KARACHI: Pakistan said Thursday it had received $1.1 billion dollars from the United States in Coalition Support Funds for its fight against militants, the first installment of its kind since December 2010.
Washington released the funds after Pakistan and the United States on Tuesday signed an agreement governing Nato convoys travelling through Pakistan into Afghanistan until the end of 2015.
The fund, which is designed to reimburse Pakistan for the cost of counter-insurgency operations, paid $8.8 billion to Pakistan between 2002 and 2011.
But Islamabad stopped claiming the money as relations collapsed in the wake of the May 2011 raid that killed Osama bin Laden.
The crisis fell to a new low when US air strikes killed 24 Pakistani soldiers and Islamabad imposed a seven-month blockade on Nato traffic in protest.
"We received $1.118 billion from the coalition support fund last night," Syed Wasimuddin, spokesman for the central State Bank of Pakistan, told AFP.
He said it was the first installment since $633 million in December 2010.
Analysts have suggested that the $1.1 billion dollars is particularly beneficial to Pakistan as it tries to head off a new financial crisis created by poor tax revenues, mismanagement and overgenerous subsidies.
On Thursday, the US commander of Nato troops in Afghanistan held talks in Pakistan for the first time since the Nato supply lines resumed.
General John Allen later said that "significant progress" was being made in improving cooperation with Pakistan, which US officials have urged to do more to crush Afghan Taliban havens on its soil.
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Look who is laughing allthe way to the bank! Alright, Zardari enough of that!
@hamza khan: what makes you think the army is dictating to the US whether it would receive or not receive funds. these issues are being settled by the political parties in power and the ministry of finance. the army is not meddling in things like this. go read your own papers under the candlelight.
Its not Army dictating but rather taking instructions , and Pak army can only dictate to its own people and Govt, no one else! Just who is making the decisions in Pakistan ? May they be internal, foreign or finance ? Its obvious that the GOP is simply a tool for GHQ ! If you really think that is the case then you seriously need to review as to why the POTUS has not met with Zardari recently and yet the meetings taking place are solely between the Military ! Come on wake up and acknow;ledge the fact !
None of this money will go thowards modernization of road between Pakistan and Afghanistan or to the family of 24 soldiers.
It is sad to see Pakistan milking from a Nation who are bankrupt and going downhill (according to previous 90% Paki). For those who will say that this amount is owed, then USA is paying Pakistan for killing USA/ISAF and INNOCENT Afghans. Shame, shame.
Don't really need the money but aap kehte hain to rakh lehte hain.
@hamza khan @Maverick @what the...?
I for one will not be surprised if this facade of funding Pakistan is found to be an Indo-US conspiracy to dent Pakistan's image.
Pakistan is gonna be a KING again for six months
@Maverick: And is now feigning concern for US tax payers as an 'excuse' to berate Pakistan! What a loser!
@Cynical:
This is just another Pakistan-hater that vents his frustrations through these columns - and masquerades as a 'Brit' because he does not have the courage to own up to his Indian roots. But then again, if you were in his place, would you want to tell people you were actually an Indian?
This is a drop in the ocean compared to the damage that Pakistan has suffered as a result of supporting US/NATO misguided policies in Afghanistan- both in terms of the estimated loss to its economy and the actual loss of lives of its soldiers and of innocent Pakistani civilians.
The sooner the Americans get out of Afghanistan the better.
@Cynical: No, its not a case of sour grapes ! But rather a concern for US Taxpayers, as this is going to an ungrateful Nation, that seems to think its their god given right for others to fund them ! Pak Army did Make the statement to that effect, during OBL crises, so why the U turn ?
@Hedgefunder
What is your problem? A case of sour grapes?
Handout
Dear State Bank. Eid Mubarak. But I assure you Muharram is just round the corner! CoughForwardContractsCough
Proud Pakistanis.
And it Begins - prepare US insurgency in Pakistan by 2013.
Swiss banks are happy to get depostis!