GOI ASSISTANCE TO PAKISTAN

UNCLAS ROME 000818 SIPDIS PASS USAID E.O. 12958: N/A TAGS: EAID EFIN IT PREL UN SUBJECT: GOI ASSISTANCE TO PAKISTAN REF: STATE 18844 UNCLASSIFIED PAGE 02 ROME 00818 151738Z ¶1. THE MAJOR COMPONENT OF ITALY'S BILATERAL ASSISTANCE EFFORT IN PAKISTAN IS THE $80 MILLION IN DEBT RELIEF EXTENDED IN DECEMBER, 2001. RAFFAELA DI MARO AND GIORGIO LECCESI, BOTH WITH THE DEPARTMENT OF INTERNATIONAL AFFAIRS OF THE ITALIAN MINISTRY OF ECONOMY AND FINANCE, TOLD ECOUN AND ECONOFF THAT THE GOI SHARES US CONCERN ABOUT THE ECONOMIC STABILITY OF PAKISTAN. DE MARO SAID PAKISTAN HAD PLEDGED TO USE THE MONEY FREED BY THE GOI DEBT FORGIVENESS FOR HEALTH AND EDUCATION PROGRAMS. LECCESI WAS INTRIGUED WITH THE DEPARTMENT OF DEFENSE'S PROPOSED REIMBURSEMENT TO PAKISTAN FOR ITS LOGISTICAL SUPPORT. HE IS UNCERTAIN WHETHER THERE IS SUCH A PROVISION UNDER ITALIAN LAW BUT INDICATED THAT HE WOULD RAISE THIS ISSUE WITH OTHER MINISTERIAL COLLEAGUES. HE ADDED THAT HE SEES A GROWING LEVEL OF DONOR FATIGUE IN THE INTERNATIONAL COMMUNITY BORN OF CONTRIBUTIONS TO AFGHANISTAN BUT AFFECTING ALSO PAKISTAN AS WELL AS CONCERN ABOUT PAKISTAN'S POLITICAL REGIME. ¶2. DONATO SCIOSCIOLI OF MFA'S DIRECTORATE OF DEVELOPMENT AND COOPERATION TOLD ECONOFF THAT THE GOI HAS ONE OTHER INITIATIVE UNDERWAY IN PAKISTAN: THE GOI HAS OFFERED A $7 MILLION SOFT LOAN TO PAKISTAN TO BE USED IN THE PROMOTION OF SMALL AND MEDIUM SIZE BUSINESS IN 2002. MFA IS AWAITING A PAKISTANI RESPONSE. SEMBLER UNCLASSIFIED > 2002ROME00818 - Classification: UNCLASSIFIED