Director of Central Intelligence
FOR RHUS! OAIE Wl!UOI
Could Inflame Anti-Amrrfcanhnil
; on Pakistan will feed anti-US seniimen: becauseview them as iiiscrimin.!tor>'anti-US
demons*rations already arc
Editorials in major Pakistani newspapers arc repealing the common rcfiain that the sanctions wduW unfairly punish Pakistan while Moderating the real offender. India.
Many Pakistanis claim Washington wants to keep Pakistan poor and dependent |
In response lo sanctions. Islamabad may havedopt policies over the next year mat farther erode the limited buying power of the average Pakistani and fuel additional resentment toward the (IS Additional cuts inreduced to essential goods such us food. fuel, and industrial inputsepreciating rupee will increase the costs of basic goods.
Failure to cut spending will force Islamabad to finance lis deficit locally, which will crowd out domestic capita/ building.
lower Investment will Increase unemployment in urban areas, where at least one-third of the population lives on less than one dollar a
Prime Ministerolitical opponents, such as former Prime Minister Benazir Bhutto andslarni (SI) chief Qazi Hussein Ahmed, will use the lanccions issue to their political advantage. Ahmed, whose followers command significant "streetistory of whipping up anti-US senumraL
Inroup of JI members pehed the US Consulate in Lahore with bricks, and last August the J] burned Ihc American flag and torched effigies of President Clinton in Karachi I-
Ten Secret laeafkMOriginal document.
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