U.S. offers Pakistan 7 billion in non-military aid.

This is from The News (Pakistan)The U.S. is obviously abandoning Musharraf. The new government is much more worried about U.S. violation of Pakistani sovereignty and has quite different ideas about how to deal with terrorists. Note that the provocative drone attacks are to cease and that negotiations with the border states is envisioned. The U.S. may not be happy with this but leverage may be limited. There seems to be no clear policy any more from the U.S. side.

US offers Pakistan $7 bn in non-military aid




WASHINGTON: The US has promised to curb air strikes by drones against suspected militants in Pakistan as part of a joint counter-terrorism strategy agreed with the new civilian government in Islamabad, the Guardian has learnt.

That strategy will be supported by an aid package potentially worth more than $7 billon (£3.55 billon), which is due to go before Congress for approval in the next few months. The package would triple the amount of American non-military aid to Pakistan, and is aimed at "redefining" the bilateral relationship, US officials say.

Pakistan will also be given a "democracy dividend" of up to $1 billon, a reward for holding peaceful elections and forming a coalition government. Of that, $200 million could be approved in the next few days.

The aid package, being put together by Democratic Senator Joseph Biden, will mark a decisive break in the US policy on Pakistan, which for much of the past nine years focused on President Pervez Musharraf and the Pakistani military as Washington's primary partners in the "war on terror". Officials in Washington said on Wednesday that the shift had already been made.

"Senator Biden wants to show the relationship is much broader than a military one, and that we are willing to sustain it over time," one of the senator's senior aides said on Wednesday. A US administration official said: "Each day Musharraf's influence becomes less and less. Civilians are in control. People aren't meeting with Musharraf any more ... we are very pleased with the new civilian government."

Pakistani officials say much of the new counter-terrorism aid will be spent on civilian law enforcement institutions, such as the interior ministry, the Intelligence Bureau and the Federal Investigation Agency, rather than being channelled almost exclusively through the Army and the military-run Inter-Services Intelligence (ISI).

The new government says it has also won American support for its policy of opening a dialogue with tribes along the Afghan border, led by the Awami National Party. The new understanding on air strikes by US Predator drones is seen in Islamabad as a critical benchmark for the new relationship.

In January senior US intelligence officials flew to Islamabad and struck an agreement with Musharraf to give the American military a freer hand in the use of Predators against targets in Pakistan's tribal areas, which have become havens for al-Qaeda and other foreign Jihadists as well as Taliban forces fighting Nato forces and the government in Afghanistan, according to The Guardian.

The subsequent increase in Predator strikes – estimates of the number range up to eight – caused outrage in Pakistan. Britain also broke with Washington over the reliance on air strikes often guided by uncertain intelligence.

Pakistani officials say they have been given assurances by Washington that there will be close consultation with the civilian government, not with Musharraf, before any future strikes. However, the use of Predators is held as a closely-guarded secret and US intelligence is reluctant to share information about targets, and there is some skepticism in Islamabad over whether the deal will stick.

"We'll have to take them at their word, won't we," said Information Minister, Sherry Rehman, in an interview in Islamabad. She added that Washington's previous emphasis on ties to Musharraf and the Pakistani military "hasn't provided the results that were supposed to happen on the ground".

The US has given Pakistan about $10 bn in military aid during the past seven years, but it has not diminished the Taliban insurgency in Afghanistan, while Pakistani extremism is also on the rise. Some officials in Washington believe most of the money has been used to build up Pakistan's conventional forces for use in a possible future conflict with India, rather than spent on counter-insurgency.

Furthermore, much of the money being used for counter-terrorism is being misspent, both Pakistan and US government officials say. As an example they say that Musharraf distributed the $25 million reward money for capturing or killing "high value" al-Qaeda targets in the form of an "inverted pyramid".

"A few thousand would go to the police constable on the ground, who actually spotted the guy, but the millions go to the generals up the chain," a Pakistani official said. No wonder, he added, the tip-offs stopped coming in and the number of high-profile arrests dropped.