq two years ago both to justify a deeper American commitment and prod governments in the region to take more responsibility for quelling the insurgency and building lasting political institutions.

“The era of the blank check is over,” Mr. Obama told Congressional leaders at the White House, according to an account of the meeting provided on the condition of anonymity because it was a private session.

The new strategy, which Mr. Obama will formally announce Friday, will send 4,000 more troops to train Afghan security forces on top of the 17,000 extra combat troops that he already ordered to Afghanistan shortly after taking office, administration and Congressional officials said. But for now, Mr. Obama has decided not to send additional combat forces, they said, although military commanders at one point had requested a total of 30,000 more American troops.

Although the administration is still developing the specific benchmarks for Afghanistan and Pakistan, officials said they would be the most explicit demands ever presented to the governments in Kabul and Islamabad. In effect, Mr. Obama would be insisting that two fractured countries plagued by ancient tribal rivalries and modern geopolitical hostility find ways to work together and transform their societies.

American officials have repeatedly said that Afghanistan has to make more progress in fighting corruption, curbing the drug trade and sharing power with the regions, while they have insisted that Pakistan do more to cut ties between parts of its government and the Taliban. Mr. Obama telephoned President Hamid Karzai of Afghanistan and President Asif Ali Zardari of Pakistan on Thursday to share the main elements of the strategic review.

Setting benchmarks for Pakistan could be particularly difficult. For years, the United States has simply paid bills submitted by the Pakistani government for counterterrorism operations, even during truces when its military was not involved in counterterrorism. Pakistan has resisted linking its aid to specific performance criteria and officials acknowledged that developing those criteria could be problematic.

The key elements of Mr. Obama’s plan, with its more robust combat force, its emphasis on training, and its far-reaching goals, foreshadow an ambitious but risky and costly attempt to unify and stabilize Afghanistan and Pakistan. Mr. Obama is unveiling his approach at a time when the conflict is worsening, the lives of the people are not visibly improving, and the intervention by American-led foreign powers is increasingly resented.

The goals that Mr. Obama has settled on may be elusive and, according to some critics, even naïve. Among other things, officials said he planned to recast the Afghan war as a regional issue involving not only Pakistan but also India, Russia, China, the United Arab Emirates, Saudi Arabia and the Central Asian states.

His plan envisions persuading Pakistan to stop focusing military resources on its longstanding enemy, India, so it can concentrate more on battling insurgents in its lawless tribal regions. That goal may be especially hard to achieve given more than a half century of enmity — including a nuclear arms race — between Pakistan and India.

All told, the 21,000 additional American troops that Mr. Obama will have authorized almost precisely matches the original number of additional troops that President George W. Bush sent to Iraq two years ago, bringing the overall American deployment in Afghanistan to about 60,000. But Mr. Obama avoids calling it a “surge” and resisted sending the full reinforcements initially sought by commanders.

Instead, Mr. Obama chose to re-evaluate troop levels at a series of specific moments over the next year, officials said. Approaching the issue in increments may be easier to explain to members of Mr. Obama’s own party who fear he is getting the country as entangled in Afghanistan as Mr. Bush did in Iraq.

The officials said Mr. Obama planned to frame the American commitment as a counterterrorism mission aimed at denying havens for Al Qaeda, with three main goals — training Afghan security forces, supporting the weak central government in Kabul and securing the population. While the new strategy will call for expanding Afghan security forces more rapidly, it will not explicitly endorse the request from American commanders to increase the national police and army to 400,000.

At the same time, Mr. Obama warned Congressional leaders that he would need more than the $50 billion in his budget plan for military operations and development efforts. Asked by lawmakers about the prospect of reconciliation with moderate members of the Taliban, officials said Mr. Obama replied that he wanted to sift out hard-core radicals from those who were fighting simply to earn money.

