US agrees to disburse $550 million blocked money

ISLAMABAD: The US has agreed to disburse 550 million dollars to Pakistan that had been held up since 2009, The Express Tribune has learnt.

The amount is part of the Coalition Support Fund for Pakistan’s fight against terrorism.

According to sources within the finance ministry, American authorities assured the Pakistani delegation during talks at a recent annual session of the World Bank and the International Monetary Fund (IMF) that the money has been released for the current year.

Sources said that of this amount, 300 million dollars are expected to be announced during Chief of Army Staff General Ashfaq Pervaiz Kayani’s meeting with US defence authorities. It is also expected that Pakistan will soon be receiving 300 to 350 million dollars.

According to sources, the US has to pay Pakistan a total of as many as 2.45 billion dollars to cover the expenses on the war against terrorism. An amount of 1.9 billion dollars is still left over from the money promised for 2010.

Pakistan last year sent 30,000 troops into South Waziristan to destroy Taliban strongholds in the region and is now facing demands from Washington to launch an operation in neighbouring North Waziristan. However, the Pakistan Army says it is “overstretched” and will only send troops when it deems possible.

Published in The Express Tribune, October 16^th, 2010.