Pakistan may seek more US funds

RAWALPINDI: Pakistan may seek proportionate enhancement of the quantum of American assistance for the next fiscal year in an attempt to neutralise the impact of the 'Buy America' policy on its development programme. Finance Minister Mohammad Shoaib, assisted by a strong team of officials, is due to brief the new American administration in Washington on Pakistan's Second Five-Year Plan later this month. Addressing his weekly Press conference, Mr Shoaib said that as far as the purchase of capital goods, stores and equipment was concerned, Pakistan would face difficulties if the quantum of American aid was not increased. This drop in the quantity of imported American capital goods, he explained, would be due to higher prices prevailing in America. Another effect, he pointed out, would be repercussions on Pakistan's pricing structure. This, he said, would be caused by variations in the American market and its pricing structure. The first problem, Mr Shoaib explained, could be solved by making more foreign exchange available. The second problem, he said, could be met by Pakistan placing a smaller deposit of counterpart funds. Both these questions, he said, would be under discussion in Washington. Mr Shoaib emphasised that though there have been no formal assurances, "we hope to reach an agreement on the 'Buy America' policy". Mr Shoaib said that during his talks with the American government, he would have the assistance of G. Ahmad, Chairman, Planning Commission, who would accompany him on his tour of the United States. Zahirudidn Ahmad, Joint Secretary of the Minister of Finance, would also accompany the minister. Mr Shoaib said the World Bank-sponsored consortium would most probably meet in the second half of May to consider further Pakistan's needs of foreign assistance for its Second Five-Year Development Plan. "Not only possibility but probability", was the minister's reply when asked if there was still a possibility of oil agreement with the Soviet Union.