The Reality of US Aid to Pakistan

[MastanKhan]

Mastankhan, I agree with you in a sense for I always thought that OBL was rather curse to the Muslim World, but what is it in you that compels you to say only those things that please the warmongering americans and the indians? Do you have business dealings with them?

Hi,

You got that right---I do indeed have business dealings with both of them and many others---but my priority is pakistan and pakistan alone---. If what I am saying pleases those two---that is not my intention----my goal was for pakistan to find an easy way out of this mess and that would have been taking out OBL and his team in kandhar at any cost.

Bottomline is that unless you don't learn to love your national interests first---you will never do things for the greater good of the country either in the short run or the longer run.

 

[AgNoStiC MuSliM]

It is widely known that Pakistan has exaggerated claims with regards to military spend as the forensic accounting of the invoices have been examined by obomas administration, something which wasn't present when Bush was commander and chief.

It is widely speculated that Pakistan has done that, and the propaganda out of the US indicates the same, but there is little evidence that there has been any major and deliberate exxageration of invoices submitted.

The 'widely known' stuff you talk about is almost entirely based on US establishment propaganda fed to the US media through its 'anonymous sources'. There is no proper official account of the invoices the US disagrees with and the Pakistani explanation for those invoices.

Try not to sell out your country so much that you agree with an aggressive and hostile foreign power's media propaganda without any objective, credible official account from both sides on the issue.

Bloody liberal traitors.

Needless to say, this "aid" is recycled back into the US economy by the military which has a penchant for acquiring US hardware and tech.

Outside of the F-16 program, which was drastically cut down to 18 Jets and the associated training and hardware, Pak Mil purchases from the US have dropped dramatically.

The average citizen doesn't see a rupee of this. You know there's a problem when nearly 20% of the national budget is spent on a bloated army and ONLY 1.2% is allocated on education.

The latest budget devotes about $5 billion US to defence. Pakistan lost over $3 billion from the Sate Owned Public Enterprizes that are corrupt and cause even more losses indirectly thruogh their inefficiencies and corruption.

Perhaps you should call for them to be sold off or shut down and pump that $3 billion into education, health and development.

 

[AgNoStiC MuSliM]

Well Pakistan is getting money in US dollars. And spending money on rupees. It is like export economy. In India we have special export zoned where no tax and new road and some special subsides. These are for getting foreign exchange.

Not necessarily - if Pakistan is providing logistical support in the form of jet fuel and other oil products for NATO, then those are more than likely imported, and Pakistan spends FE on them, before getting reimbursed by the US.

In addition, given that there is an almost two year lag time currently between Pakistan spending money on logistical support for the US, and the US reimbursing Pakistan, Pakistan bears the interest cost, and does not pass it on to the US. Nor does Pakistan charge the US for the cost to its infrastructure in supporting the US/NATO mission, especially the road networks.

 

[T-Rex]

Hi,

You got that right---I do indeed have business dealings with both of them and many others---but my priority is pakistan and pakistan alone---. If what I am saying pleases those two---that is not my intention----my goal was for pakistan to find an easy way out of this mess and that would have been taking out OBL and his team in kandhar at any cost.

Bottomline is that unless you don't learn to love your national interests first---you will never do things for the greater good of the country either in the short run or the longer run.

It's not to hard to tell that you have business dealings with the americans and the indians. Your judgement is always clouded by those business dealings.

 

[AgNoStiC MuSliM]

Threads merged.

 

[LEGENDARY WARRIOR]

Not necessarily - if Pakistan is providing logistical support in the form of jet fuel and other oil products for NATO, then those are more than likely imported, and Pakistan spends FE on them, before getting reimbursed by the US.

In addition, given that there is an almost two year lag time currently between Pakistan spending money on logistical support for the US, and the US reimbursing Pakistan, Pakistan bears the interest cost, and does not pass it on to the US. Nor does Pakistan charge the US for the cost to its infrastructure in supporting the US/NATO mission, especially the road networks.

Well, I think they should??

 

[MastanKhan]

It's not to hard to tell that you have business dealings with the americans and the indians. Your judgement is always clouded by those business dealings.

Hi,

Maybe you should try it as well----humanity is a touch and feel business. You might find that the hate that you may have, it has been there because of the lies that you have been told.

I will guarantee you one thing---even though there are no guarantees in life----in a room full of american---before the Bin Laden killing---without prejudice---half the americans would have liked the pakistanis and the other half the indians just like that---possibly more so towards pakistan---.

