November 22, 2005

NEW YORK/ISLAMABAD – International humanitarian agency Church World Service says it was encouraged by world pledges at Saturday's donor conference in Pakistan but voiced strong concern about increasing the burden of Pakistan's debt. The NGO also urged donors to convert pledge promises to immediate funds to aid survivors and avert further deaths following the country's devastating October 8 earthquake.

"We are heartened by the generosity of the world's major donors and particularly by the U.S.'s expanded pledge," says Church World Service Emergency Response Program Director Donna J. Derr, "but historically, following major disasters only about half of the pledges made by donors ever materialize.

"It would be a sign of hope for the future to break from that tradition with this disaster," she said.

Pakistan President Pervez Musharraf had asked for $5.2 billion for ongoing emergency relief, reconstruction and rehabilitation. More than 70 donor countries, financial institutions and aid organizations attended the conference and donors exceeded the plea, promising $5.8 in cash grants and loans.

The U.S. pledged $510 million, which includes $156 million already given.

But from Pakistan today CWS Pakistan/Afghanistan Regional Director Marvin Parvez said, "Approximately 68 percent of the pledges are loans- although donors are calling them soft loans. But," he said, "the hard reality is that Pakistan already has $32 billion in debt and is paying billions more in interest on the principle.

"I don't know how we can help the children of Pakistan by adding to the national debt," he said. "As a generation, as a population, our children were so mortally affected by the disaster itself. So many have died, lost parents, are injured and traumatized. The deepened burden of debt just makes the future a bit darker for them."

Yet, even cash grants are a two-edged sword, says Church World Service. Parvez said "Every dollar that comes in converts into Pakistan rupees 60, and this huge cash injection could raise inflation, not very helpful for the rural poor.

"There are no perfect answers," he said, "But it is important that the terms and conditions for grant contracts should be people friendly, not simply donor friendly."

‘Fine print on grant contracts important'

>From CWS's Washington office, Derr said "We are asking for >transparency and accountability from our government, so it is >appropriate that we expect the same from international donors. What >the fine print on grant contracts will say is very important," she >said, "including how much will go back to the donor country for >buying ‘technical expertise' and equipment, and how much actually >goes to the people in distress.""

Derr added, "We hope donor nations will not only expeditiously deliver on their promises now, to help save the many thousands still homeless or unserved, who are now facing the spread of disease and further illness or death as the Himalayan winter descends. More than 73,000 died from the quake and 3.3 million were left homeless.

"From our fifty years of service and partnership in Pakistan, Church World Service is also urging that world bodies stay in for the long haul with the people of Pakistan.

"So many officials who have visited the disaster areas have commented that they've never seen destruction and access complexities of this magnitude. Because of those challenges," she said, "we are still deep into the emergency relief stage. If it's taking this long for rescue and relief, we surely know that rehabilitation is going to take a long, long time."

Church World Service's Executive Director and CEO Rev. John L. McCullough visited northern Pakistan last week, to visit the stricken region and to offer support and comfort for CWS staff, many of whom lost family members in the quake.

The single biggest donor country at the conference was Saudi Arabia, which pledged $573 million in loans and grants, followed by the U.S.'s $510 million total pledge.

The World Bank and Asian Development Bank each pledged $ billion, primarily in the form of loans. The Islamic Development Bank increased its pledge from $250 million to $501 million.

Nearly 30 countries extended offers of help, with China pledging $316 million and Iran $200 million, according to Prime Minister Shaukat Aziz.

To date, from its international offices, Church World Service has provided material aid to more than 20,000 families in northern Pakistan. CWS is continuing to work, in conjunction with its partners through the international consortium Action by Churches Together, to deliver vital winter-insulated tents and heating equipment and to repair damaged water and sanitation systems.

CWS-Pakistan/Afghanistan's staff on the ground are managing a tent village in Bisyan, with 190 tents currently providing shelter for 161 families (1142 people). Equipped with a health center and a mosque, the CWS tent village is caring for approximately 60 patients daily.

In Balakot, Church World Service and Norwegian Church AID (NCA) are laying a galvanized water-supply pipe and repairing a 2.5-km of remaining pipeline. CWS and NCA are working in 10 locations across four districts to provide 49 water taps, over 275 latrines, 56 baths and 830 tents.

The CWS field team is also assessing more remote areas with the intention of reaching the most vulnerable survivors: widows, woman-headed households, orphans and the disabled. In order to reach women and reach them with appropriate cultural sensitivities, female team members are being deployed.

Church World Service