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PAKISTAN 
SEC. 689. (a) Of the funds appropriated by this Act 
under the heading ‘‘Foreign Military Financing Program’’, 
$300,000,000 may be made available for assistance for 
Pakistan, unless the Secretary of State reports to the Com-
mittees on Appropriations that the Government of Pakistan 
is not— 
(1) making effective and consistent efforts to pre-
vent Al Qaeda and associated terrorist groups from 
operating in the territory of Pakistan, including by 
eliminating terrorist training camps or facilities, ar-
resting members of Al Qaeda and associated terrorist 
groups, and countering recruitment efforts; 
(2) making effective and consistent efforts to pre-
vent the Taliban from using the territory of Pakistan 
as a sanctuary from which to launch attacks within 
Afghanistan, including by arresting Taliban leaders, 
stopping cross-border incursions, and countering re-
cruitment efforts; and 
(3) implementing democratic reforms, including 
by— 
(A) allowing free, fair and inclusive elec-
tions in accordance with internationally recog-
nized democratic norms; 
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(B) ensuring freedom of expression and end-
ing harassment of journalists and government 
critics by security and intelligence forces; and 
(C) respecting the independence of the judi-
ciary and implementing judicial decisions. 
(b) If the Secretary reports pursuant to subsection (a), 
funds that are available for assistance for Pakistan pursu-
ant to this section which have not been made available may 
be transferred to and merged with funds appropriated by 
this Act under the heading ‘‘Economic Support Fund’’ and 
used for basic education, health, micro-enterprise develop-
ment, and democracy programs in Pakistan. 
SRI LANKA 
SEC. 690. None of the funds appropriated by this Act 
under the heading ‘‘Foreign Military Financing Program’’ 
may be made available for assistance for Sri Lanka, no 
defense export license may be issued, and no military equip-
ment or technology shall be sold or transferred to Sri Lanka 
pursuant to the authorities contained in this Act or any 
other Act, unless the Secretary of State certifies and reports 
to the Committees on Appropriations that— 
(1) the Sri Lankan military is suspending and 
the Sri Lankan Government is bringing to justice 
members of the military who have been credibly al-
leged to have committed gross violations of human 
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rights, including extrajudicial executions and the re-
cruitment of child soldiers; 
(2) the Sri Lankan Government has provided 
unimpeded access to humanitarian organizations and 
journalists to Tamil areas of the country; and 
(3) the Sri Lankan Government has agreed to 
the establishment of a field presence of the Office of 
the United Nations High Commissioner for Human 
Rights in Sri Lanka. 
PEACE CORPS SEPARATION PAY 
SEC. 691. (a) ESTABLISHMENT OF FUND.—There is es-
tablished in the Treasury of the United States a fund for 
the Peace Corps to provide separation pay for host country 
resident personal services contractors of the Peace Corps. 
(b) FUNDING.—The Director of the Peace Corps may 
deposit in such fund— 
(1) amounts previously obligated and not can-
celed for separation pay of host country resident per-
sonal services contractors of the Peace Corps; and 
(2) amounts obligated for fiscal years after 2006 
for the current and future costs of separation pay for 
host country resident personal services contractors of 
the Peace Corps. 
(c) AVAILABILITY.—Beginning in fiscal year 2007 and 
thereafter, amounts in the fund are available without fiscal 
year limitation for severance, retirement, or other separa-
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tion payments to host country resident personal services 
contractors of the Peace Corps in countries where such pay 
is legally authorized. 
MULTILATERAL DEVELOPMENT BANKS 
SEC. 692. (a) INDEPENDENT AUDITING AND INSPEC-
TOR GENERAL.—The Secretary of the Treasury shall in-
struct the United States Executive Director to each multi-
lateral development bank to inform the bank of, and use 
the voice and vote of the United States to achieve at the 
bank, the following United States policy goals: 
(1) 
Each 
multilateral 
development 
bank 
should— 
(A) establish an independent Office of In-
spector General, establish or strengthen an inde-
pendent auditing function at the bank, and re-
quire that the Inspector General and the audit-
ing function report directly to the board of direc-
tors of the bank; and 
(B) adopt and implement an internation-
ally recognized internal controls framework, allo-
cate adequate staffing to auditing and super-
vision, require external audits of internal con-
trols, and external audits of loans where fraud is 
suspected. 
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(2) Each multilateral development bank should 
establish effective procedures for the receipt, retention, 
and treatment of— 
(A) complaints received by the bank regard-
ing fraud, accounting, mismanagement, internal 
accounting controls, or auditing matters; and 
(B) the confidential, anonymous submis-
sion, particularly by employees of the bank, of 
concerns regarding fraud, accounting, mis-
management, internal accounting controls, or 
auditing matters. 
(b) WORLD BANK INSPECTION PANEL.—The Secretary 
of the Treasury shall instruct the United States Executive 
Director to the World Bank to inform the Bank of, and use 
the voice and vote of the United States to achieve trans-
parency reforms of the selection process for members of the 
World Bank Inspection Panel, including— 
(1) Widely circulating Inspection Panel position 
vacancy announcements on the Inspection Panel’s 
website and in appropriate publications; 
(2) Notifying civil society organizations on the 
Inspection Panel’s website and on other appropriate 
World Bank websites and inviting nominations from 
such groups; 
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