The Obama administration's efforts to help raise $4 billion to $5 billion at an international conference in Tokyo on Friday to help Pakistan are being hampered by Saudi Arabia, according to the Wall Street Journal.
The paper claimed on Tuesday that the Saudis had expressed only "muted interest" in supporting Pakistani.
The paper pointed out that Riyadh has close ties with Nawaz Sharif, who has emerged as a serious challenger to President Asif Ali Zardari.
Obligations: If Saudi Arabia does not contribute, it could undermine Islamabad's efforts to meet its obligations. Last November, Pakistan was forced to turn to the International Monetary Fund for $7.6 billion in loans to avert a balance-of-payments crisis.
Signal: A pass by Saudi Arabia would also send a signal that it does not support the Zardari government.
Riyadh took part in a meeting last week in Dubai to address Pakistan's finances but declined to make a formal pledge. An official at the Saudi Arabia embassy in Washington declined comment. Saudi Arabia has traditionally been among Pakistan's largest donors and strategic allies. During the 1980s, Saudi Arabia cooperated closely with Washington and Islamabad to expel Russian troops from Afghanistan.
More recently, however, the US and Saudi Arabia have taken differing positions on Pakistan's leadership. In late 2007, Riyadh negotiated a deal with President Pervez Musharraf, without seeking American consent. This allowed Sharif to return home although US has long voiced scepticism about his ties to religious parties. Zardari who leads the ruling Pakistan People's Party is largely viewed as pro-West. Saudi Arabia is currently giving Pakistan 80,000 to 100,000 barrels of oil a day - roughly $5 million in aid.
Saudi Arabia is also sending a delegation to the Tokyo conference, and an Arab diplomat said he would be "surprised" if Riyadh did not pledge more money. The US and Japan are each expected to pledge $1 billion according to the officials involved in the negotiations. The European Union, the UK and the United Arab Emirates are each expected to pledge as much as $500 million. The Commercial Section of Pakistan Embassy Argentina is holding Pakistan Trade.