Happy with taxing rich – US will do more for Pakistan, says Holbrooke

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ISLAMABAD: Encouraged by the government’s decision to tax the rich through legislation, the US has indicated that it is now ready to do more and help the cash-strapped ally meet its domestic financial needs.
“No more words, we want action on table,” US Special Representative for Pakistan and Afghanistan Richard Holbrooke said on Sunday at a Round-table discussion arranged by the Radio Pakistan.”I will make an important announcement on Monday (at the Pakistan Development Forum today),” Holbrooke said, adding that Washington appreciated Islamabad’s legislative move to increase its revenues through taxes.
“It’s a good signal to the international community … the wealthy people must pay tax … they have an obligation to do something for the poor,” he added. He observed that Pakistan was one of the most under-taxed countries and it had become difficult for its foreign friends to justify giving their tax-payers money to the non-tax payers.
When asked about the resistance put up by opposition parties as well as the government’s allies, he refrained from commenting, saying it was part of the democratic process and the country’s internal matter. But he clearly suggested that if Pakistan did not tax the rich, it would be difficult for the US and others to give billions (of dollars) to it.
Commenting on the war on terror and the anticipated operation in North Waziristan, the US representative admitted that “Pakistan did not have the resources to launch an operation in North Waziristan”. “It is a tactical decision to be made by the Pakistan Army, but the operation will take place … we cannot dictate … the Pakistan Army will decide when to move,” he said, adding that there was no trust deficit between his country and the Pakistan Army on this issue.
On Afghanistan, he said his country would not repeat the mistake it committed in 1989 by walking away and turning its back on the war-ravaged country after the Soviet withdrawal. “We will not leave and abandon Afghanistan … it’s a transit not an exit strategy,” he said.
But at the same time he also made it clear that if Pakistan and Afghanistan did not work together, there was no possibility that this war would end. Though he denied that a dialogue was taking place with the Taliban, he admitted that some contacts had been made.
“If Pakistan wants to play any role (in peace), that will be welcomed,” he added. However, he ruled out the possibility of accepting any pre-conditions for talks and said the demand of Taliban to remove Afghan President Hamid Karzai as a pre-condition was unacceptable.
The US special envoy said sources of funding for terrorists and militants came from outside Pakistan and through extortion of NATO supply convoys.
Holbrooke said his country always supported dialogue for peace between Pakistan and India. “We will support reduction in tension between them through the process of dialogue but can’t play a role of mediator,” the US representative said. He said the US, Pakistan, Afghanistan and India faced a common enemy, tacitly suggesting that India too had a role to play against war on terror.