A key US lawmaker on Wednesday urged a halt to an aid program for flood victims in Pakistan in the wake of revelations that slain Al-Qaeda chief Osama bin laden lived there unperturbed for years.

Republican Representative Kay Granger, who chairs a key committee with oversight over foreign assistance, pressed Secretary of State Hillary Clinton to shelve nearly $200 million in "cash payments" to Pakistan agencies.

"My opposition to the program has only been heightened by the discovery of the most notorious terrorist in the world living hundreds of yards from a Pakistani military installation for more than five years," said Granger.

"This reinforces my greater concern that the government may be incapable of distributing US funds in a transparent manner that allows proper oversight of taxpayer dollars," the lawmaker said in a letter to Clinton.

Granger said the weekend raid that saw bin Laden die at the hands of US special forces and revealed he lived in a fortified compound not far from Pakistan's capital had left "immense uncertainty" about bilateral ties.

At issue was a plan to provide $190 million of US assistance for victims of devastating floods in Pakistan through a special compensation fund that would give them debit cards to rebuild their homes.

Granger said US taxpayers "would be appalled" to hear of the program and warned she would "not be able to defend this program" to her Texas constituents, charging the administration had denied federal disaster relief for her home state in the wake of wildfires that torched some 400 homes.

Her comments came as a chorus of US lawmakers called for reevaluating US-Pakistan ties — and notably aid from cash-strapped Washington — in the wake of the bin Laden revelations.

earlier related report

NATO urges Pakistan progress in anti-terror fight
Brussels (AFP) May 4, 2011 –

NATO's chief urged Pakistan on Wednesday to make progress in the battle against terrorism and said the US commando operation that killed Osama bin Laden near Islamabad was justified.

"We have encouraged the Pakistani authorities to reinforce the fight against terrorists and extremists, in particular in the Pakistan-Afghanistan border region," Secretary General Anders Fogh Rasmussen told a news conference.

"We have seen progress, I think there is potential for more progress," he said.

"We must actively cooperate with the Pakistani government and military in order to strengthen efforts against terrorists in the border region," Rasmussen added.

Pakistan has been forced on the defensive over how the slain Al-Qaeda leader managed to live undisturbed in a sprawling villa near the Pakistani capital until US commandos killed him early Monday.

Rasmussen said it was important to continuously engage Pakistan in order to strengthen its partnership with NATO.

"It takes a positive engagement of Pakistan to ensure a long-term solution to the conflict in Afghanistan," Rasmussen said.

"This is also the reason why we have invested some efforts in developing a partnership with Pakistan and recent events do not change our strategy in that respect.

"On the contrary I think it just underlines how important it is to continuously engage Pakistan positively," he said.

Rasmussen backed the daring US Navy Seals mission inside Pakistani territory.

"The bottom line here is that the founder of Al-Qaeda has been responsible for the deaths of thousands of innocent people, and I think it has been justified to carry out this operation against him," the NATO chief said.

"And I do hope that this very successful operation will lead to undermining one of the world's most dangerous terrorist networks."

Rasmussen stressed that bin Laden's death did not mean the end of the war in Afghanistan, where 140,000 NATO-led foreign troops are fighting a resilient Taliban insurgency nearly a decade after the 9/11 attacks on the United States.

"My message is clear. We will stay the course," he said. "International terrorism continues to pose a direct threat to the security of our nations and to stability across the world.

"Our reason for being in Afghanistan is clear and our strategy will not change. NATO allies and partners will continue the mission to ensure that Afghanistan never again becomes a safe haven for extremism."

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