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Rough, rough patch: Miffed US holds back ‘war on terror’ money
Pakistan’s tough stance on CIA operatives, reluctance to go after Haqqani network cited as possible reasons.
Pakistan’s tough stance on CIA operatives, reluctance to go after Haqqani network cited as possible reasons. DESIGN: ESSA MALIK
ISLAMABAD:
Three days before the current financial year ends, the US has delayed the release of funds meant to fight militancy amid reports that it has threatened to cut off Pakistan’s civil and military aid.
Pakistan was expecting $500 million (Rs43 billion) in the last tranche of the Coalition Support Fund (CSF), which was set up by the US Congress after the 9/11 attacks to reimburse allies for costs in supporting the US-led war on militancy. On April 25, Finance Minister Abdul Hafeez Shaikh had announced after a visit to the US that the Obama administration was “firmly committed” to releasing at least $500 to $600 million by June 30.
A finance ministry official said that the US Congress is yet to clear the transaction.
This is the second major setback to Pakistan’s besieged economic managers who seem to be struggling to keep the budget deficit below six per cent of total Gross Domestic Product (GDP). Earlier this week, government efforts to issue exchangeable bonds worth $500 million went in vain as international investors advised Islamabad to wait for a suitable time. Following these two events, budget deficit can now increase by 0.4% of GDP.
Release of CSF money has been marred by mistrust as US officials believe Pakistan overstates expenses it incurs. For the outgoing financial year, Islamabad had budgeted Rs133.5 billion ($1.4 trillion) but so far, it has only gotten Rs68 billion ($743 million). For the next fiscal year, the government expects to get Rs118 billion, of which Rs50 billion have been allocated to the armed forces in line with an understanding between the army and the finance ministry that 60% of CSF disbursements will go into civilian accounts and 40% to the army.
A finance ministry official said outstanding matured CSF claims stand at $1.8 billion (Rs155 billion). The Pentagon is also scrutinising another $1.7 billion, making total outstanding disbursements $3.5 billion.
The ministry’s official spokesperson Rana Assad Ameen believes the government will be able to restrict the deficit. He said the central bank will provide Rs185 billion and provinces will generate 110 to 115 billion rupees, which will be enough to restrict the yawning deficit.
Ameen said the Federal Board of Revenue is expected to surpass its revised revenue target of Rs1.5 trillion. Until June 25, the board had collected Rs1.47 trillion.
US threatens funds cut
Meanwhile, the US has threatened to cut off civil and military aid after Pakistan launched a crackdown against the “Central Investigation Agency (CIA) network” and appears reluctant to go after one of the deadliest Afghan insurgent groups in North Waziristan Agency.
Military and foreign office officials, all speaking on condition of anonymity, said the main reason behind the friction is Pakistan’s tough stance on the role of CIA operatives and its decision to reduce US footprint in the country as well as its refusal to launch a full-scale military offensive against the Haqqani network believed to be based in North Waziristan.
“The Americans are sending out all kinds of threats in recent days … they have even threatened to stop financial assistance,” a military official said.
He said the US is clearly upset over the recent crackdown launched against the CIA network in the country, following the Abbottabad raid that killed al Qaeda kingpin Osama bin Laden.
Pakistan’s military has confirmed the arrest of several people who are believed to be working for the CIA in a nationwide crackdown. However, at the same time, Pakistan reportedly has issued visas to over 60 CIA officials as part of the new arrangement between the two countries to conduct joint operations against ‘high value targets.’ Sources say visas were issued after US threatened to cut off military aid.
As part of ‘pressure tactics’, the Obama administration is also trying to ‘sideline’ Pakistan on the Afghan endgame and its recent peace overtures with the Afghan Taliban, said another official. “These are all pressure tactics. They (US) want us to accept things which we believe are not in our national interest,” he said.
He said Pakistan was preparing a ‘comprehensive response’ to US President Barack Obama’s announcement for the withdrawal of 33,000 US troops from Afghanistan by September 2012.
Published in The Express Tribune, June 28th, 2011.
Reader Comments (62)
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You won’t combat the militants yourself – and do your best to interfere with the USA combating the militants – and lets not forget you were caught hiding OBL —— so why should the USA give you any financial support? The reality is that the USA has finally come to the conclusion that they cannot trust Pakistan and the days of “business as usual” are gone forever.Recommend
ISPR is doing a great job in exposing the lies of Karzai, and other foreign powers. They promptly and clearly refute the false allegations aimed to damage the stellar reputation of the Pak Army. By doing this Pakistani army is defending the ideological boundaries of the country against the evil foreign powers.