Senator Carl Levin, Democrat of Michigan and chairman of the Armed Services Committee, emerged from a briefing with Defense Secretary Robert M. Gates to declare that in his judgment the administration’s review “was right on track.” He said the new strategy would send a significant number of additional trainers to work with the Afghan National Army and police, part of an overall strategy to “transfer responsibilities to the Afghans, both militarily and in terms of economic development.”

Mr. Levin, who was part of a bipartisan group that pressed Mr. Bush to set benchmarks for Iraq two years ago, embraced the idea of doing the same again for Afghanistan. “There is a determination to set some benchmarks for Afghanistan, and that will be incredibly important,” Mr. Levin said. “We haven’t had them in Afghanistan.”

Republicans emerging from briefings at the White House and on Capitol Hill withheld comment. Antonia Ferrier, a spokeswoman for Representative John A. Boehner of Ohio, the House Republican leader, said in a statement that he “had a constructive meeting at the White House” and that he would “reserve public comment until the president makes his formal announcement.”

Dennis C. Blair, the administration’s director of national intelligence, said the United States still lacked intelligence about the power structures inside the country and other basic information necessary for a counterinsurgency campaign. “We know a heck of a lot more about Iraq on a granular level than we know about Afghanistan,” he said.

Speaking with reporters, Mr. Blair estimated that up to three quarters of the Taliban’s rank and file in Afghanistan could be peeled away from the Taliban’s leadership, most of whom are hiding in sanctuaries across the border in Pakistan.

David E. Sanger and Mark Mazzetti contributed reporting.

http://www.thearynews.com/english/newsdetail.asp?nid=23664
Preparatory work for Friends of Democratic Pakistan
Updated : Thursday March 19 , 2009 1:54:10 AM

ISLAMABAD : President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilani jointly chaired a meeting in the Presidency to review the progress on the preparatory work for the Friends of Democratic Pakistan meeting scheduled to be held in Tokyo on April 17 in which the President will represent Pakistan.

Those who participated in the meeting besides the President and the Prime Minister included Foreign Minister Shah Mehmood Qureshi, Advisor Finance Shaukat Tarin, Secretary General Salman Farooqi, Foreign Secretary Salman Bashir and Spokesperson Farhatullah Babar.

The meeting reviewed proposals developed by Pakistan in areas of internal security, infrastructure development and poverty alleviation, which will be brought to the attention of international community. The President emphasized that in order to make the war against militancy a success it was necessary to comprehensively address the security and development issues of Pakhtoonkhwa and Balochistan provinces in the proposed package.

He said that Pakhtoonkhwah province bore the brunt of the war on terror and its developmental and security needs must be seriously addressed. He expressed the hope that the forthcoming meeting of Friends of Pakistan will view positively Pakistan’s requirements to successfully overcome the challenges posed by militancy.

The countries and international bodies included in the Friends of Pakistan group are the US, UK, China, France, Germany, Italy, Japan, Australia, Canada, Saudi Arabia, Turkey, UAE, EU, EC and UN.

The Friends of Democratic Pakistan provides a forum to friendly countries to build strategic partnership with Pakistan to foster peace and stability in the region, promote economic stability and address energy needs.

http://www.zawya.com/Story.cfm/sidWAM20081020211001062/Pakistani%20President%20praises%20UAE’s%20support%20for%20Friends%20of%20Democratic%20Pakistan%20Group/
Pakistani President praises UAE’s support for Friends of Democratic Pakistan Group
ISLAMABAD, 20th Oct. 2008 (WAM) — Pakistani President Asif Ali Zardari lauded today efforts made by the UAE to facilitate success of the debut meeting of the Friends of Democratic Pakistan which held in New York on 26th September.

The Pakistani head of state and Prime Minister Yousuf Raza Gilani on Monday jointly chaired the preliminary meeting of the core group of Friends of Democratic Pakistan. The meeting was attended by representatives from the United States, UAE, Saudi Arabia, China, the UK, Turkey, Japan, France, Germany and Australia.

