A new report by a U.S. research center says the United States should hold back much of its $7.5 billion Pakistan aid package until Pakistan adopts reforms.
The report by the Washington-based Center for Global Development says the caution is most advisable in sectors where the U.S. has committed to disbursing its aid funding primarily through government channels.
The study acknowledged that setting conditions for assistance is an “extremely sensitive subject,” but said delaying disbursement in certain sectors will benefit both the Pakistani reform process and the aid's ultimate effectiveness.
The Center for Global Development said spending the money now would provide only temporary fixes that make it easier for Pakistani officials to put off tough decisions.
The report also calls for a greater focus on trade, urging the U.S. government to offer duty-free access to U.S. markets for all Pakistani exports for at least the next five years.
U.S. lawmakers have been reviewing ties with Pakistan since Osama bin Laden was found in a garrison Pakistani city, raising questions about the country's commitment to combating terrorism.
The center's president and lead author of the report, Nancy Birdsall, said the United States is “way off course” in Pakistan. She said the U.S. is heavily focused on security, while neglecting what she described as “low-cost, low-risk investments” in jobs, growth and democracy building.
The study also recommends the U.S. separate the Pakistan development program from the Afghanistan program and the Pakistan security program. It says the Obama administration's integrated Afghanistan-Pakistan approach has undermined the development mission in Pakistan.
The $7.5 billion aid package to Pakistan was authorized in 2009.