Now that the US has been dragging its feet and holding our $500 millions, why would the army not expose all the lies that US has spread about OBL living for five years in Abbottabad sanctuary? By doing so Pakistan army would not need to artificially clean its image, but also the countrymen would know the truth right from the horse’s mouth and not from the other end. It is almost 2 months and the enemies of Pakistan need to be exposed and humiliated by the truth. By not doing this the army is simply taking the blame for the wrongdoings of the enemy. Let us prove to the world that telling the truth can happen in the Islamic Republic of Pakistan! Recommend
Pressure tactics, funny. Congress cutting for US military escapades all over the world. Packaging it as arm twisting is funny cos supply line goes through Pakistan. How about Pakistan tax your supply line.Recommend
Time to tow to the line and take out our strategic terrorists, or else the future looks bleak, no aid, no food, no weapons, Damn!
Dr. Mohammad Azmi
Nuremberg, GermanyRecommend
Cut off all NATO supplies from Karachi in response. They can ask their new Indian friends if they can use Bombay instead. And they can try to use India’s land route to Afghanistan. Recommend
The sooner the country becomes financially independent the better. Life is a joy when you are able to pay your own bills. A self sufficient country can prioritize its expenses with greater efficiency. Recommend
@Frank
“Cut off all NATO supplies from Karachi in response. They can ask their new Indian friends if they can use Bombay instead. And they can try to use India’s land route to Afghanistan.”
Baggars way of threatening !! :) Your reaction proves why pakistan wanted to keep alive this war against terror for ever.Recommend
This is great news!! Hope America really cuts off all aid to the great country of Pakistan which should have no problems managing its own finances.Recommend
No surprises, US did it after the Soviet defeat in Afghanistan, and being defeated themselves, they have a valid aurgument ” Pakistan failed us and thats why we are moving out defeated and that too at the hands of Talibans” Recommend
satyram
Wrong.Totally and utterly wrong. We want this war to end and we want America out of our part of Central and South Asia for good. This is our number one priority right now. You should have noticed that we are trying to build alliances with Iran, Russia and China to this end, and we are getting favourable responses.Recommend
It’s a very positive news… let them cut off the all aid so we can learn to live within our means and raise money by taxing the non-tax paying rich and the nato containers passing the country… it’s time to roll back relationship with the US…Recommend
Pakistan needs to be run like a country and not like a shop.
The government needs to seriously work out long term strategy and an effective dialouge with other governments.
I have absolutely no doubts that the current set up is causing grave damage to the long term relations with a number of countries.
Yes; USA government is doing what they consider in their best interest. why did GOP spend money if it was not paid in advance.
In four odd years, Government of Pakistan has not been able to get $ 500 Million plus from ETISALAT for PTCL shares it sold. Atleast start from here and claim damages from EtisalatRecommend
I can not understand that Americans always “threaten to” cut off aid, why don’t they just cut it off?Recommend
@Frank: ” And they can try to use India’s land route to Afghanistan. ”
Yes, we are working with the Americans on that. India’s land route will be via Gilgit Baltistan, which will be re-incorporated into India. You will get to keep the sliver of land called “Azad Kashmir”Recommend
Uncle Sam please don’t stop military aid otherwise their nukes will be lined up for sale !!!Recommend
Your orientation seems to be very poor dear @satyram:
Bombay or any else part of India does not have a direct land, air or sea direct link with Afghanistan. Afghanistan is a land locked country and is largely dependent upon Pakistan for its trade route nevertheless; aside Iran.
We need not to fear India factor, yet the important concern is the UN Security Council resolution that has authorized NATO & US forces to operate under the umbrella of ISAF (International Security Assistance Force) to fight terrorism.
If we block NATO supply, we go against the International community- that Pakistan can seldom afford at present.
Nothing to be emotional – yet Pakistan cannot afford to be isolated in the world, especially for those Mullahs / JIHADIES who have wrought havoc to the country in the past many years by launching innocent civilians.
Our security establishment needs to mend its ways they still look for a strategic depth in Afghanistan. Taliban are no one’s friend, they could brutally kill Colonel Imam under their captivity, and they cannot be trusted.
We need to understand the nature of conflict and international sensitivities associated to mthis issue. Let us say no to terrorism and join hands with international community to fight them out of our land – rather than going against the tide. Recommend
Vienna,28-06-2011
Keep debating & see what you get finally. I am amused by the comments
Orwellian.It is a long haul.Pakistan has put the neck inside the noose. But
not yet kicked off the stool.
