ISLAMABAD: US has to give Pakistan $9 billion on bills pending before USadministration on account of the Coalition Support Fund (CSF). Minister forFinance Miftah Ismail confirmed there were pending claims of $9 billionagainst the US on account of CSF dues.
The US Congressional committee had recently proposed $350 million of thetotal $700 million for Pakistan but half of amount may not be released tillthe defense secretary certifies to Congress that Islamabad has takenactions against the Haqqani network.
The Ministry of Finance hopes that Islamabad would be getting Rs15.204billion on account of reimbursement of CSF amounts from USA as revisedestimates in outgoing fiscal year 2017-18 against initial estimates ofRs141.797 billion. The government has estimated that it will get justRs15.9 billion on account of defence receipts from USA in the budget2018-19.
After becoming an ally of US-led war against terror, Pakistan and US placeda mechanism for reimbursement of bills amount after launching militaryoffensive against terror networks since 2001.
“In last 17 years, Islamabad received $14 billion from USA on account ofCSF amount,” said one top official of Finance Division in backgroundinterview and added that over $9 billion claims were still pending beforeTrump administration.
Under the CSF mechanism, Pakistan claims all such expenditure which werealready incurred for mobilisation of troops and launching of offensiveagainst terror networks in tribal and other areas adjacent to Afghanistanand then US reimbursed the amounts after hectic reconciliation.
“Even reconciled amounts has not yet been fully paid back by USA,” saidsenior official and added that Washington provided peanuts to Pakistan sofar on this front.
Another official said that Pakistan had to bear expenses of war on terrorafter getting borrowings from domestic and foreign lenders keeping in viewyawning financing of budget deficit on which the government to borneinterest rate which was paid with taxpayers money. There is need toincorporate cost of debt servicing on the claims sent out to USA on CSF,said the official.
On the other hand, Pakistan’s official document Economic Survey for 2017-18states that during the last 17 years, the direct and indirect cost incurredby Pakistan due to incidents of terrorism amounted to $126.79 billionequivalent to Rs10,762.64 billion.