US to make transformational investments in Pakistan

[Lahore_Real_Estate]

By Anwar Iqbal
Monday, 19 Apr, 2010
WASHINGTON: The United States wants to make ‘transformational’ investments in the energy, water and agricultural sectors in Pakistan which could help stabilise the country’s ailing economy, says the chief of the US Agency for International Development.

USAID Administrator Rajiv Shah told a briefing in Washington that the United States was envisaging “larger scale, more transformational types of investments,” in Pakistan that could “take us all where we want to go.”

Such investments, he said, would bring substantial, long-term benefits. “So that 10 or 20 years from now, you could look back and say you started to see these big increases in agricultural value added and productivity because of unique things that were done now.”

Mr Shah, who recently visited Pakistan and Afghanistan, said he discussed the plan with officials in Islamabad as well and came back “very encouraged.”

At an earlier briefing, Special US representative Richard Holbrooke described the water and energy issues as Pakistan’s most pressing problem and said that the Obama administration was working on a range of actions for Islamabad in the field of energy, security and water.

Diplomatic sources told Dawn that the three sectors – energy, water and agriculture – were identified during the first ministerial level strategic dialogue between the two countries in late March.

“It was suggested, and accepted, that instead of investing in a wide spectrum of small projects managed by NGOs, the United States will invest in larger projects in specified sectors,” said one such source.

“Both sides agreed that small-scale investment cannot help revive the Pakistani economy and they also do not serve the US ambition of being seen in Pakistan as a friend that helped the country when it needed it the most.”

In the energy sector, the emphasis will be on power generation. In the water sector, the US will investment in water management, conservation and storage facilities.

In agriculture, the focus will be on research and increasing productivity.

Relevant ministries in Islamabad are already working on various plans to be reviewed by joint working groups. The working groups will hold several meetings between now and October to finalise a plan before Secretary Clinton’s visit.

The sources ruled out that possibility of US investment in a large dam because the USAID stopped financing mega projects about 10 years ago.

This, however, may change if the USAID teams up with the World Bank.