War on terror aid: Pakistan received $33.4bn from US

Published: September 6, 2017
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PHOTO: AFP

PHOTO: AFP

ISLAMABAD: The US has sanctioned $33.4 billion for reimbursements to Pakistan during the past 15 years, 44% of which was on account of services that Islamabad rendered to support Washington’s anti-terror operations in Afghanistan.

This singular act denies Washington any meaningful chance to financially blackmail its non-Nato ally.

By excluding the $14.573 billion cost of logistics and aerial support, the approved civilian and security-related aid to Pakistan from 2002 to 2016 was only $18.8 billion, according to the statistics compiled by US authorities.

The data has been gathered by the departments of State, Defense, Agriculture, and the US Agency for International Development (USAID).

Withheld money is a repayment, not an aid, Pakistan tells US

Compared to the actual foreign aid of $18.8 billion to Pakistan, the finance ministry’s statistics showed that Islamabad sustained $123.13 billion losses on account of the war against terrorism since 9/11.

But Washington’s economic leverage over Islamabad has significantly reduced since 2014, as it came down to $1.6 billion per annum against the average of $2.3 billion per annum between 2002 and 2013.

This includes reimbursements from the Coalition Support Fund (CSF) that is technically not aid but service payments for providing logistical and operational support to the US-led military operations in Afghanistan.

By excluding the CSF-related payments to Pakistan, US assistance to Pakistan from 2014 to 2016 was $810 million per annum against the average of $1.4 billion during the 2002-2013 period, according to the statistics.

The flow of funds from the US to Pakistan saw another drastic reduction in 2017. US economic assistance historically remained around 1% of Pakistan’s budget, which can easily be met from other sources.

Security-related assistance

Since 2002, the US has given $7.96 billion in security assistance to Pakistan with an annual average of $530.4 million, which is 23.83% of total US budgetary appropriations for Pakistan.

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A major chunk of it – $3.8 billion – has been given under the Foreign Military Financing programme. Another sum of $2.35 billion has been given under the Pakistan Counterinsurgency Fund and Counterinsurgency Capability Fund.

The third major portion was $911 million, which the US gave under the International Narcotics Control and Law Enforcement programme.

Against the 12-year average of $576.7 million, the US gave $1.03 billion from 2014 to 2016 with an average of only $345 million under the security-related assistance to Pakistan. Most of this sum came under the foreign military financing programme.

Economic assistance

The US has given $10.85 billion in economic assistance to Pakistan during the past 15 years at an average of $723.5 million per annum.

The 12-year average was $788 million per annum. The economic assistance was about one-third of the total US budgetary appropriations for Pakistan.

Out of $10.85 billion, the US gave $8.5 billion under the Economic Support Fund, followed by $918 million under the International Disaster Assistance Programme and another $623 million in food aid to Pakistan.

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However, during the past three years, the economic assistance has come down to only $1.4 billion, at an average of $345 million per annum.

The majority of US economic assistance was off the budget, suggesting it did not benefit the finance ministry and either went into private hands or back to the US through third-party contracts.

The US could not achieve its long-term development objectives in Pakistan that it had set under the $7.5 billion Kerry-Lugar Act due to competing short-term political priorities of the State Department, according to a 2016 report by the USAID Inspector General’s Office. 

CSF disbursements

Since 2002, the US has given $14.573 billion to Pakistan under the CSF. The CSF payments were 43.65% of the total US payments to Pakistan during the past 15 years.

The country received CSF at an average of $971.5 million per annum – a ratio that is still over $815 million per annum, as this suits the US interests.

Where Pakistan needs US

Although the American civilian and military assistance has significantly dried up in the recent past, Pakistan still needs US support for securing loans at less harsh terms from the International Monetary Fund and the World Bank.

“Pakistan’s economic relations with the US has been on the decline for the past 15 years, as its share in exports, remittances and foreign direct investment have drastically reduced,” said Dr Ashfaque Hasan Khan, a former economic adviser to the finance ministry.

Although the US still holds tremendous clout on international financial institutions, at the same time those institutions operate under certain charters and cannot stop dealing with Islamabad.

