ISLAMABAD:
The United States conveyed to Pakistan that it will soon disburse the Coalition Support Fund (CSF) that has been withheld for several months, in an attempt to thaw bilateral relations between the two countries.
“Both the governments are engaged on the issue of disbursements of CSF and we are expecting that the US will soon release the amount,” Finance Secretary Abdul Wajid Rana said, without giving further details.
He was speaking to the media after attending a meeting of Senate Standing Committee on Finance.
His statement indicated that the two countries have been engaged in backdoor diplomacy despite apparent strains in ties following last year’s Nato airstrikes on Pakistani border posts, killing 24 soldiers. The crossborder raid prompted the government to block the Nato supply routes and review cooperation with the US.
The CSF was established by the United States in 2001 to support 27 nations, including Pakistan, to partially cover costs they incur during the war against terrorism.
For the current financial year, Pakistan budgeted for $1.3 billion from the US on account of services it rendered while fighting the global war on terrorism. Contrary to that, the International Monetary Fund (IMF) has assessed that the country can get $400 million at best. Despite lapse of seven months, the US has not disbursed any amount from this. Shortfall in the budgeted amount is likely to widen Pakistan’s deficit.
The total reconciled CSF amount is $2.5 billion as opposed to the $3.4 billion bills Islamabad sent to Washington. The US rejected claims worth approximately $900 million.
However, it was not clear whether Islamabad has resumed billing for CSF charges. After the raid in Abottabad that killed Osama bin Laden, Pakistan had stopped sending bills to Washington.
Earlier, while briefing the Senate panel, Rana insisted that the government was hopeful that it will be able to materialise anticipated external inflows including the CSF and $800 million from Etisalat.
“On the basis of these inflows the government still assumes that it will be able to achieve its revised budget deficit target of 4.7 per cent of Gross Domestic Product,” Rana said.
The committee noted that the government may not be able to achieve its revised budget deficit target of 4.7 per cent. The IMF also projected a budget deficit of 6.9 per cent in its Article IV report on Pakistan.
“It seems that the finance ministry does not want to correct mistakes pointed out by both the standing committee and the IMF”, said Senator Ahmad Ali of the Muttahida Qaumi Movement (MQM).
On account of project-based assistance, Pakistan has assessed to receive $403.3 million from the US. “From July through December the country received only $40.9 million,” said Secretary Economic Affairs Division Dr Waqar Masood.
Under the five-year Kerry Lugar civilian aid package, the US has promised to give $7.5 billion but in the last two years it disbursed only $650 million.
Pak-IMF relations
The finance secretary said that Pakistan and the IMF have agreed to remain engaged in future and an IMF mission may visit Islamabad in May or June this year under Post Programme Monitoring mechanism. He said the IMF Executive Board has decided to keep monitoring Pakistan’s economy and will hold biannual reviews until Pakistan returns the entire borrowed amount.
In fall 2008, Pakistan had signed a two-year bailout programme to avoid default on international payments. It borrowed $8.9 billion from November 2008 to May 2010.
However, the secretary said that Pakistan has not yet decided whether to request for a new programme or not but it was not immediately seeking any shadow programme.
Published in The Express Tribune, February 28th, 2012.
COMMENTS (21)
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IEDs should be monitored and government need to take action against the use of IEDs.
War on terrorism can be won when the government will develop a clear cut strategy to stop the production of improvised explosive devices.
Dear Centcom if that is who you are: I could write a one hundred thousand word, and more, dissertation explaining all the dreadful things America has been responsible for since World War 2. After you have carried out your dreadful deeds you then try to square them off with propaganda, and then infer that protesters are conspiracy theorists. However, my reply to State Department spokespeople who accuse people of being conspiracy theorists when they speak logic and the truth, is as follows : a famous American President, Abraham Lincoln, once said : "You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time". I am afraid Centcom that this is the situation now.. Many disbelievers, who are growing exponentially, just do not believe American officialdom, or the military, and it is becoming very apparent that although Pakistan authorities are doing their best to cooperate with America you are making it very difficult for them and they do not trust you, but of course, who would or could unless they had an I.Q. less than 100 ? What you have to remember is that when you have been long gone from the Pakistan/Afghan region, say in twenty years, the inhabitants will still be cleaning up after you, children getting blown up by unexploded cluster bombs, and deformed babies being born due to damaged DNA from your use of so called depleted uranium weaponry. But then you have had plenty of experience in creating nuclear wastelands. The latest one being in Fallujah, Iraq, and of course we still have to determine the long term damage in Libya, which until 2011 was a delightful country to live in. Why don't you go home and let the world solve its own problems. After all they may kill a few of their own, but it would be difficult to reach the dizzy heights of dead people achieved by the Americans.
