PAKISTAN DONOR CONFERENCE: NO NEW MONEY FROM NORWAY

C O N F I D E N T I A L OSLO 000233 SIPDIS E.O. 12958: DECL: 04/07/2019 TAGS: EAID ECON EFIN IBRD IMF PK NO SUBJECT: PAKISTAN DONOR CONFERENCE: NO NEW MONEY FROM NORWAY REF: STATE 32712 Classified By: P/E Counselor Kristen Bauer for reasons 1.4 (b,d) ¶1. (C) Summary. Although Norway considers itself a strategic donor to Pakistan, it will not be able to pledge new monies at the upcoming donor conference. Norway will be represented by its Deputy Development Minister and welcomes the conference discussions, especially if they promote coordination among donors and realism in Pakistan. End Summary. ¶2. (C) Responding to the delivery of reftel points by Pol/Econ Couns and the Japanese DCM, MFA Acting Director General, Andreas Gaarder, said that Norway attaches great importance to the Conference on Pakistan. Although the FM's schedule could not accommodate the recently scheduled Conference, Norway will be represented by the Deputy Minister of Development, Hakon Gulbrandsen. Turning to the question of what Norway's pledge would be, Gaarder said that while Norway agrees with the assessment that Pakistan's role is critical to the stability of the region, it will not be able to offer new money at the conference. He said it was too late in the GON budget process to offer significant new monies for 2009 and also noted that the financial crisis is causing the GON difficulty in estimating what one percent of its 2010 GDP would be which in turn makes the entire aid budget in discussion for that year unclear. ¶2. (SBU) He explained however that Norway considers itself a long-term strategic donor to Pakistan in that Norway provides $15 million a year in education, good governance, and cultural funding. This funding will continue for the foreseeable future. In addition, Norway gives humanitarian funding of about $3 million for the North West Frontier and FATA areas. Further, Norway provides: --NOK $37 million over 5 years for the Millennium Goals 4 and 5 (maternal/child health),some of which goes to Pakistan; and --NOK $4.5 billion to the IMF, some of which can be used for Pakistan. ¶3. (C) Gaarder highlighted the GON institutional funding of $1 million for Pakistan has had some significant successes. He specifically cited the provision of Norwegian experts who work with the Pakistani standards accreditation institution assisting with measurements. Norway is looking at doing more of this type of project. Another project of interest he noted has been funding to madrassas in the North West Frontier province, where Norway has focused on using its support to provide education where no other facility exists, provide facilities to allow girls to attend, and provide materials on secular subjects. A final decision on whether to extend that program has not yet been made. ¶4. (C) Gaarder concluded that he hoped the Tokyo meeting would not just be about pledging but also about coordination among donors and use of the money in Pakistan. He was particularly concerned with Pakistani media reports that $10 billion is expected and hoped everyone would work to ensure that some realism is injected into the discussions. JOHNSON