Prime Minister Yousuf Raza Gilani reiterated on Sunday Pakistan’s demand for disbursement of US financial aid through government mechanism.

Prime Minister Yousuf Raza Gilani reiterated on Sunday Pakistan’s demand for disbursement of US financial aid through government mechanism.

Under a system being put in place by the Obama administration, the government will receive only about $300 million from the $1.5 billion financial assistance and the remaining amount will be spent through US agencies and non-government organisations.

During a meeting with US Deputy Secretary of State for Resources and Management Jacob J. Lew and the acting administrator of USAID, Alouso L. Fulgham, the prime minister said disbursement through NGOs would involve administrative expenses, sometimes to the extent of 35 to 40 per cent, and the amount for public welfare would be drastically reduced.

He asked the US official to hold talks with the finance minister and secretary for working out a procedure.

He said the Benazir Income Support Programme, the Higher Education Commission and the basic education and health units should be considered for US help.

He said the energy sector was top priority of his government and the US government and public sector should help Pakistan by mobilising investments for various projects. The US official praised the government’s successful operation against militants in Malakand and efforts for rehabilitation of the displaced people.

He promised his government’s full support in this regard.

He said that the US would work in coordination with the government to identify projects for assistance in the affected areas.

He said the main objective of his visit was to apprise himself about the economic situation and discuss projects in power sector and development of infrastructure in the areas where reconstruction opportunity zones would be set up.