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O P 171247Z JUL 08
FM AMCONSUL LAHORE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3732
INFO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 4463
RUEHBUL/AMEMBASSY KABUL PRIORITY 0258
RUEHLO/AMEMBASSY LONDON PRIORITY 0076
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0633
RUEHKP/AMCONSUL KARACHI PRIORITY 1870
RUEHPW/AMCONSUL PESHAWAR PRIORITY 1553
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RUEKJCS/SECDEF WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEHLH/AMCONSUL LAHORE 4864

C O N F I D E N T I A L SECTION 01 OF 02 LAHORE 000233 
 
SIPDIS 
 
E.O. 12958: DECL:  7/17/2018 
TAGS: PGOV PREL PTER ECON PK
SUBJECT: BOUCHER PAYS COURTESY CALL ON SHAHBAZ SHARIF WEARING CHIEF 
MINISTER HAT 
 
CLASSIFIED BY: Bryan Hunt, Principal Officer, US Consulate 
Lahore, Department of State. 
REASON: 1.4 (b), (d) 
¶1. (C) Summary: Assistant Secretary Boucher paid a courtesy call 
on Punjab Chief Minister Shahbaz Sharif in Lahore on July 1. 
Shahbaz outlined his priorities for the Punjab, expressing 
concern that terrorist cells already present in the province 
could be activated in light of the Federally Administered Tribal 
Agencies Khyber Agency military offensive and had ordered 
provincial security forces to increase their security posture. 
He also lamented the state of public schools in the Punjab and 
estimated about five percent of the madrassas in the Punjab are 
involved in militancy and extremism.  Shahbaz outlined his 
intentions to establish competing public schools in areas where 
such madrassas operate and his determination to use 
administrative measures to shoot down non-reforming madrassas. 
Shahbaz stressed that socioeconomic indicators had to be 
improved to counter terrorism effectively.  End Summary. 
 
¶2. (C) Assistant Secretary for South and Central Asian Affairs 
Richard Boucher, accompanied by National Security Council 
Director for South and Central Asian Affairs Mark Webber, Deputy 
Chief of Mission Peter Bodde, Principal Officer Bryan Hunt, 
Senior Advisor Caitlin Hayden and Political Officer Antone 
Greubel (notetaker), met with Shahbaz on July 1 in Lahore.  The 
Assistant Secretary asked Shahbaz about his priorities for 
Punjab.   Shahbaz said the law and order situation is his number 
one priority and that he had just met with provincial security 
forces to go over Punjab security issues in light of the 
offensive in the Khyber Agency.  Shahbaz feared there would 
likely be a spillover effect in the Punjab and stated militants 
have terrorist cells in the Punjab awaiting instructions. 
 
¶3. (C) Shahbaz added that the majority of militants in Punjab 
hailed from organizations that were originally involved in 
sectarian conflicts and that over time had become associated 
with militants from the Northwest Frontier Province.  When 
pressed by the Assistant Secretary, Shahbaz said he fully 
supported efforts to tackle militancy in the Northwest Frontier 
and backed the recent Khyber operations but was perturbed that 
the federal government had not consulted him before the 
commencement of the military operation.  He added that Pakistan 
could more effectively contribute to the War on Terror if its 
policy would be debated and approved on the floor of the 
National Assembly. 
 
¶4. (C) Shahbaz told the Assistant Secretary that one of his 
other main priorities was to improve the state of public 
education in the Punjab.  He said that the majority of middle 
and upper class families sent their children to private schools 
primarily because the public schools were deficient.  Teachers 
needed training and the appointments for teaching posts needed 
to be de-politicized.  Ghost schools and teachers also need to 
be eliminated.  Poor families in contrast cannot afford to pay 
private school tuition and, especially in rural underdeveloped 
areas, sent their children to madrassas since the public schools 
were either shut down or did not meet even minimum acceptable 
standards. 
 
¶5. (C) Shahbaz estimated that five percent of madrassas in the 
Punjab had ties to militants or extremists.  To counter their 
growing influence, he planned to concentrate initial efforts on 
pouring resources into improving the state of public education 
in areas where hostile madrassas operated.  When asked by the 
Assistant Secretary, Shahbaz estimated 80% of parents currently 
sending their children to those madrassas would withdraw them if 
they had access to good public schools.  Shahbaz asserted that 
his government would demand that madrassas end the teaching of 
militancy and extremism and introduce a modern educational 
curriculum.  He claimed that he was already working with 
madrassa leaders in this regard.  Shahbaz assured Boucher that 
madrassas refusing to reform would be shut down through 
administrative measures. 
 
¶6. (C) Boucher expressed concern that the declining economy 
could cause significant problems for the provincial government 
in meeting its spending targets.  Shahbaz acknowledged that 
public finances would be stretched thin due to the slowing 
economy and inflation.  He pledged to conserve and prioritize 
public resources as well as curb corruption and improve 
transparency.  In light of rising food prices and shortages, he 
said he is reviewing ways for the government to increase 
agricultural subsidies without triggering another wave of food 
inflation.  He noted that his provincial budget allocated US$35 
million to provide subsidized tractors to farmers. 
 
 
LAHORE 00000233  002 OF 002 
 
 
¶7. (U) Assistant Secretary Boucher has cleared this cable. 
HUNT