Global Fund says 'not satisfied' with Pakistan’s use of grants, will increase monitoring

In this photograph taken on May 9, 2019, a Pakistani paramedic takes a blood sample from a girl for a HIV test at a state-run hospital in Rato Dero in the district of Larkana of Pakistan's southern Sindh province. (AFP/File)
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Updated 28 August 2020
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Global Fund says 'not satisfied' with Pakistan’s use of grants, will increase monitoring

  • The organization took the decision due to lack of financial transparency in the country, opposition politician says
  • Public health specialists suggest the government should strengthen auditing systems to ensure best utilization of donor funds

ISLAMABAD: The Global Fund, a Geneva-based international financing and partnership organization, has expressed dissatisfaction over the utilization of its grants in Pakistan to fight tuberculosis, AIDS and malaria and decided to invoke special measures to ensure “accountable use” of the funds. 

The organization mobilizes and invests more than $4 billion a year to support programs run by local experts in more than 100 countries including Pakistan.

It has disbursed over $600 million to Pakistan since 2002, and its next grant cycle will allocate nearly $300 million to fight the three diseases. 

The Fund has now invoked its Additional Safeguard Policy (ASP) for Pakistan with “immediate effect” after expressing discontent over the performance of Common Management Unit that helps utilize the funds.

“We are not satisfied with the role and performance of the Common Management Unit and do not see the strength of leadership necessary at this level to balance the centrifugal forces of devolution and to enable provinces to build stronger and more effective programs,” The Global Fund wrote to Prime Minister Imran Khan’s special adviser on health, Dr. Faisal Sultan, earlier this month. 

The Fund can invoke the ASP whenever “existing systems to ensure accountable use of Global Fund financing suggest that Global Fund monies could be placed in jeopardy without the use of additional measures.” 

The Fund said it had observed a worrying epidemiological trend over the past couple of years in Pakistan in its response to tuberculosis and HIV, where TB case notifications stagnate or even decrease and the HIV incidence largely remains unmitigated and on the rise. 

“We feel that notably our public sector principal recipients have not yet found an adequate way to transform domestic and external funding into a convincing approach to overcome those challenges,” the Global Fund said in the letter, a copy of which is available with Arab News. 

The Fund said that it would revoke the ASP after the fulfilment of eight conditions in Pakistan, including evidence that provincial programs were performing adequately and that programmatic and fiduciary risks were controlled. 

It added that it would review the status of these conditions annually. 

Dr. Malik Mohammad Safi, director-general health at the Ministry of National Health Services, declined to comment on the development, saying: “We are currently in the process of sending some projects to The Global Fund, so we aren’t in a position to comment on the letter.” 

Opposition parties and public health specialists have raised questions over the government’s capacity to manage these funds and grants. 

“The Global Fund has taken this decision due to fraud, corruption and non-transparency [in the utilization of funds] in Pakistan,” Marriyum Aurangzeb, a spokesperson for the opposition Pakistan Muslim League-Nawaz party, told Arab News. 

Dr. Khalid Mahmood, a public health specialist at the Rawalpindi Institute of Urology, urged the government to ensure transparency in the utilization of grants by ensuring internal and external audits of the funds. 

“Our public health departments are poor in record keeping like number of patients and utilization of funds, forcing donors like the Global Fund to question lack of transparency,” Mahmood told Arab News. 

He said that malaria and TB were deadly diseases and quite rampant in the country, especially in poor and rural areas, adding that massive awareness campaigns were required to bring them under control. 

“If, God forbid, we lose grants from The Global Fund, we won’t be in a position to fight the spread of these diseases within our limited resources,” he warned.


At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

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At UNSC, Pakistan warns competition for critical minerals could fuel global conflict

  • The demand for critical minerals has surged worldwide due to rapid expansion of electric vehicles, advanced electronics and clean energy technologies
  • Pakistan’s representative says all partnerships in critical minerals sector must be ‘cooperative and not exploitative’ and respect national ownership

ISLAMABAD: Ambassador Asim Iftikhar Ahmad, Pakistan’s permanent representative to the United Nations (UN), has warned that intensifying global competition over critical minerals could become a new driver of global conflict, urging stronger international cooperation and equitable access to resources vital for the world’s energy transition.

The warning comes as demand for critical minerals and rare earth elements surges worldwide due to the rapid expansion of electric vehicles, advanced electronics and clean energy technologies, with governments and companies increasingly competing to secure supply chains while raising concerns that this may lead to geopolitical rivalries in the coming years.

Speaking at a Security Council briefing on ‘Energy, Critical Minerals, and Security,’ Ahmad said experience showed that the risks of instability increased where mineral wealth intersected with weak governance, entrenched poverty and external interference.

“Access to affordable, reliable and sustainable energy is essential for development, stability and prosperity. The global transition toward renewable energy, electric mobility, battery storage and digital infrastructure has sharply increased the demand for critical minerals,” he said.

“This upsurge has generated new geopolitical and geo-economic pressures. If not managed responsibly, competition over natural resources can affect supply chains, aggravate tensions, undermine sovereignty and contribute to instability.”

In several conflict-affected settings, he noted, illicit extraction, trafficking networks and opaque financial flows have fueled armed conflict and violence, weakened state institutions and deprived populations of legitimate revenues.

“The scramble for natural resources and its linkage to conflict and instability is therefore not new,” Ahmad told UNSC members at the briefing. “Pakistan believes that natural resources must serve as instruments of economic development and shared prosperity, and not coercion or conflict.”

He urged the world to reaffirm the right of peoples to permanent sovereignty over their natural resources, saying all partnerships in the critical minerals sector must be cooperative and not exploitative, respect national ownership, ensure transparent contractual arrangements and align with host countries’ development strategies.

“In order to prevent the exploitation of mineral-producing countries and regions, particularly in fragile and conflict-affected settings, support their capacity-building for strengthening domestic regulatory institutions, combating illicit financial flows, ensuring environmental safeguards, and promoting equitable benefit-sharing with local communities,” he asked member states.

“Promote equitable participation in global value chains. Developing countries must be enabled to move beyond extraction toward processing, refining and downstream manufacturing. Technology transfer, skills development and responsible investment are essential to avoid perpetuating structural imbalances.”