79–010 

Calendar No. 85 

111TH CONGRESS REPORT " ! SENATE 1st Session 111–33 

ENHANCED PARTNERSHIP WITH PAKISTAN ACT OF 2009 

JUNE 23, 2009.—Ordered to be printed 

Mr. KERRY, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 962] 

The Committee on Foreign Relations, having had under consideration a bill S. 962, to authorize appropriations for fiscal years 2009 

through 2013 to promote an enhanced strategic partnership with 

Pakistan and its people, and for other purposes, reports favorably 

thereon with amendments and recommends that the bill as amended do pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 1 

III. Discussion ....................................................................................................... 2 

IV. Cost Estimate ................................................................................................. 7 

V. Evaluation of Regulatory Impact .................................................................. 10 

VI. Changes in Existing Law .............................................................................. 10 

I. PURPOSE

The purpose of this legislation is to authorize appropriations for 

fiscal years 2009 through 2013 to promote an enhanced strategic 

partnership with Pakistan and its people. 

II. COMMITTEE ACTION

S. 962 was introduced on May 4, 2009 by Senators Kerry and 

Lugar. At a meeting on June 16, 2009, a Managers’ Package of 

amendments was adopted by voice vote. By a roll-call vote of 16– 

0, the committee ordered the bill favorably reported. Members voting ‘‘aye’’ were Sens. Kerry, Lugar, Dodd (by proxy), Corker, Boxer 

(by proxy), Feingold, Menendez, Risch, DeMint, Casey, Isaakson, 

Gillibrand, Cardin, Barrasso (by proxy), Shaheen, and Kaufman. 


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III. DISCUSSION

A. SUMMARY

S. 962, the Enhanced Partnership with Pakistan Act of 2009, 

seeks to transform the relationship between the United States and 

Pakistan from a transactional, tactically-driven set of short-term 

exercises in crisis-management, into a deeper, broader, long-term 

strategic engagement. The legislation aims to properly balance the 

relationship between United States and Pakistan by acknowledging 

and supporting the national security interests of the United States 

as well as our economic and geopolitical interests. United States 

economic and military assistance for Pakistan enhances our mutual 

security while helping to build economic and political stability in 

a country important in a regional and strategic sense. Economic assistance is as critical an element as strengthening the capacity of 

the Pakistan military to counter terrorism, especially for projects 

that provide direct and concrete benefit to Pakistani citizens as a 

whole. The overall level of economic assistance authorized would be 

raised substantially, with the bulk of this aid intended for projects 

such as schools, roads, medical clinics, and infrastructure development. 

Specifically, the legislation: 

• Authorizes $7.5 billion over the next 5 fiscal years ($1.5 billion 

annually) under the Foreign Assistance Act. 

• Advocates an additional $7.5 billion over the subsequent 5 

years, subject to improvements in the political and economic 

climate in Pakistan. 

• Conditions military grant assistance and Foreign Military Financing assistance beginning in 2010, and Foreign Military 

Sales beginning in 2012, on certification by Secretary of State 

that Pakistani security forces: 

• are making concerted efforts to prevent al Qaeda and associated terrorist groups (including Lashkar-e Taiba and Jaishe Muhammad) from operating in the territory of Pakistan; 

• are making concerted efforts to prevent the Taliban from 

using the territory of Pakistan as a sanctuary from which to 

launch attacks within Afghanistan; and 

• are not materially interfering in the political or judicial 

processes of Pakistan. 

• Prioritizes assistance for the following general purposes: 

• Just and democratic governance; 

• Economic development; and 

• Investment in people. 

• Requires the following reports: 

• Secretary of State must within 45 days of passage of the 

legislation, or September 15, 2009, provide a comprehensive 

Pakistan Assistance Strategy Report to Congress, that contains 

specific benchmarks to measure progress on a qualitative 

basis. The submission of the report is to be preceded by 15 day 

consultation period for Congress; 


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• Secretary of State must within 90 days of the submission 

of the Pakistan Assistance Strategy Report, submit the first of 

ongoing semi-annual reports to Congress that describe the uses 

or intended uses and impact of assistance authorized for Pakistan; 

• Secretary of State (in consultation with other officials) 

must develop and provide to Congress a comprehensive strategy for the Afghan-Pakistan border area; 

• The Secretary of State, after consultation with the Secretary of Defense and the Director of National Intelligence, 

must submit an annual report on security forces’ progress. 

