CSF reimbursement

The news that Pakistan will not be able to receive $300 million from the Coalition Support Fund (CSF) because it is not taking sufficient action against the Haqqani network has been received in the country with a degree of disdain and discomfort. According to the Pentagon spokesman, Adam Stump, on 4th August, 2016, "the funds could not be released to the government of Pakistan at this time because the Secretary has not yet certified that Pakistan has taken sufficient action against the Haqqani network [as] per the fiscal year 2015 National Defence Authorisation Act requirement." The certification was required under an amendment to the Act that authorises reimbursements to Pakistan from the CSF on the condition of an annual certification to the Congress. Stump also said that Defence Secretary, Ashton Carter, had decided to request re-programming of the funds to "retain the ability to use these funds for other requirements." The Pentagon, nonetheless, acknowledged Pakistan's efforts to stamp out terrorism from tribal areas bordering Afghanistan, saying that the decision to withhold $300 million of CSF reimbursement does not reduce the significance of the sacrifices that Pakistan's military has made over the last two years. It was also noted that "Pakistan's efforts have reduced the ability of some militant groups to use North Waziristan and Fata as a safe haven for terrorism." However, the Afghan Taliban and the Haqqani network continue to operate in other locations in Pakistan, according to Stump.

The US decision to withhold a part of the CSF reimbursement, in our view, is highly disappointing and based on undue expectations and faulty assumptions. It may be mentioned that CSF, a US Defence Department programme, is meant to reimburse allies that have incurred costs in supporting counter-terrorist and counter-insurgency operations. Pakistan had already been reimbursed $700 million out of $1 billion authorised for fiscal year 2015 from the CSF. With the Secretary's decision not to issue the necessary annual certification, the balance amount of $300 million will not be available. This decision is clearly a sign that while the US sees some progress by Pakistan in its military operations in North Waziristan and Fata, much more is expected to be done in the case of the Haqqani network to win the US favour. The US Congress and the government seem to believe that withholding of CSF or a part of it could force the Pakistani government to take 'action' against the Haqqani network. Pakistan, nonetheless, has other ideas and as a sovereign country, it has to look after its own interests. Responding to the US allegations, the Foreign Office Spokesman, Nafees Zakria, said that "Pakistan does not draw any distinction between any terrorist elements within Pakistan" and rejects harbouring militants. There are limits to how much Pakistan could do as it is already fighting multiple militant groups and is wary of a "blowback" in the form of more militant attacks on its soil. Pakistani embassy in Washington also tried to minimise the negative perception of the incident by issuing a statement to the media that CSF was only one of the necessary co-operative arrangements between Pakistan and the US. It was also stated that despite this US move, "Pakistan will continue its fight against terrorism and ensure that areas cleared by the security forces do not slide back into the control of terrorist networks."

Whatever is said and done to pull the wool over public eyes to soften the view of growing tension between Pakistan and the US over military action against the Haqqani network, the withholding of a part of the CSF is a clear indication that the Pentagon is not satisfied with Pakistan's military effort in North Waziristan and wants an indiscriminate action against all the militant groups in order to reduce their capability to hit various targets in Afghanistan. While the US desires to get its money's worth and wants Pakistan to toe its line in accordance with its own preferences, Pakistan obviously cannot fight on all the fronts simultaneously and also wants to be selective in determining the order and size of its engagement with various factions in Fata and elsewhere. These two divergent views of course cannot be bridged and, therefore, the once closer relationship between the two countries was expected to come under some strain at one point or the other. As for the impact on the economy of Pakistan, since CSF is a revenue source for the government and is used for budgetary support, fiscal deficit would rise and C/A deficit would widen further if it does not materialise. More importantly, CSF reimbursements enable the US to support Pakistan's ongoing counter-terrorism efforts in a manner that serves shared interests of the two countries. The growing distrust between the two countries is going to encourage Taliban and al Qaeda. The stoppage of CSF would also adversely affect Washington's ability to influence Pakistan's policies and make it harder for the world's sole superpower to achieve its military objectives in Afghanistan. All said and done, Pakistan needs to learn an important lesson from this experience. In future, it must rely on its own physical and financial resources to fight its own battles. There is no such thing as a free lunch.