@US Centcom: I agree with your valuable comments against my comments but would you like to explain that what about US' and NATO's troops' innocent people's slaughter in Afghanistan on the name of terrorism's eradication?And would you like to explain that who is creating the causes of producing and spreading terrorism in the world and who coerced Taliban to do terror activities against USA?Afghanistan's present conditions were never in Taliban's regime and especially US' and NATO's troops attack on Afghanistan as have been now-a-days under US' and NATO's command.
@US Centcom: Dear Centcom, The main problem we mere mortals face, out in the wilderness without access to the inner machinations of U.S. intrigue, is what is the truth and what is a lie. We know that the Americans tell terrible lies, and use overblown rhetoric in their propaganda to cover them over. I could reiterate many items the Americans have lied about over the last twenty years or so, but let us settle for one. That is Iraq ! Washington unleashed a barrage of propaganda nonsense which said that Iraq had nuclear weapons, and in their twisted minds this justified all out war against a country that was in no position to withstand the grim reality of American brutality. The Americans killed about one and a half million people, destroyed Iraq's infrastructure, have taken control of Iraq's oil, and have not helped the Iraqis get back on their feet. They, the Americans, have been doing similar things in Afghanistan, Pakistan, Libya, and are trying it on with Syria and Iran. In other words, a domino effect where they pick Muslim countries off one by one. You may have noticed that the Americans are doing the same thing in Pakistan by stirring up trouble in Baluchistan, and provocatively creating militant groups all over Pakistan by bombing innocent people with drone aircraft. I have not had personal knowledge of my loved ones being murdered by American bombs but I can imagine that those who have would tend to acquire a rifle and go looking for Americans. They are in effect trying to protect their loved ones and the Americans have the audacity to call them terrorists. We certainly have a problem. However, I do not think the current American plan is the solution. Our so called U.S. saviours are the problem. Unless serious round table conferences are held with all the bodies concerned, there will be no solution to the current American made disaster.
Dear Ahmer Ali,
Are you still in denial about the threat terrorist organizations like the TTP pose to the great nation of Pakistan? Is it not enough that these terrorists have already succeeded in killing thousands of innocent people inside Pakistan alone? Do you not think the time has finally come for us to set aside conspiracy theories and bring justice to the thousands of relatives of those killed in the suicide bombings throughout Pakistan? These terrorists regularly target our forces on both sides of the border, and we have lost thousands of our brave soldiers in fighting these terrorists. How do you think their families feel when someone refers to terrorists’ atrocities as “fake terrorism”? Are you not mocking their efforts by being oblivious to the harsh reality of dealing with these terrorists? Our failure to acknowledge the truth provides these terrorists more leverage to continue their dark and evil agenda against our nations. Our governments realize the importance of eliminating this menace from the region, and that’s the reason you see our nations working out the differences for the sake of achieving our common mission.
Yes we provide services for our masters and they pay us with their own will
@kamran:
Google Flase Flag Operation and who invented it. That will give you an idea if its fake or not.
More money for the nation of beggars =)
".....After the raid in Abottabad that killed Osama bin Laden, Pakistan had stopped sending bills to Washington......" - Why stop billing, Ayman Zawhari still around. Milk the cow...lol !!!!
Improvised explosive devices+ ignorance= recipe for doom
Improvised explosive devices are extremely lethal. Stop its production otherwise Pakistan would be doomed.
US and other countries need to assist us further because our government has clearly failed to address the issue of terrorism and the improvised explosive devices.
EU has decided to provide Pakistan with 10 robots and 10 vehicles to help us in our fight against terrorism. These gadgets will help the security forces to spot the improvised devices.
@Ahmer Ali: Are you sure its fake many of my Pakistani brothers are dying.
@Mirza Better known as no money no honey. Forget aid, these people dont even reimburse as for the costs we have incurred, like the road tax on the supply route. And then they have the nerve to complain...
Look Pakistan's masters threw some pieces for us.
Congratulations and now kill more and more innocent people on the name of fake terrorism so that you could please and get more and more $$$$$ from worldly master USA as a beggary.
Everything is now normal and it is called quid pro quo.