The Defence Committee of the Cabinet (DCC) had earlier given a go-ahead to lift the six-month old blockade on Nato supplies passing through the country. The supply routes had been suspended after the killing of 24 Pakistani soldiers during an air raid last year on border posts located in Mohmand Agency.
The United States-led (US) coalition is expected to pay Pakistan a fee of $1,500 to $1,800 for every truck carrying supplies through the country. Officials, speaking on the condition of anonymity, said that the bill is estimated to go up to $1 million per day.
Officials in the US have said that they are not aware of how much cost they will have to bear.
The US, in return, has asked Pakistan to provide security for the supplies which are transported using private local companies, faster customs clearance and checkpoints, reveals the report. Pakistan has not provided security to trucks carrying Nato supplies in the past.
It is estimated that as many as 600 trucks will pass through Pakistan every day between now and next year.
Last week, Nato chief General Anders Fogh Rasmussen had tacitly linked Pakistan’s participation in the Chicago summit on Afghanistan with the resumption of supply lines.
Rasmussen had later extended an invitation to President Asif Ali Zardari. The presidential spokesperson had insisted that the invitation was unconditional and not linked to the opening of Nato supply routes or to any other issue.
Pakistan has also repeatedly demanded that the US issue a formal apology for the raid, while Washington has only expressed deep regret and offered condolences on the killing of Pakistani troops.
The demand for an apology has been the bone of contention between Pakistan and the US for reopening the supply routes. Acting Assistant Defence Secretary George Little had earlier said that the US was still noncommittal to a Pakistani demand for a formal apology.
Many set to gain from reopening of supply routes
Traders of looted goods, the military and militants in tribal areas are all set to gain from the reopening of supply routes.
A report in The Washington Post states that local transport associations have revealed the military indirectly controls 30% of Nato oil tanker contracts. The military had declined to comment on its share.
Traders of looted goods had earlier experienced a downward trend for their business, but are now expecting a boost. A trader who spoke to The Washington Times said that he was selling food, daggers, computers, technological goods and American flags at reasonable prices.
He said that suspension of supply routes had made it hard to meet expenses, but the reopening will be beneficial.
Militants in the tribal area too will benefit once supply routes reopen. They are known to demand protection money from transport companies and also attack trucks to steal the goods.
COMMENTS (70)
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365 what a figure?? It counts to the days in a year. A co-incidence??
Damned if you decide and damned if you don't!
@Ahsan Raza: You bet. But they also had to buy the guys in uniform. So the packge deal pushed up the amount by equal measure. Not a very good deal. You usually get it cheaper when you go for packaged deals.
@zain: Indians love you guys. Hence they do not want to see you suffer. After all both are estranged brothers. Right?
@Sajjad Ashraf: Sure they do. You had an example next door - Taliban. Now they are living in the mountains. Are you prepared to do that? If yes, then march on. But please do not expect too many to follow you. Not even from your very own "Ghairat" brigade. You would be surprized to see that the brigade would be smaller than a company.
@Batman: Most of the "reimbursements" don't qualify as reimbursements either. What a nice way to first light fires and then ask for money to douse it. That is when the establishment is not busy fudging figures and presenting false bills for reimbursements.
@Tribal Insafian: You sure these figures are right? All Pakistani governments have earned a lot of notoriety for fudging figures big time. Please have these numbers checked.
can anyone ever stamp their authority and refuse to accept the charity or to be precise the toll tax for using our soil to manipulate our neighbours into hating us even more with more hostility along the border and never ending feuds. When would we open our eyes, till we are dead and buried?
@Tribal Insafian: Totally cooked up figure. In pakistan, everything is a big lie. Thats why world has no faith and trust in pakistan. In anycase add to this 30% of cargo looted and thats a huge figure Frankly pakistan overplayed its hands and went on like a stuck record about 24 soldiers. More than that number have been killed and behaeded by pak taliban, and not one pakistani protested. perhaps because you cant expect Taliban to pay compensation! Pak is part of GWOT. it has been for 30 years. it has made loads of money from NATO/USA. Army and Generals are filty rich, and politicians and businessmen are enjoying lavish good times. Maximum number of lavish property owners in London, canada, New york are pakistanis. Pak university students too have lavish lifestyles.
we have to do what they say we are dependent on them
@Shuaib:
The entire budget of Pakistan is around $10 Billion. What sense does it make if you claim Pakistan is losing 7 times that amount?
The Pakistan GDP is valued around $150 Billion. If it was indeed losing 70 annually, it would have collapsed long long back.
Somebody in the Urdu Media is giving your wrong info. It just doesn't make any sense.