Mohammed Al Shamsi, UAE Charge d’ Affaires in Pakistan, said the Pakistani president and US Assistant Secretary of State Richard Boucher paid tribute to the UAE for standing ready to host the meeting in mid-November.

Federal Minister for Information Sherry Rehman told repoters that today’s gathering was a preliminary meeting to prepare the ground for the next meeting in the UAE.

“The agenda was to define the parameters and set priorities to enable Pakistan to meet domestic and global challenges.” She said that Friends of Democratic Pakistan Group was an initiative spearheaded by the efforts of the President of Pakistan during his visit to the US last month to attend the UN General Assembly.

“The Friends of Democratic Pakistan Group symbolises the support that the new democratic Pakistan is receiving from the countries represented on the forum. The extraordinary interest expressed by the core group for the well being of our nation reflects their confidence in the leadership fo Pakistan,” the minister added as quoted by APP-Pakistan.

She said the government views Friends of Democratic Pakistan Group as a very important initiative that could serve as key to long term strategic and economic stability of the country.

“The President and the Prime Minister have reiterated their firm resolve to make this effort a success. President Zardari has said that the group will serve as a strategic setup for advancing Pakistan’s interests and the enhancing of the country’s capacity in all spheres,” Sherry said.

The minister informed that UAE will be hosting the next meeting for which dates will be set later.

“The UAE meeting will chalk out a roadmap for the contour of a more comprehensive strategy based on sharing best practices and laying strong multilateral foundations to promote the interests of Pakistan.”
© Copyright Emirates News Agency (WAM) 2008.
http://www.thefreelibrary.com/FO+briefs+heads+of+mission+of+Friends+of+Democratic+Pakistan.-a0196329219
FO briefs heads of mission of Friends of Democratic Pakistan
ISLAMABAD, 24 March , 2009 (Balochistan Times) — A briefing was held for the Heads of Mission of Friends of Democratic Pakistan (FODPFODP Fiber Optic Distribution Panel (telecommunications)
….. Click the link for more information.) countries in the Foreign Ministry Tuesday. The meeting was chaired by Foreign Secretary Salman Bashir. The representatives of World Bank, UN, UNDP, ADB(Apple Desktop Bus) A low-speed serial bus for connecting keyboards, mice and other input devices on Apple IIgs and Macintosh computers. Starting with the iMac in 1998, the ADB was superseded by USB.
….. Click the link for more information., IDB and IMF IMF

See: International Monetary Fund

——————————————————————————–

IMF

See International Monetary Fund (IMF). attended the meeting. Senator Sughra Imam, Secretaries Finance, EAD, Interior, Planning, Water & Power were also present in the meeting and briefed the envoys on Pakistans development needs and priorities, says a press release issued by the Office of Spokesman here. The President of PakistanThe President of Pakistan (Urdu: ??? ????? Sadr-e-Mamlikat) is Head of State of Pakistan. Pakistan has a semi-presidential system of government.
….. Click the link for more information., Mr. Asif Ali Zardari Asif Ali Zardari (Urdu: ??? ??? ??????) (Sindhi:??? ??? ??????) (born July 21, 1956) is the chief of the Zardari tribe and the launched the initiative of FODP in New York in September 2008. Currently, the Forum consists of twenty-five countries and multilateral institutions including US, UK, China, EU, Japan, Germany, France, Italy, Canada, Republic of Korea, Spain, the Netherlands, Nordic countries, UN, World Bank, Asian Development Bank Asian Development Bank

