June 15, 2008	Sunday	Jamadi-us-Sani 10, 1429

WASHINGTON, June 14: Pakistan is close to getting $500 million from the World Bank and is also seeking 500,000 tons of wheat from the United States to deal with the food and energy crisis threatening to cripple its economy.

The wheat will be provided under PL-480, a US food assistance programme set up for the world’s poorest states unable to feed their people.

Pakistan’s effort to seek financial and food assistance from the World Bank and the United States was revealed by US Assistant Secretary of State Richard Boucher who assured Islamabad of Washington’s continued support to its efforts for dealing with the economic crisis.

“They’re talking to the World Bank about the loans and help and we’re involved in that as well,” a transcript released by the State Department during the weekend quoted Mr Boucher as saying.

Mr Boucher, who looks after South Asian affairs at the State Department, also expressed a strong US desire to help the democratic process in Pakistan.

“We’re looking in the longer term at how we take advantage of the democratic opportunity to offer broader and deeper support to Pakistan generally,” he said.

“But they’re also dealing with some immediate problems, and we are taking what steps we can to help them with that. And we’re looking at things like food problems and financial problems and seeing what we can do.”

Sources in the World Bank told Dawn that a World Bank and IMF delegation visited Islamabad last month for talks on a $500 million one tranche, development-support credit. Negotiations completed in early June.

The proposal now awaits a final approval from the bank’s board of directors, which is expected to give its approval by the end of this month or early July.

Pakistan also appealed for food assistance from the US earlier this month when M. B. Abbasi, a special envoy of the prime minister, visited Washington.

He brought a letter from Asif Ali Zardari for Senator Tom Harkin, who chairs the US Senate Agriculture Committee, requesting 500,000 tons of wheat to handle the food crisis.

Later, Pakistan submitted a formal request for food assistance under the PL-480 US food programme. Pakistan received a lot of assistance under this programme in the 1960s but opted out of it, claiming that it produces enough grains to feed its people.In 2001, when faced with a famine, Pakistan received a one-time assistance of $70 million under PL-480.

Under this programme, the wheat has to be purchased in the United States and shipped to the recipient.