NAWAZ ASSURES BOUCHER HE WILL NOT EMBARRASS THE

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 003399 SIPDIS E.O. 12958: DECL: 08/04/2018 TAGS: PREL PTER PGOV PK SUBJECT: NAWAZ ASSURES BOUCHER HE WILL NOT EMBARRASS THE GOVERNMENT Classified By: Anne W. Patterson, for reasons 1.4 (b)(d) ¶1. (C) Summary. In an October 20 meeting with Assistant Secretary Boucher, Nawaz Sharif expressed disappointment with the outcome of an ongoing joint session of parliament on the security situation and said he was sending a letter to Prime Minister Gilani outlining his party,s strategy on counter-terrorism. He called for forming a multi-party committee to draft a joint resolution that supported dialogue, economic development and a commitment that Pakistan's territory would not be used to launch terrorist attacks on other countries (see also septel). Nawaz said he would not embarrass the government and would support, without conditions, both its counter-terrorism and economic policies. However, Nawaz noted that Pakistan's experience with International Monetary Fund programs had not been pleasant. Boucher commented that establishing a consensus on these issues would both help defeat terrorism and increase international support for Pakistan. Boucher briefed Nawaz on the purpose of the Friends of Pakistan group and noted that Saudi Arabia had positively participated in the October 20 Islamabad discussion. Nawaz flatly denied he was involved in any negotiations in Saudi Arabia between the Afghan government and the Taliban. End Summary. ¶2. (C) On October 20, Assistant Secretary for South and Central Asia Richard Boucher and Ambassador met with Pakistan Muslim League-Nawaz leader Nawaz Sharif. Also attending were: Pakistan Muslim League-Nawaz members Shahbaz Sharif, Chaudhry Nisar, Khwaja Asif, and Ashan Iqbal; SCA's Senior Advisor Caitlin Hayden and Polcouns. ¶3. (C) After an initial exchange about the challenges facing farmers in the Punjab, Boucher expressed continuing U.S. support for food and economic aid and praised the government for its efforts to deal with systemic structural problems in the economy. Shahbaz Sharif remarked that Pakistan was living off the support of the United States; Boucher challenged that assumption noting that only a small part of Pakistan's economy relied on foreign aid. ¶4. (C) Chaudhry Nisar criticized the government's seriousness in organizing the ongoing joint session of parliament on security issues saying that the leadership had not done its homework and the military briefing provided no new information. He wondered why the Foreign, Defense and Interior Ministers had not been present to answer questions after Information Minister Rehman's presentation of the government position and said that Rehman had not offered any policy options up for debate. ¶5. (C) Nawaz expressed disappointment with the outcome of the joint sitting and said he was submitting a letter to the Prime Minister that called for a joint committee to draft a resolution that could be voted upon by the entire parliament. His plan was to outline a strategy that would elicit ownership from all sides. It supported dialogue and socio-economic development for the tribal areas and included a commitment that Pakistan's territory should not be used to launch terrorist activity against other states (see septel for additional details). ¶6. (C) Assistant Secretary Boucher said it was good to hear that Nawaz,s party was focusing on fundamentals. A joint base could be useful both in fighting militants and in building international support for Pakistan. Nawaz said terrorism was a very serious problem that required a consensus policy. The situation was worsening all over the country; Nawaz himself had to spend 40 million rupees to increase security around his house in Lahore. He pledged not to embarrass the government and said the Pakistan Muslim League-Nawaz would support the government, without conditions, on its counter-terrorism and economic policies. ¶7. (C) In response to Nawaz's question about the U.S. presidential election, Boucher said all candidates had emphasized the need for increased aid to Pakistan. But given domestic financial pressure, it was hard to predict the future. He asked if Nawaz would support an International Monetary Fund package for Pakistan. Nawaz noted that Pakistan's past experiences with the Fund had not been ISLAMABAD 00003399 002 OF 002 pleasant and it would be better not to have a formal program. However, if it was necessary, then Pakistan had no choice. ¶8. (C) Ahsan Iqbal commented that the Fund was dominated by bankers who did not appreciate the political ramifications of their conditions. Khwaja Asif noted that the Fund had failed to rescue countries in recent years and it was better to rely on bilateral assistance. He said that Pakistan was sensitive to political factors and needed blood in the form of an immediate influx of foreign reserves to revive an ailing patient. Boucher responded that the Fund's seal of approval was often necessary to elicit additional international and bilateral support. Chaudhry Nisar said that, officially, the Finance Minister was still saying that a Fund program was a last resort. ¶9. (C) Nawaz asked how the Friends of Pakistan initiative was progressing. Boucher emphasized that the purpose of the Friends group was not to provide cash but to hear the government's plans for security, education, development, etc and determine how other states can fill in the holes. Over time, the initiative can produce better and more targeted assistance. International financial institutions can complement this effort with loans. The core group included the U.S., UK, Saudi Arabia, United Arab Emirates, and China; the Saudis, said Boucher, had come and participated in a very positive and encouraging way. There were more and more countries interested in the initiative every day. ¶10. (C) Finally, Boucher asked if the press stories were true that Nawaz had attended the Saudi iftar dinner for the Taliban in Mecca. Nawaz said "no, never." He had met with King Abdullah but had been "amazed" to read in the press about his alleged role in negotiating between the Taliban and Afghanistan. ¶11. (U) Ambassador Boucher has cleared this message. PATTERSON