“Every dollar on account of the CSF will be taken from the US. It’s not a charity but is Pakistan’s money that it spent 14 months ago,” says Finance Minister Ishaq Dar. PHOTO: PID
Pakistan has vowed to recover every dollar of the Coalition Support Fund (CSF) from the United States and has said the $850 million outstanding amount is not a “charity but its right”, as the government targets the CSF and new $2.5 billion international bonds to shore up its reserves.
“Every dollar on account of the CSF will be taken from the US. It’s not a charity but is Pakistan’s money that it spent 14 months ago,” said Finance Minister Ishaq Dar here on Wednesday while addressing a press conference.
Dar’s comments came following reports that US Defence Secretary Chuck Hagel had threatened to stop CSF disbursements, if Nato supplies remained blocked.
At the press conference, Dar was sharing economic achievements of the first five months of his government. Despite all odds, the minister claimed an early victory on the economic front, saying in the first three months, economic growth had almost doubled to 5%.
He said there were challenges on the external front and the government had chalked out a plan to issue $2.5 billion worth of international bonds to shore up foreign currency reserves in addition to offloading shares of state-owned enterprises worth Rs200 billion in the stock market.
Dar said the government would recover $850 million of CSF, $800 million from Etisalat and get $1.2 to $2 billion in the auction of advanced telecom spectrum.
“I have taken up the issue of CSF with Chuck Hagel and he said Pakistan should fast track the process of submitting claims and the US will also ensure release of the amount on a fast-track basis,” Dar said.
He said Hagel had assured that $381 million would be released by mid-January while claims for $409 million had been sent to the US Embassy.
In addition to the outstanding claims, he said, another about $800 million had been spent from the budget in the current year and its claims would be filed soon.
GDP growth
Expressing satisfaction that the “economy has been put back on the right track”, Dar said during the July-September period the economy grew 5%. In the first quarter of the previous fiscal year, the growth was 2.9%. “Economic indicators were better than our expectations,” he said.
In the first quarter, the agriculture sector grew 2.5% against the target of 3.8%. But the push came from the industrial and services sectors, which outperformed due to clearance of circular debt and reduction in power outages.
The industrial sector grew 5.2% against the target of 4.5% and the services sector grew 5.7% against 4.5%.
Dar claimed that the figures were “authentic” and could be counterchecked. In five months, the government paid Rs101 billion in power subsidies.
Inflation
The minister admitted that inflation was increasing due to rise in power tariffs and levy of Rs200 billion new taxes in the budget.
“The caretaker government was responsible for these actions as they promised to the IMF to take both these steps and we just implemented them,” he claimed.
He said consumers of up to 200 units of electricity were exempted from the tariff increase. Prime Minister Nawaz Sharif ordered on Wednesday an inquiry to verify claims in a story published in The Express Tribune in which the issue of increase in tariffs for consuming less than 200 units had been highlighted, he said.
International bonds
Dar said in order to shore up depleting foreign currency reserves, the government had finalised a $500 million loan with the International Finance Corporation (IFC). Within two weeks, Pakistan will also give permission to the IFC to issue Global Rupee Bond worth $1 billion.
Pakistan Diaspora Bond worth $500 million will also be issued and the financial adviser will be appointed soon. For a $500 million Euro bond issue, the process is on track.
To resolve the dispute over $800 million outstanding payments, a team of Etisalat was coming to Pakistan in the third week of this month, he added.
Published in The Express Tribune, December 12th, 2013.
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COMMENTS (22)
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@Pakistani: Thanks should go to Pakistan for two-timing the world.
@Hedgefunder: Why should we do anything when you give us money for free? Don't blame us for your own stupidity.
This is not your god given right ! This is US's largesse ! Just what exactly have you done for these funds ? Except over inflating, them billing for services not provided etc... In most countries its called Fraud ! This Country has a niche for people in charge with arrogance higher than any mountain !
@optimist: What makes you think that @sarcasm is Indian. The anti-American stance seems to be more like Pakistanis.