The rest was upto you to how you could have taken this relationship any further----which at this stage seems to be going against us as of now-----. But remember that we are in an ever changing environment----things can change in our favour inthe coming months if we can change and re-direct our energies and focus more on our real issues.

 

[AgNoStiC MuSliM]

Another point mentioned in the statement is that US assistance meant for the military be diverted towards economic aid “which can be used for reducing the burden on the common man”. This rejection of American assistance by the army is based on the following numbers which must come as a surprise to all in Pakistan. Instead of the $13-15 billion in military aid, the civilian government got only $8.6 billion, out of which only $1.4 billion were given to the army over the last decade! The world has been led to believe, however, that the Musharraf government received $10 billion as civilian aid, which it heavily diverted to the army. Releasing these figures would suggest that the army wants to dispel the notion that it is the biggest beneficiary of US aid. That said, it should be understood that the issue shouldn’t be that of the Pakistani military having a direct relationship with the US military but rather that it work with the Pentagon along the parameters set for it by parliament and the elected government of the day.

Reading the military

The US establishment is quite good at manipulating the media and pushing out propaganda to push its Foreign policy agenda.

 

[Xeric]

Press Releases 2010

U.S. Continues Coalition Support Fund Reimbursements

May 26, 2010

Islamabad - The U.S. transferred $288 million to the Government of Pakistan today to reimburse Pakistan for some of the costs incurred while conducting counterinsurgency operations against violent extremists in 2009. This is in addition to the more than $1.2 billion in reimbursements already transferred to Pakistan this year by the U.S. government under the Coalition Support Fund (CSF).

The Coalition Support Fund was established by the United States in 2001 to support 27 nations, including Pakistan, for some of the costs they incur in the fight against extremist violence. Since 2001, the U.S. has reimbursed Pakistan $7.4 billion for these costs. The last CSF reimbursements were delivered to Pakistan earlier this month and included $656 million for validated CSF claims received from Pakistan for the year 2009.

Since 2001, the United States has provided more than $11 billion to Pakistan in security assistance and CSF reimbursements. During the last three years, specific security assistance provided includes 14 F-16 fighter aircraft, 10 Mi-17 and two Bell 412EP helicopters, 5 fast patrol boats, 115 Howitzer self-propelled field artillery cannons, more than 450 vehicles for Pakistan's Frontier Corps, hundreds of night vision goggles, day/night scopes, radios, and thousands of protective vests and first-aid items for Pakistan's security forces. The U.S. also provided training for more than 370 Pakistani military officers in a wide range of leadership and development programs covering topics such as counterterrorism, intelligence, logistics, medical, flight safety, and military law.

Pakistan getting good money. see above list...This list is till last year only.
U.S. Continues Coalition Support Fund Reimbursements (05/26/2010) - U.S. Embassy Islamabad, Pakistan

Though you are banned and that it has already been cleared the the Army has only received $1.6 B under the head of CSF against the total allocation of $ 8.6 B (not $13 B), but still for others better asimilation i'll quote a reply of mine that i posted elsewhere to the same news by the US Embassy in Pakistan:

The amount that actually is claimed by the US is that it has paid Pakistan US $ 10 Bn, but the Army has received $ 1.6 Bn only, that's to say the amount specifically given to the Army alone. Here may be you own link would help:

'Since 2001, the United States has provided more than $11 billion to Pakistan (not the Army alone) in security assistance (this 11 Bn includes the other assistance whatever that was in addition to the CSF, which ofcourse was not part of the $ 1.6 Bn that i have mentioned) and CSF reimbursements. During the last three years, specific security assistance provided includes 14 F-16 fighter (Our Army doesnt fly F-16s) aircraft, 10 Mi-17 and two Bell 412EP helicopters, 5 fast patrol boats (nor does it boat), 115 Howitzer self-propelled field artillery cannons (these were NEVER part of the CSF, these are the Paladin SP Guns that were contracted on parallel deal, which were not related to the WoT) , more than 450 vehicles for Pakistan's Frontier Corps (and FC is NOT part of the Army), hundreds of night vision goggles, day/night scopes, radios, and thousands of protective vests and first-aid items for Pakistan's security forces (SF ofcourse includes everybody - Army, Navy, PAF, FC, Paramilitary Firces et al).'

As for the clarification of the distribution of CSF, one can read the Agno's post # 113

 

[Dance]

ISLAMABAD: Around $10 billion of US financial support provided over the past 10 years is missing in Pakistani official calculations.

