USAID Funding for Pakistan Food Shortfalls

UNCLAS ISLAMABAD 002611 AIDAC E.O. 12958: N/A TAGS: EAID ECON PGOV PK PINR PREL PTER PREF IO SUBJECT: USAID Funding for Pakistan Food Shortfalls ¶1. (U) Summary. The U.N. World Food Program (WFP) expects food shortfalls in Pakistan in late 2009. Current donor pledges to the WFP Emergency Operation (EMOP) will improve, but not resolve, the food pipeline situation. USAID is providing USD 21 million in immediate funding to WFP to prevent any possible food pipeline breaks in the coming months. -------------- Food Shortfalls -------------- ¶2. (U) At an October 21 donors meeting, the WFP Country Representative for Pakistan announced that WFP faces a USD 8.5 million food shortfall in November and December 2009, even if the organization receives all current donor pledges from the international community. As a result, WFP has announced that the organization is planning to reduce rations of wheat for internally displaced person (IDP) families by half, beginning November 1. ¶3. (U) Pledged assistance, if received, would arrive in mid-November at the earliest - too late to prevent the imminent food pipeline break in November and subsequent halving of family wheat rations. In addition, if WFP does not receive the pledged assistance, or receives pledged funding later than expected, food shortfalls in wheat and oil will total approximately USD 21 million for the remainder of 2009. -------------- - Initiatives to Prevent the Food Pipeline Break -------------- - ¶4. (U) WFP is working on a plan to cover the anticipated shortfalls through borrowing commodities from the Government of Pakistan (GoP) or other WFP non-emergency food programs, in addition to requesting increased WFP global funding and additional assistance from international donors. However, pledged funding must be received before November 1 to prevent food pipeline breaks in 2009. ¶5. (U) WFP currently provides approximately USD 30 million in food assistance per month to 2.4 million beneficiaries in Pakistan. At current funding levels, food pipeline breaks are also expected in early 2010 for wheat, pulses, oil, and salt. Even if WFP is successful in covering the gap for November and December, WFP will need increased donor assistance to fill the 2010 pipeline. To ensure that WFP is able to continue providing full rations to IDP families in the coming months, Post, in consultation with USAID's Office of Food for Peace in Washington D.C., plans to provide WFP in Pakistan with USD 21 million in new support. This assistance will mitigate pipeline breaks in 2009 and contribute to WFP's 2010 pipeline. Post will continue to press donors to contribute to WFP's EMOP and encourages WFP to seek additional collaboration and in-kind assistance from the GOP. ¶6. (U) Funds for this purpose were appropriated as part of the fiscal year (FY) 2009 Emergency Supplemental. Note: USAID/Pakistan notified Congress of its spending plan and funds were released - including USD 75 million for Humanitarian Assistance - at the end of FY 2009. USAID/Pakistan has obligated all funds contained in the Supplemental Appropriation under an agreement with the GoP. This funding is therefore available for immediate sub-obligation to WFP. Patterson