According to sources, the United States disbursed $433 million assistance to Pakistan under Kerry-Lugar bill during first seven months of the current financial year. It was agreed between the US and Pakistan that $650 million would be provided as budgetary support. "A total amount of $190 million was provided by US for the Citizen's Damage Compensation Fund after the recent floods, which was not additional to the amount pledged under the Kerry-Lugar bill."
During the first half of the current fiscal year (July-December 2010), Pakistan received $832 million from bilateral and multilateral donors. Out of $650 million assistance committed under the Kerry-Lugar bill an amount of $45 million has been provided to Higher Education Commission (HEC) and $75 million to the Benazir Income Support Programme (BISP).
"If we receive $500 million to $550 million from US under Kerry-Lugar bill against the pledged amount of $650 million even then we would be happy," sources added. The US Senate bill Kerry-Lugar - named for its authors, Democrat John Kerry and Republican Richard Lugar - focuses on economic development in the Islamic world's only declared nuclear power.
It envisages 1.5 billion dollars per annum for five years and comes along with stringent conditions on how to distribute and invest this money, including some conditions that angered Pakistan's military establishment. When asked whether the Obama administration would use the assistance under the Kerry-Lugar bill as leverage to seek the release of Raymond Davis, US Embassy spokesperson Courtney Beale denied it, saying: "there have been no changes to the Kerry Lugar Berman Act funding for Pakistan as a result of the shooting in Lahore."