Better use of foreign aid

HIS refers to Mr Sultan Ahmed’s article (April 13), describing how the UN wants its economic assistance to be made more effective and less wasteful. Unfortunately this cannot be so in Pakistan because  of excessive corruption.

Pakistan already has a debt of US$38 billion. This amount stand  injected in Pakistan’s economy so far but its impact on the social fabric of the country is not visible. A super rich class has been created and the rich are becoming richer and the poor, poorer.

The following instances will show how borrowed money has been wasted vand / or pocketed:

— World Bank loan of $55 million for officials’ training abroad (Aug 25, 2005). Who has benefited? Is good governance visible — $350 million ADB loan for “access to justice” in Dec 2001.

“Access to justice” is not any better today after receiving the loan?

Also look at the following loans recently approved:

— ADB loan of Rs. 24 billion for development projects in Karachi and further Rs. 790 million for studies. (April 9).

— WB loan of Rs 18 billion for the Punjab government for improvement and maintenance of its huge irrigation network. (April 14).

Karachi is the mega metropolitan city of Pakistan and should be able to finance its projects out of the revenue earned. Similarly users of irrigation network facilities should pay for their maintenance.

As usual most of the loan amount is likely to be embezzled.Taking of further loans from foreign financing institutions should be stopped forthwith. But since the ruling class is itself the beneficiary of loans, the government is not likely to act.

The Supreme Court need to take notice of the situation, or an  NGO / philanthropist may file a petition in the high court to stop taking of further loans and save the coming generations from the responsibility of paying off the loan.