Address at Pakistan Donor Conference

Check against delivery

1. Friends of Democratic Pakistan meeting
Let me express my appreciation to Japan for hosting this event and to the Government of Pakistan for inviting Norway to this ministerial meeting of Friends of Democratic Pakistan here in Tokyo. Norway welcomes this opportunity to flag its longstanding and continuing engagement and cooperation with Pakistan.

The challenges faced by Pakistan today are multifaceted and complex. They are due to conflicts, scarcity of natural resources, and underinvestment in human capital, compounded by the global economic recession.         

The Government of Pakistan is giving serious attention to addressing these challenges, seeking to steer the negative trends towards economic growth, progress and human development. Our friendly and honest advice in this regard is to take a hard look at the lessons learned over the past 60 years. Vested interests, unequal distribution of wealth and power, lack of land reforms, inadequate access to justice, and low investments in health and education have all contributed to the problems that the current Government of Pakistan now faces. Structural changes need to be made. They cannot be achieved overnight, but now is the time for the Government of Pakistan to stake out the direction.

Friends of Democratic Pakistan can be an active forum where the Government of Pakistan and international partners come together for the benefit of the country. Increased development assistance from the Friends of Democratic Pakistan will depend on efforts of all the involved stakeholders. More effective coordination between the development partners and the Government of Pakistan is required to increase accountability and effectiveness and to ensure that resources are used to achieve real results for the people of Pakistan. Norway strongly urges Pakistan and its friends to focus on strategic planning and priorities for promoting development and security in the country.
 
Friends of Democratic Pakistan can add value to existing structures and mechanisms based on international principles for donor coordination. Pakistan has signed the Paris Declaration on aid efficiency, and is a leading nation in UN reform.

Let me reiterate that reforms cannot be achieved by funding alone. Good policy decisions need to be made and implemented at all levels. Pakistan is at a crossroads. We welcome Pakistani commitment here that changes have to be made in order to secure tangible results in the short, medium and long term. We are fully aware that time is of the essence, and we cannot afford to fail.

Norway is fully committed to stand by Pakistan in its efforts to promote security, stability and economic growth. We very much welcome the emphasis on human development, good governance, institution building, strengthening civil society and access to justice – all key elements in our development cooperation.

Pakistan is an important partner in a regional context. Stability in Pakistan is important for development of the country, but also for regional stability and development.  Friends of Democratic Pakistan is an important forum for the international community and Pakistan to coordinate and align its strategies also for regional challenges.

2. Pakistan Donor Conference – Free discussion
In thanking you for these introductions, I would like to mention a couple of experiences that focus on quality of cooperation rather than quantity.

One of the significant risk factors in the IMF assessment is that private capital inflows might be lower than expected. Remittances are part of this. It is not in my place to forecast labour needs abroad, but clearly possible reduction in migrant labour may affect levels of remittance. Funding of schools and clinics has to some extent relied on remittances, but property seems to be the prime investment target.  The Norwegian government has recently launched a scheme where we work with the Pakistani diaspora (which is the biggest overseas community in Norway) to develop the right mechanisms for promoting remittances for social needs. Private funds for community projects in an ancestral village or elsewhere in Pakistan can now be doubled by Norwegian government funding while we also assist in facilitating local implementation of the project in order to maximise its impact. The first projects are now underway, and we will share experience as we gain it.

We also see institutional partnership as a crucial part of strategic cooperation, as this will enable Pakistan to draw on the comparative advantages of its friends. Pakistan and Norway has established a framework for institutional cooperation. The international recognition of Pakistan National Accreditation Council, is one of the products of this cooperation, contributing positively to Pakistani international market access. Norway would like to follow up and strengthen the very constructive experience, with a view to achieving the objective set out in the report from the Abu Dhabi meeting of enhancing “Pakistan’s inherent strength and capacity in overcoming challenges and building partnerships for peace and development.”

As we address needs for social development, let me take proud note of the Norwegian mobile company Telenor.  Not only are they currently the largest European single investor at USD 2 bn, they also chose successfully to tailor their product to include poorer rural segments of the population.

3. Pakistan Donor Conference – Pledging session
Norway is a firm believer and strongly committed to the efforts for stabilization, strengthening democratic processes and poverty reduction in Pakistan. There are strong ties between Pakistan and Norway as regard to political, economic and people to people cooperation.
 
Norway wants to continue its strategic bilateral development program with NOK 100 mill. in annual grants towards primary education, good governance and culture cooperation. An important part of the bilateral cooperation is institution building and management. We welcome a strengthened focus in this area towards environment and energy. It is important that success in institutional strengthening is based on strong ownership from the Pakistani side.
 
Norway has recently signed a Memorandum of Understanding with the Government of Pakistan and the United Nations on financing mother and new born child health with NOK 250 mill over 5 years.
 
The humanitarian situation in the border areas and in FATA is a growing concern. Norway has already contributed 25 mill NOK through the UN and ICRC for this humanitarian effort in Pakistan. Due to the urgent need for assistance to displaced people due to conflict, Norway announces an additional increase in its humanitarian contribution to Pakistan with 20 mill. NOK for 2009, bringing our humanitarian response to USD 7 mill..

Let me also mention that Norway provided grants of USD 80 mill. in humanitarian relief after the earth quake in 2005. An additional USD 20 mill. was provided in debt swaps where commercial debt to Norway is paid off through rehabilitation of schools. This program is still ongoing.

Norway is a significant contributor to the IMF, and recently approved funding for NOK 30 billion to IMF for its global efforts. We welcome the Pakistani decision to seek IMF assistance, and appreciate the IMF response.