-Kulamarva Balakrishna Recommend
@Frank:
If Pakistan cuts of the supply line US will take the longer route through Russia. Atbest the US will lose a war it was already losing.
If US takes action, Pakistani economy is going to fail. Recommend
@Aftab:
Because the money isn’t entitled for idle action. They say if the idle action doesn’t change they’ll just stop giving it. Then Pakistan says they will cooperate in the ways they said they would in response to it and they get another chance. This is repeated a ridiculous number of times. The number of claims about stopping aid is more or less the score for how many times Pakistan has been caught lying and/or has been found to be incompetent only to start sucking up after the fact. What that means is, most of the things they do that inspire the US to cease aid are things they were doing with the hope of not getting caught.
It’s only fair to mention it and give them a chance to fix the problem rather than just giving the cold shoulder with no explanation.Recommend
@BruteForce:
How can economy fail when we grow our own food and make our own products.Recommend
@BruteForce:
Why Russia? As a ‘major stakeholder’ in Afghanistan I’m sure India can allow the Americans to use their own land route to Afghanistan. You do have one, don’t you? I mean, as a major stakeholder and all that?Recommend
Dear Express Tribune, the vast majority of Pakistanis want America out of the region. This is an indisputable fact. Many people are pushing for an alliance of the major powers in the region to keep America out. This too is an indisputable fact.
If we are not allowed to state these facts on your message boards then there is a big question mark on your credibility as a Pakistani newspaper.Recommend
that’s GREAT news…
…said another official. “These are all pressure tactics. They (US) want us to accept things which we believe are not in our national interest,”….
I’d like to ask the official “what are ‘our national interests’ ?”.
I believe its great news that US is holding the money….as this parasitic relationship needs to be substituted with a symbiotic one. Pakistan has worsened with US aid. Pakistan would not die of hunger if this or similar tranches are not given out. its only a few at the top who can’t imagine the sight of electricity failures or interrruptions in golf-schedules or late night parties.majjority of the country is already suffering aid or no aid. at least some next govt would have more levy to form a national policy and bouncing back is in the fibre of the pakistani people.
So please leave us to ourselves…and hafeez sheikh should stop adverisizing our misery and should give the begging bowl that he’s carrying around his neck a rest….for good.Recommend
You trusted USA in 1971 and you know the result. What sort of a financial manager gets bitten twice by the same snakeRecommend
please just cut off aid, sooner this happens is better for us in longer run.Recommend
by the way our economy not going to fail with aid being stopped as aid doesnt run our economy but military hardware and rulers pockets.
it would help us become self sufficient in longer run.Recommend
ET, Rs133.5 billion is not equal to $1.4 TRILLION!Recommend
@Frank:
Is this the best solution that you can find for all the BS that you guys have been telling the world, about being victims of terror and your fight against the terror!!!!!
Well just remember that even this route used by NATO & US for Supplies is not free!!! The Taxpayers of these countries are rewarding Pakistan with handsome fees, even though there is a huge problem with theft & pilferage along the route!!!!!
Understand one thing very clearly that Pakistan has not done anything for free, so far in this war on terror!!!
In fact they have over inflated their bills to US, which basically in commercial world would be classed as FRAUD!!!!! Its called Obtaining Money & Property through Deception!!!!!!
So much for your national honour & reputation, in the world !!!!!!!! Recommend
The relations between US and Pakistan is at the lowest ebb. US has run out its patience with Pakistan, making it very clear that there are no more free lunches and its time to deliver or face financial crunch. Also the time for dual-games atleast with US in which Pakistan has the dubious distinction of being the master is also over. Honesty is the best policy and it pays its dividends in the long run but will Pakistan leave her old habits is still a million dollars question. Recommend
… They have found more than their match in Afghanistan / South Central Asia … after all! In the end Will Remain; the Afghan and the Mountain!
Don’t worry, these guys will cough up this amount … and much more …. in time, in good time … Recommend
@Moise:
Same way, how about US charging Pakistan for its ‘drone services’ ?Recommend
@Frank:
We are just going to send Core of Engineers and cut road right through the center of Pak. The problem with you guys always is this false I am indispensable belief you all carry around.
Weren’t people arguing the high cost Pakisan is paying for the war? Like I said before, you are being paid to do a job and you are slacking off for the past 10 years. Now, we are saying, we will pay when you do the job you are paid to do.