• Urges accountability and transparent reporting of Coalition 

Support Funds. 

• Urges a reorientation of engagement towards the Pakistani 

people rather than merely towards the Pakistani government 

(civilian or military) 

The significant increase in assistance authorized by this legislation is intended to broaden and deepen non-military programs 

across a country of some 176 million people, where less than 50 

percent of the population can read and write and whose Global 

Hunger Index ranking is nearly on par with that of North Korea. 

The legislation highlights the essential economic assistance pillar 

to achieve mutual goals of improved human security through basic 

services, education, economic opportunity, political participation 

and human rights. The legislation contains Sense of Congress language urging that security-related assistance be provided in close 

coordination with the Government of Pakistan, designed to improve 

the Government’s capabilities in areas of mutual concern, and 

maintained at a level that will bring significant gains in counterterrorism, counterinsurgency, and regional harmony. The legislation does not preclude an increase or a decrease in the level of security-related aid. Any use of funds contained in this legislation for 

the purpose of augmenting Pakistan’s nuclear weapons program 

would be directly contrary to Congressional intent. 

The legislation mandates that funds appropriated or otherwise 

made available to carry out section 5 shall be utilized to the maximum extent possible as direct expenditures for economic and development projects and programs. 

B. ANALYSIS OF SELECTED SECTIONS

Section 5.—Use of Funds 

In light of the large increase in assistance authorized by this legislation, the committee attaches great importance to ensuring that 

the assistance authorized will be spent effectively and efficiently. 

The legislation contains a number of provisions designed to promote this objective. 

• Before any money authorized by the legislation may be spent, 

the legislation requires the Administration to develop and provide to the Congress an assistance strategy, setting out the objectives to be achieved with the assistance, the programs and 

projects the Administration intends to implement to achieve 

these objectives, and the criteria that the Administration will 

use to measure the effectiveness of the assistance. The AdminVerDate Nov 24 2008 00:26 Jun 24, 2009 Jkt 079010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR033.XXX SR033

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istration must consult with the Congress on its proposed strategy, including the criteria and benchmarks that will be used 

to assess the effectiveness of the assistance, 15 days before obligating any assistance authorized under the legislation. 

• Once money begins to flow, the legislation requires that the 

Administration report every six months on how the money is 

spent and what impact it is having, measured with reference 

to the criteria the Administration establishes in its strategy report. 

• Before the Administration may spend more than half of the 

$1.5 billion authorized in any fiscal year, the legislation requires that it certify that the assistance provided to date has 

made or is making substantial progress toward the principal 

objectives of assistance contained in the Administration’s strategy report, subject to a waiver that may be exercised to permit 

assistance in the national security interests of the United 

States. 

• The legislation permits up to $30 million annually to be made 

available to the Inspectors General of the Department of State, 

the United States Agency for International Development and 

other relevant Agencies to provide audits and program reviews 

of projects funded pursuant to this section. These funds are in 

addition to other funds already available to these offices in 

their regular budgets. The committee has provided these additional resources because it believes that the significant growth 

of assistance contemplated by this Act warrants close oversight 

by Inspectors General. In providing these funds, the committee 

also attaches importance to developing the capacities of the existing Inspector General offices in federal agencies to oversee 

major assistance programs, rather than seeking to create ad 

hoc oversight mechanisms. 

• The legislation also requires the Comptroller General to submit a report annually on the implementation of the Administration’s assistance strategy, including any GAO recommendations for improving efficiency or effectiveness. 

The legislation also provides that up to $10 million annually may 

be used for administrative expenses of Federal departments and 

agencies in connection with the provision of assistance authorized 

by this section. These funds are intended to supplement, not replace, existing funds authorized and appropriated for such purposes. It is the intent of this legislation that this provision provides 

important flexibility to the U.S. Agency for International Development, which has a limited overall budget for operational expenses. 

Given the magnitude of the assistance and the critical nature of 

the purpose of such funds, the committee expects that the Agency 

will, however, endeavor to keep administrative expenses to a minimum. 

The legislation provides that certain reporting requirements 

linked to the use of authorized assistance funds will sunset on September 30, 2013, the end of the last fiscal year for which funds are 

authorized in the bill. The committee intends that in the event additional assistance is authorized for fiscal years after 2013, as is 

specifically contemplated by Section 5(d) of the bill, appropriate exVerDate Nov 24 2008 00:26 Jun 24, 2009 Jkt 079010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR033.XXX SR033

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tensions of these reporting requirements will accompany the authorization for such additional assistance. 

