Unpaid cash: US likely to release $600m under CSF

Sources say breakthrough achieved during talks between senior US and Pakistan defence officials in Rawalpindi.

ISLAMABAD:

The United States is expected to release $600 million in financial assistance under the Coalition Support Fund (CSF) to Pakistan in the latest sign of improving ties between the two otherwise disenchanted allies.

The breakthrough on CSF was achieved during two days of talks between senior defence officials of the two countries in Rawalpindi, official sources said.

The meeting of the Pakistan-US Defence Consultative Group was attended by Pakistan’s Defence Secretary Lt Gen (retd) Asif Yasin Malik and US Undersecretary of Defence for Policy Dr James N Miller, among other senior officials from the two sides.

The group, which last met in May 2011 in Washington, is the primary forum for exchanging views and coordinating defence policy with the goal of strengthening cooperation to support each country’s security interests.

At a joint news conference with the head of the US delegation, Malik hinted at progress on the CSF issue, saying significant headway had been made to ensure the reimbursement of held up payments under CSF, a programme designed by the US in 2001 to reimburse countries for the cost of counter-insurgency operations.

In August, the US released overdue payments under CSF amounting to $1.2 billion, the first installment of its kind since December 2010, after Pakistan agreed to reopen vital land routes for foreign forces stationed in Afghanistan.

As a result of the breakthrough, the government subsequently submitted fresh claims of $600 million for the period between May and November in 2011.

Furthermore, Pakistan requested the US to release the amount during the ongoing fiscal year so that it could bridge the budget deficit.

A senior Pakistani official told The Express Tribune that the US side had indicated that the funds would be released soon.

A joint statement issued after the talks also confirmed that the two sides discussed CSF and other defence requirements of Pakistan.



“Recognising the enduring security requirements on both sides of the Afghanistan-Pakistan border, the two delegations agreed to cooperate on a prioritised set of Pakistan’s defence requirements which will inform follow-on consultations on security assistance,” the statement added.

Both sides acknowledged that bilateral counter-terrorism cooperation is critical to weakening extremists and “underscores the importance of continuing cooperation to complete the defeat of al Qaeda and its affiliates in the region.”

The two countries affirmed their mutual commitment to a strong defence relationship which they stressed should focus on achieving common objectives. Pakistan also conveyed its position on the US drone campaign inside the country’s tribal belt, according to the defence secretary. James Miller noted that the discussions were held in an amicable atmosphere in the wake of tense relations between the two countries last year. “The ties are on the mend now,” he added.

Khar-Clinton meeting

Meanwhile, as part of their regular consultations, Foreign Minister Hina Rabbani Khar and Secretary Clinton met in Brussels to discuss US-Pakistan relations and Afghanistan, according to a statement issued by the foreign ministry in Islamabad.

They discussed counter terrorism, support for the Afghan-led and Afghan-owned peace process, the post 2014 transition in Afghanistan and discussed various measures to further strengthen bilateral relations including the need to move the US-Pakistan economic agenda from aid to trade, emphasising market access and investment.

According to a readout provided by a senior State Department official, the two leaders reviewed progress in their countries’ relations based on their commitment to identify shared interests and act on them jointly.


Published in The Express Tribune, December 5^th, 2012.