November 18, 2008	Tuesday	Ziqa'ad 19, 1429

WASHINGTON, Nov 17: Pakistan is not expecting pledges of financial support from a group of friendly nations that met in Abu Dhabi on Monday to consider various proposals to help revive its ailing economy.

Diplomatic sources in Washington told Dawn that Monday’s meeting only included mid-level officials and focussed on exploring investment opportunities in Pakistan.

Pakistani officials briefed the officials on investment needs and opportunities.

Based on this information, the member countries will encourage their investors to invest in Pakistan.

Although Pakistani officials briefing the media tried to give the impression that the group would offer financial assistance as well, President Zardari had taken a totally different position during a media briefing in New York after the forum’s inaugural meeting.

“We are not asking for fish,” he said. “We are asking for the equipment and want to do our own fishing.” His statement made it obvious that if there’s an infusion of funds from the Friends of Pakistan group, it would come in the form of investments, not aid.

On Monday, the group adopted a work plan for cooperation in broad areas that cover economic development, financial stability, energy needs, building institutions and bringing peace and stability to the region.

Pakistan, however, expects bilateral financial assistance from the United States and China, particularly after concluding an agreement with the International Monetary Fund for a $7.5 billion rescue package.

Diplomatic sources in Washington told Dawn that Islamabad would be among the first to receive US assistance when the new Obama administration took charge in January.

Official US sources also confirmed that the US Congress was likely to approve a multi-billion aid package for Pakistan, known as the Biden-Lugar bill, early next year.

Senator Barack Obama backed this bill when it was introduced in the Senate and promised to use his influence to get the bill passed after he was elected president on Nov 4. Senator Biden, who was elected vice-president in the same election, has promised similar support.

Two other senior senators —Hillary Clinton and John Kerry — also pledged to push for an early adoption of the bill when President Asif Ali Zardari telephoned them from his hotel in New York last week.

Mr Zardari received similar assurances from senior members of the Obama team.

Pakistan’s another close ally, China, has promised to deposit $500 million in the State Bank of Pakistan to strengthen foreign reserves. They money, however, will not be available to the government for current spending.

China provided a similar assistance in 1996 by depositing $500 million in the State Bank of Pakistan. In 2001, the loan was renewed for additional five years but in 2006 Pakistan refused to pay back, annoying the Chinese.

The Chinese shared their annoyance with President Zardari when he visited Beijing last month and asked for financial assistance. Beijing has since overcome its annoyance and is now willing to loan another tranche of $500 million.

Pakistan, however, will have to pay interest on this loan which will be determined later.

Pakistan’s other key ally, Saudi Arabia, is still reluctant to provide financial assistance as it will have to give similar support to other nations as well if it accepted Islamabad’s request.

The Saudis also are experiencing a massive increase in their own domestic spending, which limits their capacity to offer financial assistance to others.