BOUCHER PAYS COURTESY CALL ON SHAHBAZ SHARIF WEARING CHIEF

C O N F I D E N T I A L SECTION 01 OF 02 LAHORE 000233

SIPDIS

E.O. 12958: DECL: 7/17/2018
TAGS: PGOV PREL PTER ECON PK
SUBJECT: BOUCHER PAYS COURTESY CALL ON SHAHBAZ SHARIF WEARING CHIEF
MINISTER HAT

CLASSIFIED BY: Bryan Hunt, Principal Officer, US Consulate
Lahore, Department of State.
REASON: 1.4 (b),(d)

1. (C) Summary: Assistant Secretary Boucher paid a courtesy call
on Punjab Chief Minister Shahbaz Sharif in Lahore on July 1.
Shahbaz outlined his priorities for the Punjab, expressing
concern that terrorist cells already present in the province
could be activated in light of the Federally Administered Tribal
Agencies Khyber Agency military offensive and had ordered
provincial security forces to increase their security posture.
He also lamented the state of public schools in the Punjab and
estimated about five percent of the madrassas in the Punjab are
involved in militancy and extremism. Shahbaz outlined his
intentions to establish competing public schools in areas where
such madrassas operate and his determination to use
administrative measures to shoot down non-reforming madrassas.
Shahbaz stressed that socioeconomic indicators had to be
improved to counter terrorism effectively. End Summary.


2. (C) Assistant Secretary for South and Central Asian Affairs
Richard Boucher, accompanied by National Security Council
Director for South and Central Asian Affairs Mark Webber, Deputy
Chief of Mission Peter Bodde, Principal Officer Bryan Hunt,
Senior Advisor Caitlin Hayden and Political Officer Antone
Greubel (notetaker),met with Shahbaz on July 1 in Lahore. The
Assistant Secretary asked Shahbaz about his priorities for
Punjab. Shahbaz said the law and order situation is his number
one priority and that he had just met with provincial security
forces to go over Punjab security issues in light of the
offensive in the Khyber Agency. Shahbaz feared there would
likely be a spillover effect in the Punjab and stated militants
have terrorist cells in the Punjab awaiting instructions.


3. (C) Shahbaz added that the majority of militants in Punjab
hailed from organizations that were originally involved in
sectarian conflicts and that over time had become associated
with militants from the Northwest Frontier Province. When
pressed by the Assistant Secretary, Shahbaz said he fully
supported efforts to tackle militancy in the Northwest Frontier
and backed the recent Khyber operations but was perturbed that
the federal government had not consulted him before the
commencement of the military operation. He added that Pakistan
could more effectively contribute to the War on Terror if its
policy would be debated and approved on the floor of the
National Assembly.


4. (C) Shahbaz told the Assistant Secretary that one of his
other main priorities was to improve the state of public
education in the Punjab. He said that the majority of middle
and upper class families sent their children to private schools
primarily because the public schools were deficient. Teachers
needed training and the appointments for teaching posts needed
to be de-politicized. Ghost schools and teachers also need to
be eliminated. Poor families in contrast cannot afford to pay
private school tuition and, especially in rural underdeveloped
areas, sent their children to madrassas since the public schools
were either shut down or did not meet even minimum acceptable
standards.


5. (C) Shahbaz estimated that five percent of madrassas in the
Punjab had ties to militants or extremists. To counter their
growing influence, he planned to concentrate initial efforts on
pouring resources into improving the state of public education
in areas where hostile madrassas operated. When asked by the
Assistant Secretary, Shahbaz estimated 80% of parents currently
sending their children to those madrassas would withdraw them if
they had access to good public schools. Shahbaz asserted that
his government would demand that madrassas end the teaching of
militancy and extremism and introduce a modern educational
curriculum. He claimed that he was already working with
madrassa leaders in this regard. Shahbaz assured Boucher that
madrassas refusing to reform would be shut down through
administrative measures.


6. (C) Boucher expressed concern that the declining economy
could cause significant problems for the provincial government
in meeting its spending targets. Shahbaz acknowledged that
public finances would be stretched thin due to the slowing
economy and inflation. He pledged to conserve and prioritize
public resources as well as curb corruption and improve
transparency. In light of rising food prices and shortages, he
said he is reviewing ways for the government to increase
agricultural subsidies without triggering another wave of food
inflation. He noted that his provincial budget allocated US$35
million to provide subsidized tractors to farmers.


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7. (U) Assistant Secretary Boucher has cleared this cable.
HUNT