**The government is facing criticism after a foreign office minister said UK counter-terrorism projects in Pakistan were being cut back.**Lady Kinnock said the weak pound meant the Foreign Office was having to deal with an estimated shortfall in budget this year of £110m.
Her comments came shortly after the PM called the Afghan-Pakistan border as the “number one security threat”.
The Lib Dems have demanded an urgent statement from Gordon Brown.
In December, he pledged an extra £50m to help Pakistan fight terrorism in the region, telling the country’s Prime Minister Yousuf Raza Gilani: “This is your fight but it is also Britain’s fight.”
‘Crucible of terrorism’
There is no suggestion that this money is at risk, although the Foreign Office said it could not go into detail at this stage about which programmes were facing cuts.
Lady Kinnock revealed at Lords question time that the Foreign Office was facing a budget shortfall across the board this year, which was due to get slightly worse in 2010/11.
“Cutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy”
William Hague, shadow foreign secretary
She told peers: "We have had staff redundancies in Argentina, Japan and across the United States.
“Programmes in Afghanistan in counter-narcotics have been cut, capacity building to prevent conflicts in Africa, counter-terrorism and radicalisation in Pakistan, the list goes on.”
Lord Wallace of Saltaire, for the Liberal Democrats, said he estimated that there had been a “20% cut” in the effective budget of the Foreign and Commonwealth Office since the Treasury removed the Overseas Price Mechanism in 2007.
That was a system whereby shortfalls that were the result of exchange rate changes were made up.
Lady Kinnock’s comments came in the House of Lords two hours after Gordon Brown outlined a range of new counter-terrorism measures to MPs in a Commons statement.
During that statement he said that the “crucible of terrorism” on the Afghan-Pakistan border remained the “number one security threat to the West”.
‘Top priority’
Shadow foreign secretary William Hague said the cuts were the “direct consequence of Labour’s decision to remove the FCO’s protection against exchange rate movements”.
He said: "Pakistan has been identified as one of the major sources of the terrorist threat to this country.
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"Cutting FCO expenditure on counter-terrorism programmes in Pakistan because of the movement of exchange rates is clearly not the way to run an effective foreign policy.
“It is time that the truth is known and the full extent of the damage done to British diplomacy overseas laid bare.”
The Foreign Office said it was constantly reviewing the precise allocation of its counter-terrorism spending.
A spokeswoman said its spending had increased year-on-year throughout the current comprehensive spending review period and was expected to increase again next year.
“Pakistan has remained our top priority for counter-terrorism and has rightly been the largest single recipient of our counter-terrorism support throughout this period,” she said.
“Looking more broadly than counter-terrorism, the UK is the second largest aid donor to Pakistan and we are increasing our aid for the period 2009-13 to £665m.”