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

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2002ROME00818 - Classification: UNCLASSIFIED