Also, how can USA help if some of the World's most dangerous Terrorists are found in Pakistan? Is it their responsibility or is it the responsibility of the security forces in Pakistan?
That is $1 million a day. Is that what NDN countries are also getting. Me thinks Pak settled for very less. Who was negotiating these deals?
@Tribal Insafian:
You may want to learn the corruption in Pakistan army and millions given by USA to Pakistan to reimburse fake bills for road construction by the army which squandered billions in buying India specific weapons in the name of fighting Taliban and AlQuada.
US aid to Pakistan- US tax payers have funded Pakistani corruption – research paper by Izeem Ibrahim -
http://belfercenter.ksg.harvard.edu/files/FinalDP20090608092009.pdf
its all about money money money
NATO is paying TOO LOW.
It is now cast in stone: The US PAK relationship is 100% transactional.
@M.Aswad Mehatb: Sorry, can't help it - other news sites are dull and boring - all about policies and progress and development. But Pakistani news sites are full of ACTION and MAYHEM and MURDER!!!
Really spices up my mornings!!!
Money can buy anything.
@Shuaib:
Cost $70 billion to fight the snakes Pakistan created and still nurturing. It is always money for Pakistanis. Eventually, Pakistan will sell its land piece by piece to the Saudi's and deposit the money in Dubai, buy Villas in the French Rivera, buy condos in London and Paris.
you can few million dollars per lose billions of dollars because of the atmosphere created due to this decision.
Sometimes,though for a change,we must discount the statistics provided by the governments and other institutions around the globe.We have no credible means to counter check them.The current global financial crises and Greece episode are the examples we can learn a lot.We hear politicians claiming loss of 50 to 80 billion dlrs but no one as for as I know has explained how those figures have been arrived at.There is no doubt country did loose huge sums of money and valuable lives as a front state in fighting war on terror.Whatever Pakistan received from NATO/USA as reimbursement towards expenditure incurred by Pakistan must not be considered as aid or loan. Closure of supply route to NATO/USA was not a popular or only option for Pakistan.It shows how ignorant and irresponsible advisors the ruling elite has on it's pay role.Country's foreign policy and day to day functioning of govt machinery should have no room for irrational emotion.
Your Most Obedient Servant ......... anyhow, the deal is not bad.
Oh what a shame ... for the Americans. They could've bought our national leaders out for much MUCH cheaper than this.
if military doesnt care abt the people then why should the politicians do ..
Just like an apple a day keep the doctor away, similarly, a million dollars a day keep all the worries away...!!!
We just need money, no matter who is doing what, let them do their job we just need $s. But these US dollars will direct go to swiss banks these $s not for the poor people of pakistan. I afraid of our leaders and politicians they will agree for everything when someone show them $. Oh Allah Please help pakistan and its people..
$365m for how long..? I heard troops are about to pull out of Afghanistan by 2014. It will be a payback time for Pakistan after that.
@Kanwal: This is Democracy, Pakistan style !
@zain: You too are free to express your views all over the world ! Cpme to UK publications and do express your views ! Its free too ! But when one keeps an Eye on their neighbours, it is with concern as their track record is pretty Lame and one simply can not afford more Unstability in their own countries !
Why there is no referendum in Pakistan to ask the nation what they want. I guess they know what we want. thats why they are doing exactly the opposite.
@Zain Try visiting TimesOfIndia or other Indian newspapers and you would find many Pakistanis commenting on Indian news reports. I don't see anything wrong as long as the comments are constructive. Remember we are human first, before our national, or religious identities. Curiosity crowd rings bell?
Secondly, I do think there is a moderator who gets most of the junk and abusive comments out.
So they say it right ..."Every thing has a Price..."
@Our Dear Friends in INDIA and rest of the world , who are too obsessed with our each and every matter ... Common !! Find another hobby ... Don't Worry We are not going to do any thing like what your media tells you in each and every news break ..Seriously !!
The $365 million per year may seem like a smaller amount, as posted above by some folks. However, the intangible benefits also need to be taken into account: avoided isolation, sanctions, and got an invitation for Chicago summit to decide things further.
This in no way means the lost lives are less valuable, but folks need to move on for the betterment of survivors. The alternative could have been pretty bleak.
@Zain - "Why our Indian neighbours are so interested in our internal matters?"
Because we Indians love you so muchhhh...
But seriously, are you asking us to leave you alone? Do you see the irony in that request?
Why not use the "transit fees" to pay down the circular debt and reduce loadshedding?
Why our Indian neighbours are so interested in our internal matters? - We spend 28 billion or 2800 billions, it is pakistan internal matter. Are we seeking funding from India ? .Are we pakistanies too special or important for you guys? Literally I see every other day, Indian coming up with lame statements on many topics on this website.
