VZCZCXRO2628
OO RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHIL #1147/01 0711332
ZNR UUUUU ZZH
O 121332Z MAR 07
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7655
INFO RUEHAH/AMEMBASSY ASHGABAT 2062
RUEHTA/AMEMBASSY ASTANA 0041
RUEHEK/AMEMBASSY BISHKEK 4082
RUEHLM/AMEMBASSY COLOMBO 1223
RUEHKA/AMEMBASSY DHAKA 1999
RUEHDBU/AMEMBASSY DUSHANBE
RUEHBUL/AMEMBASSY KABUL 6915
RUEHKT/AMEMBASSY KATHMANDU 7983
RUEHNE/AMEMBASSY NEW DELHI 0528
RUEHNT/AMEMBASSY TASHKENT 2797
RUEHCG/AMCONSUL CHENNAI 3252
RUEHKP/AMCONSUL KARACHI 5122
RUEHCI/AMCONSUL KOLKATA 0901
RUEHLH/AMCONSUL LAHORE 1690
RUEHBI/AMCONSUL MUMBAI 3633
RUEHPW/AMCONSUL PESHAWAR 9974
RHWSMRC/USCINCCENT MACDILL AFB FL
RUEHNO/USMISSION USNATO 2000
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC

UNCLAS SECTION 01 OF 02 ISLAMABAD 001147 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR F AMBASSADOR TOBIAS 
 
E.O. 12958: N/A 
TAGS: EAID PREL PGOV PK
SUBJECT: OPERATIONAL PLAN REVIEW - PAKISTAN 
 
¶1. We look forward to the upcoming Operational Plan Review 
for Pakistan, scheduled to take place in Washington on March 
¶13. 
 
¶2. In advance of that review, let us quickly highlight two 
items that were noted in the transmittal memo for our 
Operational Plan in early February: First, the importance of 
maintaining the annual budget support line item at $200 
million; and, second, the importance of moving forward on a 
new security and development initiative for the frontier 
areas bordering Afganistan, starting with the Federally 
Administered Tribal Areas (FATA). 
 
¶3. The Operational Plan submitted in early February used 
control figures provided by Washington within the context of 
a Continuing Resolution that necessarily had to anticipate 
"worst case" scenarios.  We understand that the Continuing 
Resolution that was actually approved by Congress provides 
for a somewhat more robust foreign assistance budget, 
hopefully allowing for some further flexibility as the 
Operational Plan review unfolds. 
 
¶4. For Pakistan, two issues are especially important: 
 
-- CASH TRANSFER: FY 2007 marks the third year of a five-year 
commitment of ongoing U.S. assistance to Pakistan.  For the 
last two years, we have maintained the budget support part of 
that commitment at $200 million, with all obligations 
occurring prior to the end of the Pakistan fiscal year on 
June 30.  The budget support also provides an important 
foundation for an annual dialogue on shared economic 
objectives.  In addition, the Government of Pakistan annually 
provides the equivalent of $200 million in local currency to 
help meet its commitment to increase expenditures in health, 
education and welfare.  Given initial control figures from 
Washington, the initial Operating Plan shows a budget support 
of $152 million this fiscal year.  We very much hope that as 
part of the Operational Plan review, this figure can now be 
increased to $200 million. 
 
-- SUPPORT FOR FATA: The initial Operational Plan transmittal 
memo noted that additional funding might be available for 
FATA later in the year, possibly entailing "subsequent 
adjustments in the current operational plan."  Under any 
scenario, the Operational Plan needs to be adjusted to launch 
initial activities in FATA under the "peace and security" 
objective implemented by USAID, including a new initiative 
focused on capacity building in key FATA-related 
institutions, including the FATA Secretariat and the new FATA 
Development Authority (FDA). 
 
¶5. Over the past several months, the country team has 
developed extensive documentation on a proposed initiative to 
support the Government of Pakistan's own Sustainable 
Development Plan, which is about to be officially issued. 
This documentation includes a strategy for supporting 
Government of Paksitan efforts in FATA discussed in 
Washington in December and a program summary aimed at 
developing a new, stand-alone Strategic Objective within the 
peace and security area of the Operational Plan that is now 
being finalized.  Again, as the Operational Plan discussion 
takes place this week, we are firmly convinced that 
adjustments need to be made in the current Operational Plan 
to ensure that a new multi-year development initiative is 
launched in FATA in FY 2007 rather than having to wait until 
FY 2008. 
 
 
ISLAMABAD 00001147  002 OF 002 
 
 
¶6. Thanks again for your efforts to undertake the challenging 
and important task of consolidating foreign assistance 
budgets and ensuring that country teams launch complementary 
programs that focus on important national objectives.  This 
has definitely taken place within the Islamabad country team 
at this critical juncture in the U.S.-Pakistan partnership. 
Again, we very much hope that the two adjustments envisaged 
when we submitted the initial Operating Plan in early 
February -- one focused on the budget support line item, the 
other on a FATA intiative appearing under the peace and 
security objective -- will be made during the upcoming 
Washington review. 
 
CROCKER