A financial_institution established in 1966 to reduce poverty in the Asia-Pacific region. The bank is headquartered in Manila, Philippines and consists of 61 member countries. and Islamic Development BankIslamic Development Bank (also known as IDB), is a multilateral development financing institution. located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973.
….. Click the link for more information.. The initiative demonstrates political and economic support of the Friends for the democratic government of Pakistan Government of Pakistan (Urdu: ?????? ???????), The Constitution of Pakistan provides for a Federal Parliamentary System of government, with a President as the Head of State and an indirectly-elected Prime . The Friends recognize the need for building strategic partnerships with the Government of Pakistan to promote economic development and financial stability, address its energy needs, build institutions and bring peace and stability to the region. The initiative signifies that The Friends stand shoulder to shoulder with Pakistan in its journey to build a strong, prosperous and progressive country. Furthermore, a well-coordinated international approach is required to address challenges faced by Pakistan. Economic stability and implementing Pakistans development agenda is essential for the success of countering terrorism and extremism. Pakistan is looking for sustained commitment of its development partners, including investors and multinational corporations as it would integrate Pakistan into global production chain and would develop its physical and social infrastructure. It is in this backdrop that the FODP Ministerial Meeting and the Donors Conference are being held back-to-back in Tokyo on 17 April 2009. The Donors Conference will be co-hosted by Japan and the World Bank and the FODP meeting will be chaired by Pakistan. President Asif Ali Zardari will chair the Friends Ministerial meeting. To finalise recommendations for the FODP Ministerial, an Experts Meeting will take place in Abu Dhabi on 1-2 April followed by a Senior Officials Meeting (SOM) in Tokyo on 16 April.

(THROUGH ASIA PULSE)

http://www.thenews.com.pk/daily_detail.asp?id=171529
Pakistan to approach IMF after FoDP word: official

Thursday, April 09, 2009
By Mehtab Haider

ISLAMABAD: Pakistan requires additional funding in order to bridge its financing gap within two years and it is yet to see how much financial assistance the Friends of Democratic Pakistan (FoDP) extend in the upcoming meeting on April 17 at Tokyo, a senior official of the IMF said.

“Pakistan has not yet formally approached the IMF for seeking additional funding. It largely depends on the FoDP forum how much the donors are going to fill the gap within a two-year period,” a senior official of the International Monetary Fund (IMF) based in Islamabad said while talking to The News.

Pakistan will have to make fiscal adjustments by maximising its revenues to overcome the FBR’s shortfall or by cutting its expenditures in order to achieve the fiscal deficit target of 4.3 per cent of the GDP.

He said that Pakistan required additional funding over the next fiscal year after obtaining the IMF’s loan. It is yet to be seen how much the FoDP offers to Pakistan in its meeting.

To another query about IMF’s view on reducing the discount rate in the upcoming monetary policy review of the central bank, the IMF says that there were expectations that the inflationary pressure would ease in the months ahead. When core inflation will ease, the discount rate will be reduced, he added.

Regarding FBR’s shortfall in the current fiscal, he said that the revenue shortfall would be compensated through Petroleum Development Levy (PDL). “Either the FBR will have to make extra efforts to maximize its revenues or expenditures will have to be cut down to achieve the envisaged fiscal deficit target of Rs562 billion,” he concluded.

However, the sources said that Pakistan has estimated $4 to $6 billion financing gap till end of the next fiscal year 2009-10 that will be sought from the FoDP forum on April 17 at Tokyo in the second session of Donors’ Conference.

According to Pakistani authorities as well as IMF’s projections for the ongoing fiscal year 2008-09 in accordance with the Fund’s document, Pakistan will receive a total $3.595 billion in shape of total budgetary support for the ongoing fiscal year from multilateral as well as bilateral donors.

The World Bank is projected to provide total $800 million to Pakistan in the ongoing fiscal year. The WB had so far disbursed $500 million while remaining $300 million would be provided before June 30, 2009.

The ADB had so far provided $834 million to Pakistan during the first nine months (July-March) period while another $500 million would be provided in the last quarter (April-June), totaling its assistance up to $1.334 billion for the ongoing fiscal year 2008-09.

The Islamic Development Bank (IDB) is projected to provide $761 million to Pakistan during the ongoing financial year. So far the IDB provided $661 million and the remaining $100 million was expected to be given to Pakistan during the last quarter of the ongoing fiscal year.

Pakistan is projected to receive $500 million from bilateral support, which Islamabad has already received. Pakistan is expecting to receive total $200 million in shape of short-term commercial inflows, which have already been received by Islamabad.