@True Muslim Paki: Well if thats blood money we should be grateful. Try getting any blood money from your beloved militants who routinely slaughter the captured soldiers. Instead of any punitive action we are glad and thankful, if they return the heads after a lot of third party pleading.
For God sake learn to live by principles. We are a rentier state. Doing things for money against honor is the world's oldest profession. There is no 'ghairat' in our position. Honorable nations act differently.
@John B: Why are you always so sarcastic. Any problem? Maybe you want us to carry out aerial bombardment of NATO convoys. Will that make you happy?
To all those who are complaining about the billions that you lost in the war on terror because of the militants that you did not create and the extremism that you did not nurture, there is a concept in economics called sunk-cost fallacy. Pls go through it and take renewed delight in the $365 mn that you have gained.
@Tribal Insafian: What a stupid comparison. 6.2 Billion $ is our estimate not accepted by anyone nor there being any possibility / avenue / mechanism for its reimbursment. On the other hand 365 Million is a real money coming through a real deal.
By the way a huge portion of the so called 68 Billion Dollar direct and indirect loss can be safely attributed to the local militants beloved to a significant portion of our rightist intelligensia.
Overseas Pakistanis remit about 12 billion dollars annually.
This government got 20b plus loans in last 04 years. Where are those? So this money will also go into their pockets
@ashok: 28 Billion Dollars? Double-check your data please. Check this link to know the exact figure of aid to Pakistan since 2001 (max 20 Billion including 9 Billion Dollars of CSF) http://en.wikipedia.org/wiki/Foreignaidto_Pakistan
Your relationship with America has devolved into a tariff per truck - doesn't that concern anyone? The trucks will eventually stop and probably sooner than you expect since America is already winding down it's war -- but Pakistan's need for American's political and economic clout will continue. You have all but ruined your relationship with American amd it's likely that a few years from now many will question whether it was worth it.
@ashok, I hate when people make up figures. $28 billion aid rofl most of which are reimbursments thus don't even qualify as "aid".
we are sovereign, we are sovereign, we are sovereign, we are sovereign, we are sovereign, we are sovereign, we are sovereign, . . PLz make me believe it!!
NLC about to make a pack of money!
This agreement shows that both Pakistan and the U.S. are rational and pragmatic players. One hopes that this relationship of convenience would go on without setbacks till 2014.
For those who may say 68 Billion Dollars is a cooked up figure by Anti-American propagandists (that is what all sane voices are called); here is the link from Tribune (about Pakistan's 2011 official Economic Survey) http://tribune.com.pk/story/181426/cost-of-being-a-frontline-state-68b
So the math is simple. Earn 365 mil at the cost of 24 soldiers. How's different from blood money?
@Shuaib:
70 billion dollars, Pakistan wouldn't be able to reserve 70 billion dollars if it was an initiative in 20 years. Yet alone having spent that amount on U.S. interests over the last 10. Pakistan has always profited from conflict in Afghanistan.
At the end its all about the money.
Pakistan has lost 68 Billion Dollars (according to Govt's own figures) since 2001 in 11 years. A simple division operation makes this amount about 6.2 Billion Dollars per annum. And here we are; sacrificing the nation & exposing it to a loss of 6.2 billion Dollars in return for 365 million dollars (0.365 Billion). What an idea Sir Jee.. 6.2 Billion Dollars loss (per annum) vs 365 million Dollar income
As I said earlier, in the end PAK will settle for the money. It has always been about money.
If Pakistan is providing security for the trucks, does this mean Pakistan has to bear the cost if petrol tankers are blown up? Could be a bad deal.
$365m in the pockets of politicians and generals. Its price of 24 soldiers...Our elite and generals don't give a damn about ordinary Pakistanis.
@Shuaib: "70 billion dollars"?? It is actually 70 trillion dollars, my friend. Kehne mein kya hai. FYI, Pakistan's (officially inflated) GDP amounts to $150 billion. In reality it is close to $100 billion.
Pakistan has lost 68 Billion Dollars (according to Govt's own figures) since 2001 in 11 years. A simple division operation makes this amount about 6.2 Billion Dollars per annum. And here we are; sacrificing the nation & exposing it to a loss of 6.2 billion Dollars in return for 365 million dollars (0.365 Billion). What an idea Sir Jee. 6.2 Billion Dollars loss (per annum) vs 365 million Dollar income.
Mashallah, Pakistan will again be rich !!! Thank you NATO! Thank you America !!
Front of Almighty Dollars if whole nation get killed our shurfah and armees dont even danm care.....
What a joke considering that this so called "war on terror" has cost Pakistan at least 70 billion dollars and ever increasing as well as over 35,000 people killed! What a small price!
Faustian bargain.