Subsection (F)(1)(A).—Just and Democratic Governance 

Pakistan has experienced a series of governance swings between 

military and civilian rule and punctuated by coups and emergency 

decrees. Democratic governance with independent government institutions have been limited in time and impact. United States assistance authorized by this Act is intended to provide support for 

good governance by helping to build the capacity of independent, 

fair, and capable institutions of government such as the judiciary 

and parliament. This Act intends that up to $100 million annually 

of the authorized funds be used for police reform, equipping, and 

training. 

Subsection (F)(1)(B).—Economic Freedom 

Pakistan ranks 136 out of 171 in the Human Development Index 

(HDI) and despite GDP growth exceeding 6 percent in recent years, 

is currently in the midst of a financial crisis associated with the 

global economic recession. Nearly 25 percent fall below the poverty 

line, and population growth rates are exceeding the economic capacity to sustain poverty reduction and development gains made 

since the turn of the century. United States assistance authorized 

in this Act is intended to provide additional support, considering 

the magnitude of international assistance for the same purposes, to 

sustain strong economic growth. Rural and agricultural development are key elements of Pakistan’s overall economic progress and 

such programs should include support for micro-finance, small and 

medium-sized infrastructure projects as well as effective energy 

and water developments. A key priority for United States assistance should be the strengthening of cross-border trade and appropriate economic development, especially along the border regions 

with Afghanistan. 

Subsection (F)(1)(C).—Investments in People 

PRIMARY AND SECONDARY EDUCATION

One of the most critical long-term investments in any society is 

that made in the education of its children. Pakistan has significant 

areas of potential in building a comprehensive public education system. Nationally, the literacy rate is less than 50 percent, but women’s literacy is less than 37 percent. In some areas of the country 

women’s literacy is no more than 3 percent. In authorizing assistance for broad-based public primary and secondary education and 

vocational training for both boys and girls, the Act highlights concern for the lack of modern educational opportunities and the significant gender disparity in school enrollment in Pakistan. The Act 

intends that assistance facilitate access to education for all children 

in Pakistan, and especially for young women and girls, in order to 

raise literacy rates and decrease drop-out rates. Implicit in the rationale of the Act is an understanding that the provision of school 

meals can promote school enrollment and increasing academic performance, and programs to provide school meals would be in keeping with the intent of the Act. 


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HIGHER EDUCATION

If successful, United States assistance will help drive demand for 

higher education in Pakistan. The existing system of tertiary education is inadequate to the current demand for civil servants, entrepreneurs, doctors, teachers and professionals of all kinds, and 

will only continue to fall short given rapid rates of growth. With 

a population exceeding 175 million, of which 38 percent are younger than 15, and an annual population growth rate exceeding 2 percent, Pakistan’s development will require more vocational schools, 

colleges and universities. Since 2003 USAID has supported the revitalization of the well-respected 145-year-old Forman Christian 

College in Lahore, after 30 years of neglect as a nationalized institution. This chartered university provides a much-valued American 

style four year baccalaureate program, as well as Master’s degrees, 

as a non-sectarian, co-educational institution for over 4,000 students. It has garnered the support of the Higher Education Commission of Pakistan and which has indicated its intent to rapidly 

expand access to higher education. Assistance under this Act is intended to continue to enable and expand programs and institutions 

of higher education such as FCC. 

AMERICAN UNIVERSITY

Whereas scholarship and fellowship programs are an important 

part of United States assistance and positively impact relations between our people, it is cost-effective to develop local capacity in 

American-style higher education in order to broaden cultural understanding. There is a long and remarkable history of American 

schools and universities around the world. Universities that emulate American curricula such as in Beirut, Lebanon and Cairo, 

Egypt, have been successfully drawing talented students and producing leaders in government, business, science and education. 

They have produced leaders such as Salam Fayyad, the Palestinian 

Prime Minister; Ali Al-Naimi, Saudi Arabian Minister of Petroleum; Dr. Ashraf Ghani, former Afghan Finance Minister and 

World Bank official; and former United States Ambassador to the 

United Nations Zalmay Khalilzad. It is intended that assistance 

under this Act be used to explore the opportunity to establish an 

American University in Pakistan. 