There are projections of total $91 million budgetary grants for the ongoing fiscal year out of which Islamabad has so far received $71 million while remaining $21 million will be received during the last quarter of the ongoing fiscal year.

“There are no projections estimated in shape of privatisation proceeds as well as Global Depository Receipts (GDRs) for the ongoing fiscal year,” the IMF document states.
http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=72575&Itemid=2
FODP experts appreciate Pakistan’s approach for promoting development and countering terrorism
ISLAMABAD, Apr 3 (APP): Experts meeting of Friends of Democratic Pakistan appreciated Pakistan’s comprehensive approach and the identification of priorities for promoting development and security as well as countering the challenges of terrorism and extremism. This meeting will go a long way in taking the FODP process forward and building strong partnerships with Pakistan for peace and development in the region and the world, said Secretary General to President M. Salman Faruqui in his concluding remarks at two day preparatory meeting of Experts to the Friends of Democratic Pakistan (FODP) held in Abu Dhabi.
The meeting was co-chaired by Dr. Tariq Ahmed Al-Haidan, Assistant Under Secretary for Political Affairs, Ministry of Foreign Affairs of the United Arab Emirates (UAE) and M. Salman Faruqui, Secretary General to the President of Pakistan, says a message received here on Friday.

Salman Faruqui expressed the hope that establishment of the working groups and the FODP Secretariat in Islamabad will further enhance our capacity to coordinate efforts and to meet these objectives.

“We are ready to continue this constructive engagement to make the Tokyo meetings a success”, he added.

He reiterated Pakistan’s commitment to keep the two meetings of the FODP and the Donors, on separate tracks and with distinct objectives.

Given the importance Pakistan attaches to the FODP process, Salman Faruqui said President Asif Ali Zardari will be present at the Tokyo Ministerial meeting. “We greatly appreciate that Prime Minister Taro Aso has kindly consented to be present in the FODP meeting”, he added.

He said, “We have had two days of exhaustive discussions on the five clusters and Pakistan’s strategic vision to meet its economic and security challenges. I thank you all for your interest and valuable suggestions. This meeting has helped us in further clarifying our views for discussion in the Tokyo meetings. It has also helped us in taking forward the preparatory work in the run-up to Tokyo”.

The Secretary General to the President of Pakistan thanked the experts for their participation, welcomed the addition of new members in the Friends Group and delivered a message, on behalf of the President and Prime Minister of Pakistan underscoring Pakistan’s vision of a progressive, democratic state committed to forging greater friendship and partnership for peace and development in the region and the world.

The Experts appreciated the transition to democracy in Pakistan and its consolidation. The meeting further appreciated the commitment of the Pakistani leadership to strengthen democratic institutions and promote the rule of law.

The Experts noted with appreciation the clear articulation by Pakistan of its strategic priorities in terms of promoting development and security and countering the challenges of terrorism and extremism by adopting a holistic and comprehensive approach.

The experts, inter alia, examined the preliminary documentation presented by Pakistan relating to:

· Poverty alleviation through social protection;

· Improving security through enhancing the capacity of national institutions and meeting its security needs;

· Enhancing the efficiency of governance through capacity building and partnering of institutions as well as policy and regulatory reforms;

· Strengthening the private sector as the true engine for sustainable economic growth;

· Strengthening public private partnership;

· Accelerating human resource development through increased investments in education and health including population welfare;

· Commitment by the Government of Pakistan to work internally and with the international donor community over the medium and long term to address needed infrastructure development including in the critical water and energy sectors;

The Experts took note of the interest to evolve Pakistan’s strategy for effective communications and public diplomacy by reaching out to the business community and media to positively project the FODP initiative.

The Experts also took note of the forthcoming Donors Conference in Tokyo which aims at meeting Pakistan’s urgent financial requirements.

The Meeting recommended high level participation

at the FODP Ministerial in Tokyo on 17 April and the Meeting noted Pakistan’s decision to establish the FODP Secretariat in Islamabad.

