Dwindling foreign reserves: Pakistan urges US to fast track release of CSF dues

Published: December 6, 2013
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US Ambassador Richard Olson in a meeting with Federal Minister for Finance IShaq Dar in Islamabad, on December 5, 2013. PHOTO: PID

US Ambassador Richard Olson in a meeting with Federal Minister for Finance IShaq Dar in Islamabad, on December 5, 2013. PHOTO: PID

ISLAMABAD: 

With its foreign currency reserves hitting the dangerously low level of $3 billion, Pakistan has requested the United States to expedite the process of releasing about $900 million on account of services that Islamabad has rendered in global fight against terrorism.

The request to disburse dues on account of the Coalition Support Fund (CSF) was made by Finance Minister Ishaq Dar on Thursday during a meeting with Washington’s Ambassador to Islamabad Richard Olson. He urged the US to release the outstanding dues in order to avoid the looming threat of default on international payments.

“Early reimbursements of dues on account of Coalition Support Fund… will help Pakistan in improving its present foreign exchange reserves position,” Dar was quoted as saying in an official handout, issued by the Ministry of Finance.

But while the urgency to secure the release of CSF dues builds up on one hand, Dar’s request could not come at a more inopportune moment.

As the minister implored the US envoy to fast track the release of the fund behind the closed doors of Q Block, the workers, office bearers and parliamentarians of Pakistan Tehreek-e-Insaf were staging protests barely a few hundred yards away, outside the Parliament House, demanding the government stop the passage of Nato supplies through the country in retaliation to continuous drone strikes in the tribal areas.

The US Ambassador, meanwhile, remained non-committal about the timing of the release. An official handout stated that Olson assured the Finance Minister that he would convey Pakistan’s position to the US government.

According to the State Bank of Pakistan, the country’s foreign reserves have plunged to $3.05 billion as of November 29 – a sum sufficient to back an import bill of just three weeks. The reserves held by commercial banks stood at $5.19 billion, said the SBP. The outflows were not matching with the inflows due to heavy repayments to the IMF and other international lenders, and delays in taking certain policy decisions which the World Bank and the Asian Development Bank have demanded be implemented before release of loans.

The IMF has so far given only $547 million while another tranche of roughly the same amount is expected to be approved by the lender’s executive board before the end of this month.

For the current financial year, Pakistan has budgeted $1.2 billion on account of CSF. However, the US has so far disbursed only $322 million. Around $900 million remain outstanding. Pakistan hopes to receive at least $300 million more in coming weeks.

It is not yet clear whether the Obama Administration has notified the Congress about releasing another tranche to Pakistan on account of CSF. The administration is required to give a 15-day notification before it can release the amount. Christmas and New Year holidays in the US will start from December 23, which may adversely affect Pakistan’s bid for early disbursements.

 

Published in The Express Tribune, December 6th, 2013.

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Reader Comments (11)

  • Raj - USA
    Dec 6, 2013 - 5:47AM

    Pakistan has no friend or sympathizers in the world now. China is smiling and waiting for an opportunity to buy more of Pakistan’s territory. UAE is not paying up the $800 million due to Etisalat, US investor is not paying the $45 billion to Malik Riaz’s project, anonymous donor of $1 billion has not showed up and US is withholding CFS dues.

    With the stopage of NATO supply routes, aakri pathi be gaye, ab tho pathe he kane padenge. Shardi ke mousam me pathe bhi kam hain.

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  • gp65
    Dec 6, 2013 - 6:07AM

    “For the current financial year, Pakistan has budgeted $1.2 billion on account of CSF. However, the US has so far disbursed only $322 million. Around $900 million remain outstanding. Pakistan hopes to receive at least $300 million more in coming weeks”

    Just because Pakistan budgeted the amount of 1.2 billion does not mean US owes this amount to Pakistan. When Pakistan government does nothing to stop Imran Khan and his band of merry men obstructing NATO supply route – not sure if US owes anything more than what it has already given.

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  • polpot
    Dec 6, 2013 - 7:52AM

    3 weeks Dollar Reserves…
    ++++++++++++++++++++
    Look out for Rupee falling to new depths…..

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  • Jibran
    Dec 6, 2013 - 8:55AM

    What services did Pakistan render under coalition support program? It looks like it’s role had been more of an enemy than an ally. US government should refuse to sanction all aid, unless Pakistan takes concrete action against the terrorists.

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  • Arshad
    Dec 6, 2013 - 11:14AM

    Now we are begging the us for money? ShamefulRecommend

  • Dhaka
    Dec 6, 2013 - 12:02PM

    They also start begging with us.Our leaders should be vigilent for these pakistani traps, as our country never forget what happened in 1971.

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  • Ahmed
    Dec 6, 2013 - 12:07PM

    We do not possess any shame in asking fund from US.Our country is doomed and neither any hope for improvement in future.It is better for our army to cut defense spending and aim
    to uplift financial situation.

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  • unbelievable
    Dec 6, 2013 - 6:39PM

    So what have you done to warrant these funds – let alone deserve to be paid early? Obama was correct in meeting with Sharif – new guy deserves a chance – but I doubt Obama will take another phone call from any Pakistani – your word means nothing.

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  • Dec 6, 2013 - 8:53PM

    Pakistan should concentrate on building more Nukes. This act will inspire confidence in investors and send more money your way. Even the evergreen friends “Chinese” are standing by the wayside and smiling. They waiting for you to ring the bell of desperation and then lend you some money in return for picking up more strategic assets (strategic to them). Perhaps, when you guys are hungry, you would now have the choice of eating as Bhutto said ” Grass” or Nukes.

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  • csmann
    Dec 6, 2013 - 9:43PM

    IK will ruin the country for his self-aggrandisement.

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  • optimist
    Dec 7, 2013 - 1:24AM

    All ‘intelligent’ neighbours above:
    .
    We are not a limited company that will disappear. We are a country of 200 million people.
    .
    We know how to bounce back. This is not the first time we have seen such things..
    .
    As far CSF, we are owed money for using our soil. It is not aid. Many countries take aid (including India) but that doesn’t give other the right to dictate. The aid is given as a diplomacy and to ‘create’ friends (NGOs) in the country… it is not a favour! They are welcome to stop the aid (in other words starve their agent NGOs).
    .
    CSF is not aid. US has two options. Stop using our logistics or pay up the agreed amout. It has been agreed in advance just the payment is often delayed!
    .

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