KARACHI, Aug 12: Pakistan and the United States have a longstanding partnership and though it has been a bit of roller coaster at times, both the countries are trying their best to smoothen it, US Ambassador Nancy Powell said on Tuesday.

Speaking at the Guest Speakers’ session at the Institute of Business Administration, she said the announcement of $3 billion aid in five years made by the US president during his meeting with President Gen Pervez Musharraf at Camp David was the best sign of strengthening of relations.

She said that the aid package spanning over five years was an unusual thing for the US system as the Congress there mandated one-year budget at a time. She said the US administration’s commitment for five years showed the importance that the US gave to Pakistan.

She said she recently signed a $1 billion cheque that went to reduce Pakistan’s debt to the US by one-third.

She said work was being done to reschedule the rest of the debt.

She said security and stability, whether in New York or Karachi, were only possible if the war against poverty, disease and ignorance was won.

She said the US and Pakistan were working together on a number of fronts, including poverty reduction, economic development, education, regional stability, military cooperation, non-proliferation, human resource development and democracy.

Efforts were being made to reduce some of the trade disputes that the US had with Pakistan and to try to expand American investment and trade with the country, she said.

She said the US aid programme focused primarily on education, particularly early childhood education and teachers’ training, provision of good healthcare and strengthening of democracy.

She said that though initial funding for the IBA was provided by the US, later Pakistanis picked up and they had brought the institution to the position where it was today.

She said some money was being put in the Khushhali Bank for programmes in Balochistan and rural Sindh and planning was being done to provide scholarships to the brightest students, who were willing to work in micro-finance community in Pakistan, to attend the IBA.

When Ms Powell asked the audience what the country should do with the $300 million aid that was to come from the US each year, members of the audience said it should be invested in primary education, infrastructure, rural development, organizing the informal sector, setting up of business for skilled workers under a micro-finance scheme and poverty reduction.

IBA chief Prof Danishmand said the IBA had attracted the best minds in the country because of its adherence to merit, integrity and efficiency.

He said the country had not done much in achieving productivity, whereas the US economy grew at 3.5 per cent per year.

A BBA student, Tabinda Khursheed, and others also spoke.

Ms Powell was accompanied by US Consul-General Douglas Rohn and Mark Ward of the USAID.