According to the US Congressional Research Service, $18.76 billion was disbursed to Pakistan for losses incurred in the war against terrorism, but Pakistani officials claim to have received only $8.76 billion, including the military`s share of $1.63 billion.

The records in Islamabad show that the country has filed claims of only $13.3 billion, speakers at a discussion on `The US assistance to Pakistan: A critical appraisal` held on Friday at the South Asian Strategic Stability Institute (Sassi) said.

They said there was a discrepancy of about $6 billion in claims by both governments because the US reimbursed to Pakistan amounts that had not been claimed.

“This money cannot be accounted for and perhaps the US can best explain where it was spent when Pakistan never asked for it,” the institute`s Director General Dr Maria Sultan said.

The brief prepared against the background of the recent suspension of $800 million US military aid to Pakistan was based on comparative analysis of US congressional reports and Defence authorisation bills and Pakistani economic surveys and annual reports.

Sassi Research Fellow Majid Mehmood said US assistance covered both military and civil areas.

The military assistance comprises the Coalition Support Fund (CSF), Foreign Military Financing (FMF), Pakistan Counter-Insurgency Capability Fund (PCCF) and direct funding.

Mr Mehmood said that while the US claimed to have given $12.5 billion, Pakistan`s military had received only $1.63 billion from the CSF and hardware worth $1 billion. He said the FMF helped to buy obsolete US defence equipment and $3.7 billion would be spent for the purpose.

In the civilian sector, the country did not receive more than a few million of the $750 million and $49 million set aside under International Migration and Refugee Assistance and the Fata development plan.

He said $179 million had been disbursed under the Kerry Lugar Bill in 2010 against the US claim of $186 million.

Dr Sultan said that under the bill the country would receive $750 million in the first instalment and $750 million after the presentation of a report by the US representative for Afghanistan-Pakistan.

“According to the text of the KLB, $200 million is administrative charges and most of the aid will go to NGOs or US-based contractors. The actual amount disbursed will be less than $500 million per year — approximately $2.7 per Pakistani.”

Of the $1.28 trillion US expense in the war against terrorism, Pakistan has received $8.76 billion and will receive $1.5 billion per year under the KLB, “out which only five per cent per year is disbursed”, she said.

The estimated loss suffered by Pakistan in the war is about $68 billion.

$10bn of US financial support unaccounted for | Business | DAWN.COM

 

[lem34]

We know already that americans are liars and fraudsters and we should expect this from america.

 

[AgNoStiC MuSliM]

ISLAMABAD: Around $10 billion of US financial support provided over the past 10 years is missing in Pakistani official calculations.

According to the US Congressional Research Service, $18.76 billion was disbursed to Pakistan for losses incurred in the war against terrorism, but Pakistani officials claim to have received only $8.76 billion, including the military`s share of $1.63 billion.

The records in Islamabad show that the country has filed claims of only $13.3 billion, speakers at a discussion on `The US assistance to Pakistan: A critical appraisal` held on Friday at the South Asian Strategic Stability Institute (Sassi) said.

They said there was a discrepancy of about $6 billion in claims by both governments because the US reimbursed to Pakistan amounts that had not been claimed.

“This money cannot be accounted for and perhaps the US can best explain where it was spent when Pakistan never asked for it,” the institute`s Director General Dr Maria Sultan said.

The brief prepared against the background of the recent suspension of $800 million US military aid to Pakistan was based on comparative analysis of US congressional reports and Defence authorisation bills and Pakistani economic surveys and annual reports.

Sassi Research Fellow Majid Mehmood said US assistance covered both military and civil areas.

The military assistance comprises the Coalition Support Fund (CSF), Foreign Military Financing (FMF), Pakistan Counter-Insurgency Capability Fund (PCCF) and direct funding.

Mr Mehmood said that while the US claimed to have given $12.5 billion, Pakistan`s military had received only $1.63 billion from the CSF and hardware worth $1 billion. He said the FMF helped to buy obsolete US defence equipment and $3.7 billion would be spent for the purpose.

In the civilian sector, the country did not receive more than a few million of the $750 million and $49 million set aside under International Migration and Refugee Assistance and the Fata development plan.

He said $179 million had been disbursed under the Kerry Lugar Bill in 2010 against the US claim of $186 million.

Dr Sultan said that under the bill the country would receive $750 million in the first instalment and $750 million after the presentation of a report by the US representative for Afghanistan-Pakistan.

