THURSDAY JULY 05: Coalition Support Fund: Pakistan to receive $1.5 billion by December

KARACHI: Pakistan will receive an amount of $1.5 billion of Coalition Support Fund (CSF) by December 2012 after the government resumed Nato supplies following apology from the US on Salala checkpost incident. Sources in the ministry of finance said this amount was pending with US for long time although approved by the US authorities, payment to this effect was stopped due to suspension of Nato supplies after Salala incident which heightened tension between Pakistan and the US.
Out of total payment under the CSF, Pakistan will receive some $800 million during the first quarter of current fiscal year 2012-13 (FY13), sources said and added that the remaining amount will also be received till December this year. The CSF payment will support the depleting foreign exchange reserves, which fell to $15 billion as on June 22, 2012 due to slow foreign inflows and rising foreign payments.
The CSF is a fund, created to reimburse expenses borne by Pakistan for the cost of country-insurgency operations. Since 2004, Pakistan received $8.3 billion on account of CSF and with payment of pending amount the total inflows will surge to $9.8 billion by end of this calendar year.