Section 7.—Coalition Support Funds 

Coalition Support Funds provide essential support for military 

operations of the Government of Pakistan to protect U.S. and allied 

logistic operations in support of Operation Enduring Freedom. 

Such resources are of such a magnitude that the process must be 

transparent and the monitoring must provide the highest degree of 

assurance that the program is properly being used for the purposes 

intended. This section includes a provision that the Secretary of 

Defense should submit to Congress a semi-annual report on the use 

of Coalition Support Funds. 

C. CONCLUSION

A premise for this plan is a simple thought-exercise: Following 

the earthquake in Kashmir in 2005, the United States devoted 

nearly $1 billion to relief efforts, and reaped a greater reward in 


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popular support than any amount of public diplomacy could generate. The sight of American servicemen and women saving the 

lives of Pakistani citizens was worth many times the cost of operating the Chinook helicopters. For a brief period, America was 

challenging the terrorists in a true battle of hearts and minds—and 

winning. S. 962 seeks to sustain such a relationship and thereby 

materially and clearly demonstrate the true friendship of the 

American people for the Pakistani people without waiting for a natural (or man-made) disaster to compel a response. 

V. COST ESTIMATE

In accordance with Rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee provides this estimate of the 

costs of this legislation prepared by the Congressional Budget Office. 

UNITED STATES CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 19, 2009. 

Hon. JOHN F. KERRY, 

Chairman, Committee on Foreign Relations, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 962, the Enhanced Partnership With Pakistan Act of 2009. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is John Chin. 

Sincerely, 

DOUGLAS W. ELMENDORF

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

June 19, 2009. 

S. 962 

Enhanced Partnership With Pakistan Act of 2009 

AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN

RELATIONS ON JUNE 16, 2009

SUMMARY

S. 962 would authorize the appropriation of up to $1.5 billion a 

year over the 2009–2013 period—a total of up to $7.5 billion over 

five years—for nonsecurity assistance to Pakistan. CBO estimates 

that implementing S. 962 would cost about $4.8 billion over the 

2010–2014 period, assuming appropriation of the authorized 

amounts. Enacting the bill would not affect direct spending or revenues. 

S. 962 contains no intergovernmental mandates as defined in the 

Unfunded Mandates Reform Act (UMRA) and would not affect the 

budgets of state, local, or tribal governments. 

S. 962 could impose a private-sector mandate, as defined in 

UMRA, on exporters of major defense equipment. If the Secretary 


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of State does not certify that the security forces of Pakistan have 

met certain security standards by 2012 or does not waive the requirement for such certification, the bill would prohibit the export 

of major defense equipment to Pakistan. CBO cannot determine 

whether the cost of the mandate, if imposed, would exceed the annual threshold established in UMRA for private-sector mandates 

($139 million in 2009, adjusted annually for inflation). 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of S. 962 is shown in the following table. The costs of this legislation fall within budget function 150 (international affairs). 

Changes in Spending Subject to Appropriation Due to S. 962* 

By Fiscal Year, in Millions of Dollars 

2010 2011 2012 2013 2014 2010– 

2014 

Authorization Level ............. 1,500 1,500 1,500 1,500 0 6,000 

Estimated Outlays ............... 301 858 1,150 1,355 1,151 4,815 

* In addition, S. 962 would authorize the appropriation of up to $1.5 billion for nonsecurity 

assistance to Pakistan in 2009. However, the Congress has already appropriated amounts for 

nonsecurity assistance to Pakistan for fiscal year 2009, enacted in the Omnibus Appropriations 

Act, 2009 (Public Law 111–8) on March 11, 2009. Additional appropriations for such assistance 

for fiscal year 2009 will be provided by the Supplemental Appropriations Act, 2009 (H.R. 

2346), which was cleared by the Congress on June 18, 2009. CBO assumes there would be no 

additional funding for assistance to Pakistan for this year. 

BASIS OF ESTIMATE

For this estimate, CBO assumes that the bill will be enacted 

near the end of fiscal year 2009, that the authorized amounts will 

be appropriated each fiscal year over the 2010–2014 period, and 

that outlays will follow historical spending patterns for existing 

programs. 