In line with the statement by the High Officials of the FODP adopted in Abu Dhabi on 17 November 2008, the Meeting recommended to the FODP Ministerial to give strong political support to the FODP process and to the mutual efforts of Pakistan and the FODP to enhance Pakistan’s inherent strengths and capacity in overcoming challenges and building a partnership for peace and development.

http://www.pid.gov.pk/press01-04-09.htm
PR NO. 01
PRESS RELEASE
STRONG SUPPORT FOR PAKISTAN’S DEVELOPMENT EXPRESSED AT THE EXPERTS MEETING OF FRIENDS OF DEMOCRATIC PAKISTAN (FODP)
Islamabad, April 1, 2009

Pakistan sees the FODP process aimed at enhancing Pakistan’s capacity and strengths as Pakistan is determined to convert challenges into opportunities, stated Mr. M. Salman Faruqui, Secretary General to the President, while addressing the Friends of Democratic Pakistan (FODP) meeting in Abu Dhabi, says a press release received here today. Mr. Faruqui is leading the Pakistan delegation as well as co-chairing the Experts meeting of the FODP which has been hosted by the Government of the UAE in Abu Dhabi. The Experts of 19 member countries and international institutions are meeting to prepare for the FODP ministerial meeting that is being hosted by the Government of Japan in Tokyo on 17 April 2009.

The Experts meeting was inaugurated by the Minister of State for Foreign Affairs of the UAE, Mr. Mohammad Anwar Gargash. Mr. Gargash expressed his Governments strong support for Pakistan’s development needs. He assured his government’s readiness to assist Pakistan’s efforts in overcoming the economic and security challenges facing the country. Mr. Gargash viewed FODP as a long term process in producing tangible results for Pakistan’s security and development. He emphasized that Pakistan’s development and progress was vital for peace and stability of the region.

In his remarks, Mr. M. Salman Faruqui thanked His Highness Sheikh Khalifa Bin Zayed Al-Nahyan, His Highness Sheikh Abdullah Bin Zayed Al- Nahyan as well as the Government of the U.A.E. for hosting the Experts meeting. He added that Pakistan was grateful to the U.A.E Government for its steadfast and tangible support to Pakistan’s development. He also thanked all the members of the FODP process for their participation and interest in Pakistan’s development.

Mr. Faruqui outlined the challenges faced by Pakistan. He added that Pakistan was committed to reduce poverty in the country and meet the MDGs. It, however, faced many challenges which stood in the way of achieving our goals. These included the immediate security situation that threatened the underpinnings of democracy as well the slow down in economic growth of Pakistan. The Government, however, was committed to converting challenges into opportunities. The strategy and projects being proposed at the Experts’ meeting had this end in view.

He added that the leadership of the Pakistan had personally supervised the process of preparation for strategy documents and projects under the five clusters of development, energy, institution building, security, and trade and finance.

Mr. Faruqui said that Pakistan saw the FODP Ministerial Meeting as not a one-time event, but part of a long-term engagement and partnership with the Friends. We intended to set up a secretariat of the FODP in Islamabad, he added. We also envisaged separate Working Groups with interested countries and institutions to carry forward the FODP process under five clusters. A Pakistan Development Trust Fund was proposed to be established under the auspices of World Bank to complement Pakistan’s development efforts in less developed areas of the country, Mr. Faruqui informed.

The members of the FODP include Australia, Canada, China, Denmark, France, Germany, Italy, Japan, Norway, Netherlands, Republic of Korea, Pakistan, Saudi Arabia, Spain, Sweden, Turkey, UAE, UK, USA, Asian Development Bank, European Commission, European Union, Islamic Development Bank, United Nations, World Bank.

MA/gm.

http://pukhtunkhwatimes.blogspot.com/
Terror Czar Sufi Mohammed calls off Swat peace deal
SWAT: The chief of outlawed Tehreek e Nifaz e Shariat Mohammedi has withdrawn from the peace deal with the government and has said all peace camps in the region will be abolished, DawnNews has reported.

