Salient features of Kerry-Lugar Act

By Syed M. Aslam

Much has been said and written about the so-called “Enhanced Partnership with Pakistan Act of 2009” better known as Kerry-Lugar Bill that recently became the Act after being signed by the US President Barack Obama after being passed by the Senate on Sept 24.

The Act that slaps elephant-load of conditionalities on Pakistan to ‘qualify’ for $ 1.5 billion a year over five years forced Pakistani Foreign Minister Shah Mahmood Qureshi to rush to the US amidst the ongoing session of the National Assembly. This was a funny situation indeed because President Zardari and Prime Minister Yusuf Raza Gilani had owned the passing of the Bill from the US Senate as great personal and national success. And the federal Minister of Interior Rahman Malik reportedly suggested to President Zaradari to decorate President Obama with the highest civil medal of the country. The Bill, now an Act, was so close to the heart of Pakistan’s Ambassador to the US Hussain Haqqani, who has been residing the US year before his appointment to the coveted post, that he accused its critics “not understanding the English language”. Well, at least one Pakistani understands the English language.

However, strong reservations about the Act by the Political parties, particularly by Pakistan Muslim League (Nawaz), an unusual criticism by the all-pervading military establishment of country at the highest label, the severe beating from electronic and print media in particular and somewhat negative perception from public in general has forced the President, Prime Minister, Rahman Malik, Hussain Haqqani and brainless ranks and files of the ruling Pakistan Peoples Party eat their words. However, despite the ruckus true to their nature none of these nincompoops have offered an apology.

Reproduced below are the salient features of the KL Act to help you make a decision for yourself about whether the criticism was justified or not:   

• There are general, and specific, provisions relating to use of funds. In general, the funds can be used for: (1) “just and democratic governance” – to the original list of 7 items, the Senate has added “(viii) the implementation of legal and political reforms in the FATA;” (2) “economic freedom”, and (3) “investments in people, especially women and children” – in the original list of 4 items, the Senate has inserted: “(iv) vocational training for women and access to microfinance for small business establishment and income generation for women” – interestingly, under the provision for “(v) higher education …” in this section, the Bill envisages the creation of an American University in Pakistan, on the pattern of similar universities in the Middle East (see Senator Kerry’s companion report on the Bill); and finally, the Senate has added, (4) “long-term development in regions of Pakistan where internal conflict has caused large-scale displacement..” There are also specific provisions: (1) “Up to $100,000,000 of the [total five-year] funds appropriated … should be used for police reform, equipping, and training”; and (2) Of the funds appropriated each year, up to $45 million can be used to supplement normal funds available for “Operational and Audit Expenses” of U.S. government agencies.

• The Senate has added a final subsection (not present in the original draft): “(11) to encourage the development of local analytical capacity to measure progress on an integrated basis across the areas of donor country expenditure in Pakistan, and better hold the Government of Pakistan accountable for how the funds are being spent.”

• It is highly significant that the President of the United States has been formally disengaged from handling the United States’ economic and security relations with Pakistan, in view of Pakistan’s reduced status in the U.S.

• It is clear then that in terms of “available” funds, the much publicised five-year figure of US$ 7,500 million is likely to be lower: (i) by at least US$ 750 million in FY 2009, due to delay in the passage of the Act (the fiscal year ends on 30 September); and (ii) by likely delays in meeting the cumbersome requirements of reporting, certification, ntoficiation, etc. for release of funds.

SEC. 203. LIMITATIONS ON CERTAIN ASSISTANCE.

(a) Limitation on Security-related Assistance: For fiscal years 2011 through 2014, no security-related assistance may be provided to Pakistan in a fiscal year until the Secretary of State, under the direction of the President, makes the certification required under subsection (c) for such fiscal year.

(b) Limitation on Arms Transfers: For fiscal years 2012 through 2014, no letter of offer to sell major defence equipment to Pakistan may be issued pursuant to the Arms Export Control Act (22 USC 2751 et seq.) and no license to export major defence equipment to Pakistan may be issued pursuant to such Act in a fiscal year until the Secretary of State, under the direction of the President, makes the certification required under subsection (c) for such fiscal year.

(c) Certification: The certification required by this subsection is a certification by the Secretary of State, under the direction of the President, to the appropriate congressional committees that: (1) the Government of Pakistan is continuing to cooperate with the United States in efforts to dismantle supplier networks relating to the acquisition of nuclear weapons-related materials, such as providing relevant information from or direct access to Pakistani nationals associated with such networks;

(2) …(A) ceasing support, including by any elements within the Pakistan military or its intelligence agency, to extremist and terrorist groups, particularly to any group that has conducted attacks against the United States or coalition forces in Afghanistan, or against the territory or people of neighbouring countries; (B) preventing al-Qaeda, the Taliban and associated terrorist groups, such as Lashkar-e-Taiba and Jaish-e-Mohammed, from operating in the territory of Pakistan, including carrying out cross-border attacks into neighbouring countries, closing terrorist camps in the Fata, dismantling terrorist bases of operations in other parts of the country, including Quetta and Muridke, and taking action when provided with intelligence about high-level terrorist targets; and (C) strengthening counterterrorism and anti-money laundering laws; and (3) the security forces of Pakistan are not materially and substantially subverting the political or judicial processes of Pakistan.

The Senate has added a final subsection (not present in the original draft): “(11) to encourage the development of local analytical capacity to measure progress on an integrated basis across the areas of donor country expenditure in Pakistan, and better hold the Government of Pakistan accountable for how the funds are being spent.”

The teeth of the Act (its ‘conditionalities’) are in Section 5 (Authorization of Funds). While US$ 1,500 million are “authorised” annually for 5 years beginning fiscal year 2009, the amounts “appropriated” under these authorizations, will be made “available” in two tranches subject to the following conditions: a first tranche of US$ 750 million, conditional on the submission by the Secretary of State (instead of the President, following amendment by the Senate) of a Pakistan Assistance Strategy Report to the U.S. Congress in the manner, frequency, and format provided by the Act.; and with effect from FY 2010, a second tranche of US$ 750 million…

There are general, and specific, provisions relating to use of funds. In general, the funds can be used for: (1) “just and democratic governance” – to the original list of 7 items, the Senate has added “(viii) the implementation of legal and political reforms in the FATA;” (2) “economic freedom”, and (3) “investments in people, especially women and children” – in the original list of 4 items, the Senate has inserted: “(iv) vocational training for women and access to microfinance for small business establishment and income generation for women” – interestingly, under the provision for “(v) higher education …” in this section, the Bill envisages the creation of an American University in Pakistan, on the pattern of similar universities in the Middle East (see Senator Kerry’s companion report on the Bill); and finally, the Senate has added, (4) “long-term development in regions of Pakistan where internal conflict has caused large-scale displacement..” There are also specific provisions: (1) “Up to $100,000,000 of the [total five-year] funds appropriated … should be used for police reform, equipping, and training”; and (2) Of the funds appropriated each year, up to $45 million can be used to supplement normal funds available for “Operational and Audit Expenses” of U.S. government agencies.

Wonder why KL Bill/Act has been criticized so strongly by “dumb-English” Pakistanis?

Syed M. Aslam is an APNS Award-winning Pakistani English language print journalist, commentator, analyst, article writer. Comments are welcomed at smaslam1@yahoo.com