Assistance to Pakistan 

Section 5 would authorize the appropriation of up to $1.5 billion 

a year over the 2009–2013 period for assistance programs in Pakistan and would require the administration to prepare semi-annual 

reports on the implementation of those programs. In general, those 

funds would be used for projects intended to benefit the people of 

Pakistan, including those that promote democratic governance, economic development, civil society, and recovery from internal conflict. In addition, of the amounts authorized for a fiscal year, up to 

$10 million could be used to administer those programs, up to $30 

million could be used to audit those programs, and up to $5 million 

could be used to establish a Chief of Mission Fund that would address urgent humanitarian needs. CBO expects that the $1.5 billion authorized to be appropriated 

for 2009 would not be provided. The Congress has already appropriated amounts for nonsecurity assistance to Pakistan for 2009, 

enacted in the Omnibus Appropriations Act, 2009 (Public Law 111– 

8) on March 11, 2009. Additional appropriations for such assistance 

for 2009 will be provided by the Supplemental Appropriations Act, 

2009 (H.R. 2346), which was cleared by the Congress on June 18, 

2009. In total, those appropriations provide approximately $1.3 bilVerDate Nov 24 2008 00:26 Jun 24, 2009 Jkt 079010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\SR033.XXX SR033

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lion for nonsecurity assistance to Pakistan in 2009. CBO assumes 

there would be no additional funding for assistance to Pakistan for 

this year. Assuming appropriation of the amounts authorized for 

2010 through 2014, CBO estimates that implementing this provision would cost about $4.8 billion over that period. 

Limitations on Nonsecurity Assistance 

The bill would limit the availability of amounts authorized to be 

appropriated in section 5 unless the Secretary of State submits to 

the appropriate congressional committees a report describing U.S. 

policy and strategy with respect to assistance to Pakistan. In addition, the bill would limit the availability to half of the amounts authorized to be appropriated each year unless the President’s Special 

Representative to Afghanistan and Pakistan certifies that assistance provided under the Act is helping Pakistan make substantial 

progress toward achieving the objectives contained in the Pakistan 

Assistance Strategy Report mentioned above. The bill would allow 

the Secretary of State to waive that certification requirement in the 

interests of national security. CBO expects that the Secretary 

would exercise the waiver authority if the President’s Special Representative were unable to make the necessary certification, and 

thus, implementing that provision would have no significant effect 

on spending subject to appropriation. 

Limitations on Security Assistance 

Section 6 would limit certain military assistance after 2009 and 

arms transfers after 2011 to Pakistan unless the Secretary of State 

certifies that Pakistani security forces are not materially interfering in their country’s judicial or political processes and that they 

are making concerted efforts to prevent terrorist and militant 

groups from operating in Pakistan or using it as a sanctuary. The 

bill would allow the Secretary to waive those certification requirements in the interests of national security. CBO expects that the 

Secretary would exercise the waiver authority if she were unable 

to make the necessary certification, and thus, implementing that 

section would have no significant effect on spending subject to appropriation. 

ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

S. 962 contains no intergovernmental mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

ESTIMATED IMPACT ON THE PRIVATE SECTOR

S. 962 could impose a private-sector mandate, as defined in 

UMRA, on exporters of major defense equipment to Pakistan if the 

Secretary of State does not certify that the security forces of Pakistan have met certain security standards by fiscal year 2012. If the 

Secretary does not issue such certification, the bill would prohibit 

the necessary licenses and programs for private entities to export 

major defense equipment to Pakistan. However, the bill would 

allow the Secretary of State to waive the prohibition of exports of 

major defense equipment if the Secretary determines it is important to the national security interests of the United States to provide such waiver. CBO expects that the Secretary would exercise 


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such a waiver. In the event that such exports are prohibited, the 

cost to comply with the mandate would be the foregone net income 

attributed to the sale of major defense equipment to Pakistan. According to industry experts and the Defense Security Cooperation 

Agency, the value of major defense equipment exported to Pakistan 

has varied from hundreds of millions of dollars per year to billions 

of dollars per year. Because of uncertainty about the future income 

from such sales, CBO cannot determine whether the cost of the 

mandate, if imposed, would exceed the annual threshold established in UMRA for private-sector mandates ($139 million in 2009, 

adjusted annually for inflation). 

Estimate prepared by: 

Federal Costs: John Chin. 

Impact on State, Local, and Tribal Governments: Burke Doherty. 

Impact on the Private Sector: Jacob Kuipers. 

Estimate approved by: 

Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to Rule XXVI, paragraph 11(b) of the Standing Rules 

of the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with paragraph 12 of Rule XXVI of the Standing 

Rules of the Senate, the committee notes that no changes to existing law are made by this bill. 

Æ 


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