VZCZCXRO7956
PP RUEHLH RUEHPW
DE RUEHC #1213/01 1632351
ZNR UUUUU ZZH
P 122330Z JUN 09
FM SECSTATE WASHDC
TO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 4328
RUEHAK/AMEMBASSY ANKARA PRIORITY 8862
RUEHRL/AMEMBASSY BERLIN PRIORITY 1807
RUEHSW/AMEMBASSY BERN PRIORITY 6014
RUEHBY/AMEMBASSY CANBERRA PRIORITY 4517
RUEHKU/AMEMBASSY KUWAIT PRIORITY 6266
RUEHMD/AMEMBASSY MADRID PRIORITY 1857
RUEHFR/AMEMBASSY PARIS PRIORITY 4945
RUEHRO/AMEMBASSY ROME PRIORITY 1129
RUEHUL/AMEMBASSY SEOUL PRIORITY 1137
RUEHSM/AMEMBASSY STOCKHOLM PRIORITY 7539
RUEHTC/AMEMBASSY THE HAGUE PRIORITY 5479
RUEHKO/AMEMBASSY TOKYO PRIORITY 9385
RUEHWL/AMEMBASSY WELLINGTON PRIORITY 0015
INFO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 1319
RUEHKP/AMCONSUL KARACHI PRIORITY 7013
RUEHLH/AMCONSUL LAHORE PRIORITY 8427
RUEHPW/AMCONSUL PESHAWAR PRIORITY 2829
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS SECTION 01 OF 02 STATE 061213 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID EFIN PK
SUBJECT: PAKISTAN: FOLLOW UP ON TOKYO DONOR CONF PLEDGES 
TO SUPPORT IMF PROGRAM 
 
REF: A. ISLAMABAD 902 
     ¶B. STATE 55536 
 
¶1. (U) This is an action request. See paragraph 5. 
 
¶2. (SBU) Pakistan received generous pledges from donors at 
the April 17 Tokyo Donors' Conference, which was intended to 
raise funds for social safety net and development programs, 
and to shore up reserves.  For broader donor coordination and 
to facilitate Pakistan's budgeting process, Department 
requests Posts to press host governments to provide the 
Government of Pakistan (GOP) with additional details on when 
and how they will allocate pledges committed at the Tokyo 
Donors' Conference. 
 
¶3. (SBU) Pakistan agreed to an International Monetary Fund 
(IMF) Stand-By Arrangement in November 2008.  In addition to 
assistance under the IMF program, the IMF also identified the 
need for donor support to finance critical social safety net 
and development programs.  The April 17 Tokyo Donors' 
Conference raised over USD 5 billion in pledges for these 
purposes.  The GOP has emphasized the importance of the 
delivery of donor pledges over the upcoming fiscal year 
2009/2010, which begins July 1, given the increased pressures 
on fiscal expenditures and on the current account deficit, 
and plans to loosen the 2009/2010 fiscal deficit target to 
accommodate additional donor assistance.  The GOP will 
present its budget for the coming fiscal year on June 13. 
 
¶4. (SBU)  Pakistan's fragile economy has been further hit by 
the country's increasing financial needs to address the 
humanitarian crisis. In light of this crisis, some countries 
may be tempted to double-count their Tokyo pledge and 
redirect funds to meet the humanitarian needs.  However, 
additional assistance for displaced people is needed above 
and beyond the Tokyo pledges made for Pakistan's economic 
stability.  Donors should disburse as much of their pledges 
as possible in the coming fiscal year to help ease Pakistan's 
financial pressures during the current humanitarian crisis. 
 
OBJECTIVES 
---------- 
 
¶5. (SBU) Department requests Posts to pursue the following 
objectives: 
 
-- Note host government pledge at the Tokyo Donors' 
Conference (see para 7) and express U.S. appreciation for 
host government's generosity; 
 
-- Highlight the importance of donor pledges for the 
Government of Pakistan's budget for the fiscal year 
2009/2010, which begins July 1 and will be announced on June 
13; 
 
-- Request host government coordinate pledges directly with 
the Government of Pakistan and World Bank; 
 
-- Ask for details about how the Tokyo pledge will be spent 
and when the funds will be disbursed; 
 
-- Note that funds for the UN appeal to assist internally 
displaced persons are needed above and beyond the funds 
pledged in Tokyo; 
 
-- Urge host government to consider frontloading assistance, 
if they have not done so already, to meet Pakistan's 
near-term challenges. 
 
 
STATE 00061213  002 OF 002 
 
 
 
REPORTING DEADLINE 
------------------ 
 
¶6. (U) Embassies should report results of efforts by cable to 
SCA and EEB by June 22. 
 
BACKGROUND 
---------- 
 
¶7. (SBU) According to U.S. records from the announcements in 
Tokyo, host governments pledged the following amounts over 
fiscal years 2009-2010: 
 
--Australia: 120 million Aussie over three years (43.2 
million USD over the next two years) 
--France: 200 million Euro (264 million USD) 
--Germany: 155 million USD 
--Italy: 42 million Euro (59 million USD) 
--Japan: 1 billion USD 
--Kuwait: 49 million USD 
--Netherlands: 80 million USD 
--New Zealand: 580 thousand USD 
--Republic of Korea: 40 million USD 
--Saudi Arabia: 700 million USD 
--Spain: 20 million Euro (26.4 million USD) 
--Sweden: 5 million USD 
--Switzerland: 50 million francs (29 million USD) 
--Turkey: 100 million USD 
--UAE: 300 million USD 
 
¶8. (SBU) The U.S. plans to focus its development assistance 
on certain poor districts deemed most at risk for militancy; 
support well-integrated, multi-donor interventions; and 
develop local institutional capacity in order to build 
confidence of local populations in government responsiveness. 
Some funds might be set aside for modest cash transfers to 
the GOP, subject to assessments of adequate funds control, 
targeting, and likely impacts.  These issues are still under 
discussion in Washington. 
 
POINT OF CONTACT 
---------------- 
 
¶9. (U) Please contact SRAP Mary Beth Goodman, SCA/P Tanya 
Spencer, and EEB Rachel Leatham for further information. 
CLINTON