Pakistan seeks release of $3.2 billion from CSF

19 May, 2011

The Pakistan government has decided to vigorously pursue payment of an estimated 3.2 billion dollars associated with the war on terror and payable under the Coalition Support Fund but contested by the US. Well-informed sources told Business Recorder here on Wednesday that "Pakistan continues to pay a heavy price as a US ally in the war on terror.
According to a rough estimate, Pakistan has faced a loss of between $35-40 billion since 2001-02 while acts of terrorism in Pakistan continue to take a heavy human toll as well as damage basic infrastructure". Sources maintained that allegations by the US while contesting Pakistan's claims are baseless. "The Pakistani authorities have not fudged facts or figures", sources emphasised.
Michael Shavers, Director, Public Affairs, Office of the Defence, Representative-Pakistan (ODR-P) from US Embassy said in response to an online question asked by Business Recorder, "we have provided $8.88 billion dollars to Pakistan. Additionally, we are in discussions with Pakistani officials on reimbursements for the remaining portion of 2010 and we anticipate that those reimbursements will be forthcoming soon".
"Pakistan has suffered more than any other country due to the war on terror", sources maintained. They added that it was not wrong to say that the terrorism was the main source of instability in Pakistan. Essentially, both regional and national stability is necessary if terrorism is to be tackled and if the economic cost of terrorism is to be reduced
The US Defence Department is further tightening the oversight mechanism for tracking military equipment given to Pakistan, a new report from the Government Accountability Office disclosed. The report warns that defence officials don't have the proper oversight in place to keep track of items stored in the warehouse, such as satellite equipment, high frequency radios, helicopter parts, and night-vision gear.
Since 2006, US military assistance has included $1.5 billion to improve the counter-terrorism and counter-insurgency capabilities of Pakistani security forces operating along the country's border with Afghanistan, including $400 million for the Pakistan Counter-insurgency Fund (PCF) and $700 million for the Pakistan Counter-insurgency Capabilities Fund (PCCF).

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