Tell your mercenary army that, they have got to do, what they are paid to do.Recommend
@Shamsi Ajanee:
Only problem is, the Government of Pakistan has no credibility with anyone including, Pakistan’s best friend China. May be China will give you $500 million to fill the gap. Go ask!Recommend
1989 againRecommend
@Frank:
“@BruteForce:
Why Russia? As a ‘major stakeholder’ in Afghanistan I’m sure India can allow the Americans to use their own land route to Afghanistan. You do have one, don’t you? I mean, as a major stakeholder and all that?”
My friend; I think you are not aware that our land route to afganistan was highjacked by pakistan in 1948. OR , if you are talking in sarcastic tone, then I’m sorry, i could not understand your comment properly.Recommend
@Cautious:
That’s an interesting take. Keep in mind however that the US’ military efforts in afghanistan are almost solely dependent on Pakistani territory and airspace for transit. Without Pakistan’s nod, it would have been intersting to see how the US would have even set foot in Afghanistan?
If Pakistan is able to support a war (and of course the country sposoring it) despite it having an approval rating slightly more than 10% (Gallup poll 2011); and lsuffering osses many times that of the US with a pinch of salt, expecting the same from our ‘partners’ doesn’t seem all that far-fetched!Recommend
i hope this turns out to be a blessing in disguise.Recommend
@Moise:
So did you really think that past 10 years , pakistan has been allowing these supply lines for Nato & US troops in Afghanistan for free?????
I suggest you do some homework and understand that nothing Pakistan has ever done without Financial Incentives!!!!!!
It involves loads of money!!!
Shame that the Elite and the Army are not willing to share it with common people!!!!!Recommend
@ali:
I agree and I also clarified this fact to Frank.Recommend
Who cares about self serving aid. The Indians and their lackeys in Afghanistan are sending cirminals to Pakistan and destablizing our nation. If the US doesn’t see this, so be it. Let us say good bye to aid. In the long run Pakistan will be better off since the aid isn’t worth one Pakistani life being lost to foreign supported criminals. Let us not forget the West made these criminals iniltially to fight the Soviets and left us holding the bag. Now the Indians and their lackeys are trying to put the blame all on us. No way. No to aid. Yes to Pakistan and self reliance.Recommend
@Frank:
That is precisely what the US wants. US would like Pakistan to turn openly hostile so that it can shift the focus from Afghanistan to Pakistan. That is what Obama means when he says that Pakistan has to make a choice. The choice is the same which Collin Powell gave to Musharraf more than a decade ago-Are you with us or against us?Recommend
@Frank:
India will not do that. America is interested to kill those Taliban/ Jihadists who kill NATO and American forces not those that create terrorism in India. US will use the Russian route for Afghanistan. Karachi will be directly used for Pakistan. US has to do it for it’s own security. India will not be involved in fighting an American war. Let them fight it on their own.Recommend
What does this favourable response means? more new doners to begin more terror training camps?@Frank: Recommend
Sir, “By doing this Pakistani army is defending the ideological boundaries of the country against the evil foreign powers.” Why do you think that the job of army is to protect the ideological boundries of the country? The world thinks that this is the job of CIVILIANS in the GOVT. The job of Army is to protect the geographical boundries and obey the Democratic Govts.
ir “@Mirza: Recommend
@CitizenoftheWorld:
In your dreams !!!! Not if the taxpayers have any say, don’t act so naive!!!! The Lawmakers in Washington are well aware of this now, hence No Payments!!!!
Let’s see as to how you survive without Uncle Sam !!!!!Recommend
@Menon:
LOL!!! Do you really for a moment think that the Chinese will trust Pakistan with Money????
The Pakistanis have something to learn about this all weather friend!!!!Recommend
Dear Ali very nice and realistic analysis. I agree.@ali: Recommend
@Frank “Many people are pushing for an alliance of the major powers in the region to keep America out”.
What major powers are those? Who’s “pushing” as Pakistan is viewed as the NEXUS OF TERRORISM and has zero political clout and Iran is viewed as an international pariah. Both China and Russia have their own problem with Muslim terrorist – and like most Muslim terrorist they tend to have roots that extend back to Pakistan and Afghanistan. Russia doesn’t like you – and China uses you as a foil against India. Both Russia and China are dependent on the USA and if truth were told are probably closer allied with the USA on most World issues than Pakistan. Both countries would support NATO supplies being delivered through territory that they control.Recommend
Pakistani finance managers are relying on CSF to fill the budget, what a joke.Recommend
Patriot Missiles
Stinger Missiles
Bunker Busters Work
MOAB
pakistan knows only this
it not knows enterinment,film,music,cricket,volleyball,footballRecommend
@ Frank – you continue to post delusional comments on ET. China, Iran, and Russia are in no way going to step in to fill in the void the US will leave.