@unbelievable:
And how would you know that I might like or don’t like USA?? Did I told you on solemn certificate?...and what if I do not like USA at all for argument sake??? Does not liking Uncle Sam warrant a crime??? Or you are just the jealous ex Aunty of Uncle Sam?
You didn’t pose a question at all mate, you just spew your dung without comprehension.
PAK had launched numerous military offensive/defensive ops since 09, the detail of which has been shared with the trilateral meetings of ISAF + AFG+ PAK all along but not with the tidbits like yours.
Further, CSF funds is as same for Pak as for German forces which are outsourcing their duties to Private Security Agency who had shot & killed innocent Afghan Civilians who were protesting outside one of the ISAF bases near Kabul.
The PAK section of CSF is more audited because it complies with the Karry Lugar Bill which accounts for each n every detail so that Pak can’t allegedly overbill the US.
Not surprised at all that you are indeed unbelievable.
regards,
Economy is too dependent on American aid. There's no economic improvement if US aid is removed.
@Adad Khan, Pakistani. Yeah I get it - you don't like the USA. You still haven't answered the question. What has Pakistan done to warrant CSF funds? You haven't launched a substantive military offensive since 09.
@unbelievable: US & its allied forces have been bombing Afghanistan and using Vietnamese type carpet bombing & thermal destruction strategy in decade long war. Only US spend more than a trillion in Afghanistan but they were not able to to make Afghanistan as american colony. Currently Afghan Taliban control 80% of Afghanistan, Nato forces pay them Billions of dollars to pass their supplies securely and not to fight with them. They can't even stop resistance of Mullah Umar's group. Only Haqqani group control 8 major province of Afghanistan. How Pakistan Army fight with them while US & Nato countries fought a decade long war and they were not able to conquer them.
More than 200,000 troops of Pak Arm forces are fighting a medium scale war with foreign (Indian) funded terrorists near Afghan border.
@unbelievable: ...and care to explain my good fella what US + NATO has done in Afghanistan after spending billions???. They cant even secure the trust of their puppets in Kabul let alone breaking the back of Taliban??
Its a pity, for the third world the subject of Geopolitics remains a conundrum.
remains,
Dar is taking Action. I am so glad he's stepping up to the plate. If PMLN team continues this way - they will get us out of this problem no doubt.
I voted PTI and I still feel Imran Khan and Asad Umar would have taken action faster, but I'm first a Pakistani and I am glad that Dar sb is taking action. I hope PTI team will work together with PMLN team and get Pakistan through this.
We all need to put Pakistan first.
Despite challenges so far govt has done comparatively better than predecessors. But challenges require consistent efforts to put the country on track of prosperity.
The only criteria PMLN uses to gauge Pakistan growth is the Riwind estate, if it looks green and expanding then Pakistan is growing and vise versa.
@ Sarcasm Why every Indian uses Lol before saying that something is not going to work well in Pak. . Congestion charge is being 'avoided' because of diplomatic immunity. Same way even Nigerians diplomats don't pay parking fines in New York. . Ever heard of little knowledge is dangerous?? .
So some people are complaining about loss of dollars from nato blockade but not about months of arrears that US has not cleared. LOL.
“Every dollar on account of the CSF will be taken from the US. It’s not a charity " +++++++++++++++++++++++++++++++++++++++++++++++++++++ True but ever dollar of the Kerry Lugar Bill is charity.
US has to also pay USD 80 Bn that Pakistan has lost due to the WOT +++++++++++++++++++++++++++++++++++++++ IK Pls take this up.
All lies! Prepare for freezing of FC accounts, shortages of imported commodities including fuel, and a default on the external front.
The problem is that no one believes the figures the government puts out. That is to be expected since the Statistics Division is in government's pocket. A Summary to make it an independent organization has been put up about five times, with no decision.
It does not take a genius to figure out why that is so.
Imran Khan would have made this money grow on trees.
As if America will give you like that? Lol. US had to pay around £3 Million to UK for the congestion charge imposed by London Borough, US didn't pay a single penny.