ISLAMABAD As the American Assistance under the KLB Act has started pouring in, the Finance Ministry is now confident about the economy graduating from stabilisation to recovery stage. The Special Secretary Finance and official spokesman of the Ministry, Asif Bajwa while talking to TheNation said that funds under the KLB Act started arriving a couple months back. According to the spokesman, Benazir Income Support Programme, and Higher Education Commission were the first ones to get the American funding under this arrangement. In aggregate terms, Pakistan has, so far, received around $200 million under the KLB Act that envisages $1.5 billion annual financial assistance in exchange of assistance to the US in war on terror. Asked about the budgetary support from the US, he said, it would be part of the funds arriving under the already agreed upon procedure and timeline. The sectoral dialogue of the bilateral working group would not change timeline or procedure of the financial assistance, he added. Earlier, National Security Staff Senior Director for International Economics David Lipton led the US side in the sectoral dialogue with Pakistans economy team headed by Federal Minister for Finance, Dr Abdul Hafeez Sheikh that discussed the state of Pakistans economy and the future of the stabilisation programme. According to a joint statement issued after the talks, the discussions focused on how the two sides could best work together to stabilise Pakistans economy and create expanded employment opportunities. Dr Sheikh updated the US side on Pakistans 2010-11 budget and its ongoing economic reforms. The Minister also agreed to maintain the momentum of Pakistans stabilisation programme. Both sides also agreed on the importance of making sure that the US assistance supports mutually agreed priorities in the areas of energy security, food security, and human development. The two sides discussed options to reach sustainable fiscal deficit targets as well as means to increase Government revenues. The joint working group, according to the statement, took note of the need to bring structural changes to improve the performance of public sector enterprises, and reduce inefficient subsidies while effectively targeting governments resources to benefit Pakistans people in need.