| OCR Text |
Show 72 during the respective time periods and overall. One point worthy of special note is the growing proportion of loan in the total expenditure picture, Figure 3.1 shows this trend shows the decline in the grants Pakistan is faced with a on an annual basis and also category, rapidly growing debt (which is discussed in Chapter VI). service problem Congress has, through the The years, made the terms of U,S, aid harder and harder, see from -table 3.1 that in the early yea.rs of U. S, aid to Pakistan grants were significant •. It is also significant that the Mutual We can Security Program (MSP) loans and the Development Loan Fund (DLF) loans can be repaid in local currency and thus from a debt service not are standpoint. a real burden to Pakistan's economy loans, the Export Import Bank The AID payment of bo+h principal loans and the Hheat Loan all require dollar and interest, ties were The bulk of the PL 480 Title I under the sales for local currency agricultural corunodiprovision. In FY the U,S, hardened the terms for PL·480 Title I commodities to Pakistan (and India) II They were shifted by 20 per cent annual incre ments from sales for local currency with dollar Table an aid 1968 to loans on "AID Loan" principal and interest payment required. terms45 46 3.2 and table 3,3 show Pakistan's relative importance as Overall it ranks fourth in cumrLatd ve aid to recipient. "t underdeveloped countries47 though it has fared relatively better in more recent years. 48 It is rather a surprise, when we move from table 3.2 to table 3.3 to find that battle-weary Vietnam is the aid recipients that is also one only one of the top five of the top five per capita aid |
