1 Introduction
Why we held an inquiry into DFID's
programme in Pakistan
1. The Department for International
Development (DFID) plans to increase its bilateral programme in
Pakistan from £267 million in 2012-13 to £446 million
in 2014-15.[1] Making
Pakistan the largest recipient of UK aid is controversial given
Pakistan's unstable politics, large defence budget, historic levels
of significant corruption, tax avoidance, low levels of expenditure
on education and health programmes and its status as a middle
income country.
2. In 2012 we decided to undertake an
inquiry into DFID's programme in Pakistan, looking at the rationale
for the large increase in the budget, where it was to be spent,
whether it was necessary, whether it was actually wanted by Pakistan
and what results it could achieve. In addition, we wanted to know
what the risks were of such a large increase in spending on a
country programme by DFID and how they could be mitigated. The
Independent Commission on Aid Impact (ICAI) carried out an inquiry
into DFID's Bilateral Aid Programme in October 2012 and our report
draws on and follows up on its findings.[2]
3. It is also an appropriate time to
look at Pakistan as 2013 is an important year with the prospect
of holding the first ever elections where leadership passes from
one civilian government to another. In March the outgoing Pakistan
People's Party administration stood aside after completing a full
term in office making way for a caretaker government pending
the elections to be held in May. In other important changes the
head of the military, General Ashfaq Parvez Kayani and the Chief
Justice Iftikhar Muhammad Chaudhry stand down. Given its
economic problems, Pakistan is in discussion with the International
Monetary Fund about a possible further loan. The Pakistan authorities
have yet to make a formal request. Negotiations to date have centred
on the need for the Pakistan authorities to take policy actions
for macroeconomic stabilisation. In the meantime, the broadly
welcomed 2010 18th Amendment to Pakistan's constitution, devolving
Federal powers to the Provinces, has encountered problems due
to a lack of resources, expertise and capacity at the provincial
level to manage and deliver formally federal development programmes.[3]
4. Against this background of change,
this report looks at the arguments for and against an increase
of development assistance to Pakistan, considers the main programmes
DFID has in Pakistan and how they will be scaled up, and concludes
with our overall concerns. It follows on from our previous published
reports on Pakistan—The Humanitarian Response to the Pakistan
Floods in 2011[4]and the
Humanitarian response to natural disasters in 2006 which focused
on the response to the Pakistan earthquake. [5]
5. We took oral evidence from academics
and experts on Pakistan: Professor Anatol Lieven, Omar Wariach,
Michael Green and James Fennell. We also heard expert testimony:
on education, from Sir Michael Barber, Dr Matthew Nelson and Anwar
Akhtar; on Pakistan's taxation and governance from Dr Ehtisham
Ahmad and David Stephen. In our final evidence session we questioned
the Secretary of State for International Development, the Rt Hon
Justine Greening MP, and DFID's head of the Western Asia and
Stabilisation Division, Moazzam Malik specifically on DFID's work
in Pakistan. We would like to thank all of our witnesses, both
those who came to Westminster to give evidence in person and those
who sent in written evidence. We would also like to thank our
specialist adviser, Mr Eamoinn Taylor who has helped us with this
inquiry.
6. As part of the inquiry we travelled
to Pakistan in December 2012 where we met with Government of Pakistan
Ministers, DFID staff, NGO and Civil Society Organisations as
well as recipients of DFID funds at schools, midwife clinics
and social protection offices. A full programme for our visit
is appended to the report. We are grateful to of those in Pakistan
who gave up their time to meet us and to thank DFID Pakistan for
facilitating a comprehensive visit programme. We would also like
to thank those members of the Pakistan diaspora we met in Derby
at the Jobs Education Training (JET) centre organised by the Executive
Director, Mohammed Sharief, to hear their views of development
assistance to Pakistan.
1 Ev 55 Back
2
ICAI, Report 15 Evaluation of DFID's Bilateral Aid to Pakistan,
October 2012 Back
3
Coffey International Development in association with the IDL Group,
Pakistan Country Governance Analysis 2011, April 2011and
The Economist, Plugging leaks, poking holes. Who will pay
for Pakistan's state? 8 December 2012 Back
4
House of Commons International Development Committee, The Humanitarian
response to the Pakistan Floods, Seventh Report of Session 2010-12
HC 617 Back
5
House of Commons International Development Committee, Humanitarian
response to natural disasters, Seventh Report of Session 2005-06
HC1188 Back
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