Pakistan got $15 bn for its services, logistic support

ISLAMABAD: Out of the total $33.4 billion provided to Pakistan, the US has reimbursed $15 billion on account of Coalition Support Fund (CSF) against services and logistic support given by Pakistan in the war against terror, which could not be termed ‘aid’ by any international standards.

Pakistani authorities, however, argue that total disbursement in all shapes and kinds, including the CSF, was less than $33 billion as claimed by the US. According to the data compiled by the Economic Affairs Division (EAD), available with The News, the US disbursed a total of $4.380 billion economic assistance from 1999-2000 to financial year 2016-17, indicating that just over $250 million was provided to Pakistan on account of economic assistance on annual basis in the last 17 years. From 1999-2000 to 2015-16, the US disbursed $3,681.16 million to Pakistan and in the last financial year 2016-17, the total disbursement stood at $699.66 million, so the total amount in the last 17 years stood at $4,380.82 million.

How much amount had actually gone back into the US through their own consultants, contractors and capacity building programs would be another aspect. Some experts opine that 40 to 50 percent amount had gone back to the US on these accounts.

The US provided $1.495 billion during 2002-3 to 2004-5, as they provided $1 billion capital grants in 2002-3 and $495 million in 2004-5 to finance accelerated repayment of the US debt. However, actually the net present value of the US debt stood at $200 million in 2002-3 and it would have touched $1 billion after a period of 32 years at the time of maturity but at that time it was propagated that the US had waived off $1 billion debt.

On account of CSF reimbursements, the US reimbursed $300 million in Oct-Dec 2001, $647 million in Jan-Dec 2002, $753 million in Jan-Dec 2003, $1.221 billion in Jan-Dec 2004, $915 million in Jan-Dec 2005, $1.070 billion in 2006, $453 million in 2007, $500 million in 2008, $1.294 billion in 2009-10, $743 million in 2010-11, zero amount in 2011-12, $1.806 billion in 2012-13, $1.050 billion in 2013-14, $1.452 billion in 2014-15 and $937 million in 2015-16. The US reimbursement stood at $550 million for the last fiscal year ended on June 30, 2017.

If the US tried to influence the IMF or the World Bank for stopping Pakistan’s assistance, it would be a violation of their charter as it was written in the IMF Charter that the Fund was bound to assist its member countries facing balance of payment crisis.

For development projects, the WB is obligated to assist its member countries. Both these institutions would violate their charters if they came under the influence of Washington. On the Foreign Military Funding (FMF), official sources said the US had assisted Pakistan in procurement of military equipment.

The FMF funding remained a major source of funding from 2001 to 2008 and on average such funding remained $500 million per annum. But afterwards it started shrinking in recent years. Since 2001, Pakistan has paid or is still paying $2.5 billion for US arms. This includes big-ticket items such as $1.43 bn for 18 new F-16C/D Block 52 Fighting Falcon combat aircraft and additional armaments for the aircraft at a cost of $629m.

Under the US’s Excess Defense Articles programme, Pakistan has received 14 F-16A/B Fighting Falcon combat aircraft and 374 M113 armoured personnel carriers at a reduced price. The EDA weapons are used arms, which the US gave to Pakistan during its withdrawal from Afghanistan.

Under the CSF, the US has given Pakistan 26 Bell 412EP utility helicopters valued at $235m. From the Pakistan Counterinsurgency Fund, the US gave 450 vehicles for the Frontier Corps, four Mi-17 multi-role helicopters and more. The programme ended in 2013. The US has also funded the training of over 2,000 Pakistani military officers.

According to the Center for Global Development, the United States began providing economic assistance along and military aid to Pakistan shortly after the country’s creation in 1947. In total, the United States obligated nearly $67 billion (in constant 2011 dollars) to Pakistan between 1951 and 2011. The levels year to year have waxed and waned for decades as US geopolitical interests in the region have shifted.

Peaks in aid have followed years of neglect. In several periods, including 1990s, the US had halted aid entirely and shut the doors of the USAID offices. This pattern had rendered the United States a far cry from a reliable and unwavering partner to Pakistan over the years, it added.