Your comments are indicative of the Pakistani military mindset “Dekha do humko” (“Just try and show us”). Keep pushing the US and they will give up on Pakistan. Pakistan is on the brink of massive civil strife. Imagine if the US pulls out, then who will be the common enemy (always fake since Pakistanis have to blame someone ELSE for their problems and refuse to look at their own corrupt leadership and pathetic, cowardly military). What will unite Pakistan then? The US will not be blackmailed any longer.
Pakistan has long played the role of the uneducated feudal gunda who just bullies people for money. That was okay when we were all little kids and Pakistan could get away with it. The world has grown up now and realizes that Pakistan can either grow up or shut up. Recommend
…… The outstanding CSF is Pakistani money spent on support provided to NATO / Coalition… it will get it in the end … don’t worry … it will come …
… Recommend
@Frank:
Its time the pakiss cleaned up their closets of terrorists & came clean on their alibi else they can go with their begging bowls to china…Recommend
To my Indian abd Pakistani brothers, after reading this blogg, I have come to the conclusion that all the above bloggers shuold stop blogging and become members of parliament of their respective countries. Recommend
Attention-Salman Bashir: Please be advised that you need to have the ISI remove the Haqqini terror network squads that have been placed,financed & armed by your intelligence community to stall US-AFGHAN-Taliban talks. The 470 rockets fired at or over the Afghan boarder from Pakistan is a ploy to disrupt talks that will assist NATO-US withdrawals & AF-Pak peace agreement. I give your intelligence agencies 24hrs to remove the millitant groups Haqqini squads from the areas in Pakistan that boarder into Afghanastan & refrain from firing anymore rockets in the Nato occupied country of Afghanastan. If for any reason Islamabad continues to condone the ISI,s campagn using the Haqqini terror network to fire rockets across the boarder or continue to ignore diplomatic requests to stop, I will put my TEAMS on DRF3 on the ground and in the air including Hell Fire to desimate the rocket launching pads used by the ISI,s Haqqini Terror Networks on the boarders in Pakistan. My last message to Amb Haqqani was ignored and 22 milltants where taken out the folowing day!! please dont test me..If you want U.S money YOU better Jump when we have a request!!Recommend
@uH: to Cautious
“Without Pakistan’s nod, it would have been intersting to see how the US would have even set foot in Afghanistan?”
And, you say this when the drones are drumming an entirely different story into people such as yourself day in and day out. The problem with Muslims generally is that they truly believe that whatever limitation (of all senses- sight, hearing, smell, intelligence etc.) they suffer from is the limitation everyone suffers from, too. So, ipso facto, no one is smarter than him. In other words, because he has been told that he is ashraf-ul-makhlooqat (pinnacle of creation) that no one can surpass him in his capabilities. And this, after everything he attempts results in abysmal failure. You don’t need the human foot imprint in a country these days to completely wipe it out, my friend. When will you realize it and find your proper place in the scheme of things? You have not exactly dazzled the world so far in any field other than barbarism and terrorism!Recommend
@Moise:
That exactly what N. Korea is trying to do. Good model, one more flood and another natural calamity, what would you do?Recommend
@uH:
It would be more interesting to see what US would have done, want to take a guess? What would Pakistan do if US violated Pak airspace? Shoot down US aircraft? That would be fool hardy, Pakistan would ceased to exist.
Remember the these words from General Colin Powell to Gneral Musharaff; “you are with us or against us”, what does that meant to you. Does it sound like an option to you?Recommend
@VINOD: You mis-understood my post. I thought I was being sarcastic! I am trying various ways and means to get the army to tell the truth. Sorry that I have failed.
Recommend
@VINOD: You mis-understood my post. I thought I was being sarcastic! I am trying various ways and means to get the army to tell the truth. Sorry that I have failed.
Dear Mr Mirza, Thanks for your comments. I am touched. God blessRecommend
None of you are in any position to accurately judge the positive or negative implications concerning the aid. Your government leaves you uninformed on everything. Partly because of corruption but probably more because the immaturity of the citizens and their reactions. (which usually involves people getting killed over the most trivial of things from lack of understanding or unchecked denial)
You just don’t know. Claiming anything else makes you a supporter of wishful thinking. No more than that.
Given, I don’t know either. But, I’m also not acting like I do.Recommend
There is no such thing as US aid, it is a bribe given mostly to Generals and some to the politicians. Recommend