Saudis appear reluctant to pledge aid

WASHINGTON - The United States efforts to raise US$4-5 billion for Pakistan at an aid conference in Tokyo on Friday is coming into conflict with Saudi Arabia, which is showing only muted interest in supporting President Asif Ali Zardari, a major American newspaper reported on Wednesday. Citing officials involved in the deliberations, The Wall Street Journal said Riyadh had close ties with PML-N chief Nawaz Sharif, who had emerged as a serious challenger to Zardari.
The big outstanding question about the conference is Saudi Arabia, the newspaper quoted a senior official as saying. They are closely aligned with Nawaz Sharif.
The former prime minister spent much of nearly a decade in exile in Saudi Arabia, before returning to Pakistan in late 2007.
Pakistan appears certain to get at least US$4 billion from the conference, the Journal said. If Saudi Arabia doesnt contribute to that total, it could undermine Islamabads efforts to meet its financial obligations.
Last November, Pakistan was forced to turn to the International Monetary Fund for US$7.6 billion in loans to avert a balance-of-payments crisis.
A pass by Saudi Arabia would also send a signal that it doesnt support the Zardari government, correspondent Jay Solomon wrote. Nawazs political capital has increased significantly since opposition protests last month led to concessions by Zardari including an invitation to join his partys government, which the opposition leader has so far declined.
Riyadh took part in a meeting last week in Dubai to address Pakistans finances but declined to make a formal pledge to Islamabad, the paper said, citing participants in the talks. An official at the Saudi Arabia Embassy in Washington declined to comment on Tuesday.
Saudi Arabia has traditionally been among Pakistans largest aid donors and strategic allies, it was pointed out. During the 1980s, Saudi Arabia cooperated closely with Washington and Islamabad to expel Russian troops from Afghanistan.
The US has long voiced skepticism about Nawaz, citing his ties to Islamic parties, the newspaper said, noting that Pakistan Peoples Party is secular and largely viewed as pro-Western.
Saudi Arabia is sending a delegation to the Friends of Pakistan conference in Tokyo, and an Arab diplomat said he would be surprised if Riyadh didnt pledge some money.
The US and Japan are each expected to pledge US$1 billion to Zardaris government on Friday, the paper said. The European Union, the UK and the United Arab Emirates are each expected to pledge as much as US$500 million.
This support is crucial to assure the Pakistani people that the international community is supporting its fight against extremism, Hussain Haqqani, Pakistans ambassador to the US, was quoted as saying.
The Obama administration is developing benchmarks that Pakistan must meet to receive continued assistance, something Zardaris government is fighting. Washington wants to see Islamabads sustained commitment to democracy and the fight against Al Qaeda.
In addition to the US$1 billion expected to be pledged on Friday, the US Congress has committed to provide US$7.5 billion to Islamabad over the next five years, provided it meets these benchmarks.
The Tokyo conference could also serve as another forum for senior US and Iranian officials to meet. Richard Holbrooke, the Obama administrations special representative for Pakistan and Afghanistan, will head the US delegation. Iran said it is sending Foreign Minister Manouchehr Mottaki.