VZCZCXRO4971
OO RUEHLH RUEHPW
DE RUEHIL #2822 3250955
ZNR UUUUU ZZH
O 210955Z NOV 09
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6104
RUEHBUL/AMEMBASSY KABUL IMMEDIATE 1192
RUEHKT/AMEMBASSY KATHMANDU IMMEDIATE 9367
RUEHBK/AMEMBASSY BANGKOK IMMEDIATE 8354
RUEHKP/AMCONSUL KARACHI IMMEDIATE 2584
RUEHLH/AMCONSUL LAHORE IMMEDIATE 8184
RUEHPW/AMCONSUL PESHAWAR IMMEDIATE 7231
RUEHGV/USMISSION GENEVA IMMEDIATE 4161
RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0364
INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RHHMUNA/USCINCPAC HONOLULU HI
RHMFIUU/CDR USPACOM HONOLULU HI
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RHEHNSC/NSC WASHDC

UNCLAS ISLAMABAD 002822 
 
AIDAC 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON PGOV PK PINR PREL PTER PREF IO
 
SUBJECT: USAID/Pakistan Provides $44 million for Families Displaced 
by Conflict 
 
¶1. (U) Summary.  On November 17, USAID/Pakistan notified the 
Government of Pakistan (GoP) that USAID had requested release of USD 
44 million in budget support for the GoP cash assistance to families 
displaced by conflict with insurgents.  Funds should reach the GoP's 
bank account by Friday, November 20.  This assistance will allow the 
GoP to complete its initial program for internally displaced persons 
(IDPs) from the North-West Frontier Province (NWFP), which was 
temporarily suspended due to GoP budgetary constraints.  USAID 
support will also free up resources to facilitate GoP assistance to 
IDPs now coming from South Waziristan. 
 
---------- 
Background 
---------- 
 
¶2. (U) In mid-June, the GoP initiated a cash assistance program to 
provide 25,000 Pakistani Rupees (PKR), or approximately $300, to 
displaced and conflict-affected families from Malakand Division, 
primarily those from Swat, Buner, Shangla, and Lower Dir districts. 
However, in late July the GoP suspended IDP registration and 
verification, citing budgetary constraints.  In early August, the 
U.N. expressed concern that more than 50,000 displaced families 
awaited assistance. 
 
----------------------------- 
USAID Provides USD 44 Million 
----------------------------- 
 
¶3. (U) On June 8, President Obama signed a supplemental FY 2009 
appropriation authorizing budget support to the GoP and relief to 
conflict-affected families.  The detailed spending plan developed 
for supplemental funds included USD 44 million in budget support for 
the GoP's IDP cash assistance program, which was obligated to the 
GoP on September 30th upon receiving Congressional approval.  To 
meet the Congressional requirement of "maximum accountability and 
oversight," USAID/Pakistan conducted an assessment of the GoP's 
mechanism for IDP payments.  Immediately upon receiving a 
satisfactory GoP response to the assessment findings, USAID notified 
the GoP on November 17 that the U.S. Government (USG) would disburse 
the USD 44 million.  Funds should reach the GoP's bank account by 
November 20. 
 
¶4. (U) For monitoring and verification, the GoP will supply USAID a 
complete list of USG budget support beneficiaries, with which USAID 
will conduct spot-checks and evaluations of the effectiveness of the 
program in reaching the intended beneficiaries. 
 
------------------------ 
Impact of the Assistance 
------------------------ 
 
¶5. (U) The USG's USD 44 million is the only donor contribution the 
GoP has received for this program to date.  It will meet the GoP's 
costs for PKR 25,000 subsistence payments to approximately 140,000 
IDP families, allowing the GoP to complete payments to all verified 
IDP families from Malakand Division, including newly verified 
families.  By financing over one third of the Malakand program, the 
USG funding also makes it easier for the GoP to find budgetary 
resources for nearly 40,000 families who have fled fighting in South 
Waziristan, as well as for IDP families from Bajaur Agency, 
Federally Administered Travel Areas (FATA), who so far have not been 
reached by the GoP's subsistence payments. 
 
¶6. (U) In addition to this budget support, USAID's Office of Foreign 
Disaster Assistance (USAID/OFDA) has provided USD 9 million in cash 
grants and vouchers and USD 2.6 million in cash-for-work 
opportunities for IDPs returning to Swat, Buner, and Lower Dir 
districts.  The USAID/OFDA-funded grants, vouchers, and 
cash-for-work activities form part of a larger early recovery 
program in conflict-affected areas, designed to supplement the 
GoP-provided IDP support payments. 
 
Patterson