Mohammed, who brokered the peace deal between the Taliban and the government of Pakistan has claimed that the authorities have used delaying tactics in imposing the Nizam-i-Adal (Islamic courts) in the Swat region.

The announcement casts serious doubt on the durability of a cease-fire in the Swat valley that U.S. officials worry will create another sanctuary for allies of al-Qaida responsible for a rising tide of violence in the nuclear-armed country.

Imposing Islamic law in Swat, a one-time tourist haven, was the key plank of an accord worked out in February between the provincial government and Sufi Muhammad, a cleric who once led thousands of volunteers to fight U.S. forces in Afghanistan but has since renounced violence.

Thanks in part to Muhammad’s mediation, the agreement ended 18 months of terror and bloody clashes that had left hundreds dead and forced up to one-third of the previously prosperous valley’s 1.5 million residents to flee.

But the militants have retained their arms and this week pushed into a neighboring area where they fought deadly gunbattles with villagers and police.

President Asif Ali Zardari has said he will only sign an order introducing Islamic law in the region once peace has been restored _ without saying how that would be determined.

Muhammad, who had been camped out in the valley’s main town of Mingora with hundreds of black-turbaned supporters, said they were leaving to protest Zardari’s ‘negative attitude.’

‘From now on, President Zardari will be responsible for any situation in Swat, ‘ the white-bearded cleric told reporters. ‘The provincial government is sincere and our agreement with the provincial government is intact, but we are ending our peace camp.’

Television footage showed dozens of Muhammad’s supporters crammed into a column of cars and driving out of Mingora, some of them clutching black and white flags.

Mian Iftikhar Hussain, the information minister for the government of North West Frontier Province, said he believed the federal government was ‘sincere’ in supporting the peace effort, but said he couldn’t say when the Islamic law bill would be signed.

‘We are committed to bringing about a durable peace and we will continue our efforts in the changed situation,’ Hussain said.

Zardari aides said officials were looking into the matter but gave no further comment.

Hasan Askari Rizvi, a political and military analyst, said Zardari may have delayed signing off on the agreement because of concerns within the year-old civilian government over negotiating with militants.

‘The opinion is divided,’ Rizvi said. ‘A good number of people in the government think that this is not the right approach.’

Zardari’s foot-dragging also lets him save face with Western critics of the deal, he said.

Under former military ruler Pervez Musharraf, Pakistan struck a series of peace deals with militants along the Afghan border that U.S. officials say let the Taliban and al-Qaida regroup and focus their energy on attacking American and NATO troops in Afghanistan.

President Barack Obama has made a sharp increase in financial aid to Pakistan conditional on it demonstrating more commitment to rooting out al-Qaida and other extremist groups.

U.S. envoy Richard Holbrooke said Tuesday after meeting Zardari in Islamabad that the situation in Swat had helped persuade more of Pakistan’s political elite of the need to combat extremism at America’s side.

Pakistan desperately needs economic aid to ease the fallout from an economic crunch. It also faces an exodus of foreign investors in the face of rising violence and political uncertainty.

On Thursday, one policeman died and five more were injured as protests erupted across the southwestern province of Baluchistan after the discovery of the mutilated bodies of three missing political activists.

The trio included the leader of one of an array of Baluch groups campaigning _ or fighting _ for more autonomy and control over natural resources in the impoverished province, which borders Afghanistan and Iran.

Activists immediately blamed Pakistan’s spy agencies for the political activists’ deaths. Police said they were investigating.

Over the weekend, a previously unknown Baluch group freed an American U.N. worker after holding him for two months to press the government to release political prisoners.

Terror Czar Sufi Mohammed calls off Swat peace deal
SWAT: The chief of outlawed Tehreek e Nifaz e Shariat Mohammedi has withdrawn from the peace deal with the government and has said all peace camps in the region will be abolished, DawnNews has reported.