Saudi govt shows little interest in FoP conference: WSJ

[LahoreEstate]

NEW YORK: Saudi Arabia is showing only ‘muted interest in supporting’ Pakistani President Asif Ali Zardari despite Washington's effort to help strapped Pakistan raise some $ 4 billion to $ 5 billion in immediate infusion of money, the Wall Street Journal reported Wednesday quoting people involved in the deliberations.

As the donor nations meet in Japan at Friends of Pakistan Conference, the WSJ quoted a senior official involved in discussions as saying ‘the big outstanding question about the conference is Saudi Arabia.’ ‘They are closely aligned with Sharif.’

Pakistan appears certain to get at least $4 billion from the conference. If Saudi Arabia doesn't contribute to that total, it could undermine Islamabad's efforts to meet its financial obligations. Last November, Pakistan was forced to turn to the International Monetary Fund for $7.6 billion in loans to avert a balance-of-payments crisis.

A pass by Saudi Arabia would also send a signal that it doesn't support the Zardari government. Mr. Sharif's political capital has increased significantly since opposition protests last month led to concessions by Mr. Zardari —including an invitation to join his party's government, which the opposition leader has so far declined.

‘Riyadh has close ties with opposition leader Nawaz Sharif, who has emerged as a serious challenger to Mr. Zardari. Mr. Sharif, a former prime minister, spent much of nearly a decade in exile in Saudi Arabia, before returning to Pakistan in late 2007,’ the WSJ said.

Riyadh took part in a meeting last week in Dubai to address Pakistan's finances but declined to make a formal pledge to Islamabad, according to participants in the talks. An official at the Saudi Arabia Embassy in Washington declined to comment Tuesday.

Saudi Arabia has traditionally been among Pakistan's largest aid donors and strategic allies. During the 1980s, Saudi Arabia cooperated closely with Washington and Islamabad to expel Russian troops from Afghanistan, the newspaper said.

In recent years, however, the US and Saudi Arabia have taken differing positions on Pakistan's leadership. In late 2007, Riyadh negotiated a deal with former Pakistani President Pervez Musharraf, without seeking American consent that allowed Mr. Sharif to return home, according to US and Saudi officials.

The US has long voiced skepticism about Mr. Sharif, citing his ties to Islamist parties. Mr. Zardari leads Pakistan's largest political party, which is secular and largely viewed as pro-Western.

Saudi officials have voiced reservations in general about providing aid through multilateral forums because of a lack of assurance on how the money will be spent. Saudi Arabia is also giving Pakistan 80,000 to 100,000 barrels of oil per day. With oil at around $50 per barrel, this equals roughly $5 million in aid per day.

Saudi Arabia is sending a delegation to the Tokyo conference, and an Arab diplomat said he would be ‘surprised’ if Riyadh didn't pledge some money.

The US and Japan are each expected to pledge $1 billion to Mr. Zardari's government Friday, according to the officials involved in the negotiations. The European Union, the UK and the United Arab Emirates are each expected to pledge as much as $500 million.

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