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Reader Comments (15)

  • rk singh
    Sep 6, 2017 - 9:44AM

    peanuts? That is almost 15% of Pakistan’s GDP.Recommend

  • kp
    Sep 6, 2017 - 9:54AM

    33.4 Billions?? you see USA is clear a two faced snakes.
    They are giving huge financial support & separate direct military aid to pakistan while we are buying weapons by hard earned money? Are you hearing this blind modi bhaqts?Recommend

  • harkol
    Sep 6, 2017 - 10:13AM

    The whole concept that Pakistan was fighting a mercenary war on behalf of USA is absurd. Terrorism is a problem that troubles Pakistan much more than USA, which is at a distant shore. It can’t be Pakistan’s case that it will only fight if it gets paid. In any case, Pakistan made a show of fighting a war, while hosting all the top leaders of Al-Qaida and Taliban… USA is now refusing to be fooled any further.Recommend

  • Tufail Khan
    Sep 6, 2017 - 12:23PM

    The GDP of Pakistan is 283 billion dollars.The Aid received by Pakistan in the last 10 years is 18 billion so the aid received by Pakistan is less than 1% of its GDP .It is not even a peanut.Recommend

  • concerned
    Sep 6, 2017 - 2:11PM

    most of this AID goes to expensive contractors hired by the US embassy to basically tell the Govt what is already knows, so nothing actually gets into Pakistani economy

    we don’t need this aid. thank youRecommend

  • Komal S
    Sep 6, 2017 - 2:19PM

    @Tufail Khan:
    So sir, how much money do you need, so you feel the money is big enough. Your CPEC loan(not aid) is worth $50 billion, is that not even a peanut or just peanuts. But the way you are prostrating in front of Chinese for CPEC is quite amazing. By the way, you did the same with Americans, because it helped you balance the military budget needs. Now you cannot say peanuts, if it is please give it back to the americans.Recommend

  • hello
    Sep 6, 2017 - 2:45PM

    Fight,fight,fightRecommend

  • rhubard
    Sep 6, 2017 - 2:53PM

    And just how many Afghan Taliban has Pakistan killed after receiving $33.4 bn? Certainly no Haqqani. Recommend

  • Facts Identifier
    Sep 6, 2017 - 4:16PM

    Pakistan should slam US and return its money and get itself out from this US’s so called/created “War of Terror”. Pakistan has already lost more than 100 billion dollar and 70,000 people in this war. US wants control in territories that’s why it keeps its army there. Same is the case of Afghanistan. A super power country with world’s biggest and best technology is unable to win the war and wants help!!! Strange stupid fact. I think they just want its control in this territory.Recommend

  • Ashraf P
    Sep 6, 2017 - 4:38PM

    Pakistan should return the $33 billion. We dont need US money. It is a question of principles !!!!Recommend

  • Mast
    Sep 6, 2017 - 5:22PM

    @Komal that is Pakistan hard earned money for the services rendered in Foreign war albeit this cost us 70K lives, blame of terrorism hideouts and propaganda of ‘Isolation’ from your government. Comparing to what it cost us, no matter what name you call it, its nowhere near significant !Recommend

  • Sayan Chakraborty
    Sep 6, 2017 - 8:37PM

    That makes pakistan the richest beggar in the world.Recommend

  • Aleem
    Sep 6, 2017 - 9:39PM

    @rk singh:
    Learn to interpret data from an unbiased standpoint. You cannot take the entire sum over 14 years and then compare it to Pakistan’s annual GDP. On an annualized basis, the amount is much less.Recommend

  • Kulbhushan Yadav
    Sep 6, 2017 - 9:54PM

    @Mast:
    Kindly provide the true number of people died in Pakistan. I can not be more than 2- 3 thousands in all these years. Pakistanis are just kept churning the numbers to play victim card. No one in Pakistan has any data at all on how many people have died. Same goes for the so called 125 Billion USD loss. All these areas where fight was being fought, did not have any big economy center and there were no big multi nationals coming any way. Your economic woes are from mismanagement and not war on terror which you were not even fighting any way.Recommend

  • Bachu
    Sep 7, 2017 - 2:32AM

    Can you name any Haqqani because it’s a clan name and not a person’s name? Try naming [email protected]: Recommend

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