The United States has released more than $633 million (about Rs55 billion) through the Coalition Support Fund (CSF) to Pakistan in an apparent move to persuade the government to launch a full-scale military offensive in North Waziristan.
The amount was long overdue, as the Obama administration believed to have held up the funds over suspicions that Pakistan was fudging figures on the costs it incurred on its campaign against extremism.
The CSF was established by the US in 2001 to cover some of the cost issues by the countries in the fight against extremist violence.
It covers 27 nations, including Pakistan, for logistical, military and other forms of support provided to the US in support of overseas contingency operations. Under the programme, Pakistan periodically submits expenses incurred in support of contingency operations.
Pakistan has a pivotal role in America’s battle against extremism. It played a significant role in the overthrow of the Taliban regime in Afghanistan by providing logistical support to the international coalition forces. The country also serves as the main supply route for the US-led Nato forces fighting the Taliban insurgency in Afghanistan.
The latest reimbursement covers the period from January to June 2010.
Over $110 million was previously released in early November to finalise the reimbursement of 2009 claims of the Pakistan government.
“Since 2001, the United States has reimbursed Pakistan approximately $8.76 billion in CSF,” said the US Embassy Spokesman. State Bank Governor Dr Hafiz Kardar confirmed the reimbursement, saying the money will be transferred by December 28.
The development will help the government, facing the daunting task of managing the country’s economy, bridge budget deficit. The government expects another tranche of about $700 million in CSF from the US in the ongoing fiscal year.
Analysts say the latest reimbursement will put extra pressure on the government to meet the longstanding US demand of taking certain militant groups head on.
Washington suspects Pakistan military has hands off approach to some militant outfits namely the Haqqani Network and Lashkar-e-Taiba.
But Islamabad points out resources constraint as one of the major reasons behind its reluctance to open a new front.
Prime Minister Yousaf Raza Gilani had on Thursday insisted that Pakistan will not act on the dictation of any foreign country to carry out operation. The government also says it is not fighting America’s war.
But critics and right-wing parties question such claims, saying if it is Pakistan’s war then why it is being fought with American money.
Published in The Express Tribune, December 25th, 2010.
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