“According to the text of the KLB, $200 million is administrative charges and most of the aid will go to NGOs or US-based contractors. The actual amount disbursed will be less than $500 million per year — approximately $2.7 per Pakistani.”

Of the $1.28 trillion US expense in the war against terrorism, Pakistan has received $8.76 billion and will receive $1.5 billion per year under the KLB, “out which only five per cent per year is disbursed”, she said.

The estimated loss suffered by Pakistan in the war is about $68 billion.

$10bn of US financial support unaccounted for | Business | DAWN.COM

Well this is quite interesting - the PA and various other commentators (some of whom have been documented on this thread) have been arguing much the same for a while now, that actual US 'aid' received by Pakistan is far lower than the US claims to have disbursed.

Some of the US media claims are obviously disingenuous - they tend to simply add in the 'pledged' KLL funds and military aid annually, instead of looking at how much of the 'pledged funds' were actually disbursed. See this next article for example in the next post:

 

[AgNoStiC MuSliM]

Mystery of the missing $6b of US aid to Pakistan​

Pak received only $179.5m from KLB in 2010​

Classified list of people receiving $100,000 disclosed

Dr Jassim Taqui

Islamabad—According to the US narrative, the United States has provided Pakistan a total of $ 18.7 billion in assistance. $12.8 billion went to the military while $ 6.03 billion went to the civilian side. However, Pakistan narrative showed that $ 13.3 billion was invoiced during the last 10 years out of which approximately $11 billion has been accepted by US for reimbursed. Hence over $ 6 billion should have been reimbursed in excess to Pakistani claim even as the amount was not claimed by Pakistan, maintained Majid Mahmood of SASSI ( South Asia Strategic Stability Institute) in a breathtaking presentation to a select media group with Dr. Maria Sultan, Director General of SASSY in the chair.

Majid Mahmood relied on official figures of the US Congress and statistics of Economic Survey of Pakistan and ISPR figures documented during the last 10 years all of which are public information and are available on the internet. The compilation of data and mathematical calculation seem impeccable according to the presentation. No explanation could be ascertained as to where these $ 6 billion has been placed and why such huge amount was disbursed even as Pakistan has never claimed. Ostensibly, even American auditors could not find out such discrepancy, which raises serious questions on the US transparency procedures of dispersing funds.

More surprises are to come. The annual losses of Pakistan due to fighting terror have risen in an exponential way. As its stands by the end of the year 2010 the losses were around $ 17 billion while total amount of aid Pakistan received in 2010 was only $ 179.5 million from Kerry Lugar Bill (KBB) out of a total of $1.5 billion ( US statistics, however put the total aid in 2010 to $ 186 million).

Out of total assistance of $ 12.522 billion aid in 10 years, Pakistan has received only $ 2.478 billion at an average of $ 247.8 per annum. $1.455 billion came from Coalition Support Funds (CSF) and $ 1.023 billion from direct funding. US authorities have also withheld Pakistan claims worth $4 billion from CSF.

A detailed study of KLB shows some unbelievable figures. According to the US congressional report, 50 percent of KLB to Pakistan are deducted as “administrative cost.” Corruption was also unveiled in the distributing money.

Finance Minister Abdul Hafeez Sheikh during a key note address at a Woodrow Wilson Center, US in April said, “It is largely a myth that Pakistan is a beneficiary of tens of billions of dollars. The truth is that in Kerry-Luger-Berman arrangement this year (2010) we have not even received $ 300 million.”

Details of financial breakdown of KLB shows that $ 750 millions (half of the annual assistant to Pakistan) will be given after the report presented by the Representative of AFPak. Classified lists of people to be given more than $ 100,000 were attached to KLB as annexure. Hence, nobody knows who are these privileged people and why would each receive such a huge money.

The administrative cost is huge. It is estimated at $200 million while 40 percent of aid will go to NGOs that are selected by the Americans htemselves. Pakistan has no clue about the names or even nature of the work of these NGOs.

More ominously, the US Cooperative Threat Reduction (CTR) programme has been extended to include Pakistan according to US Budgetary document. CTR was used to denuclearize former Soviet Union breakaway republics. About $ 30 billion was sanctioned to CTR, Pakistan Chapter. It will be partially financed from KLB and the rest from US treasury. This bill also states if for some reasons, funds could not be allocated to CTR, natural resources of Pakistan should be sold to obtain the required money.

KLB sought to convert a conventional army into a US counter-insurgency division. It provides for illegal contractors and US Special Forces for covert operations in Afghanistan and Pakistan, It sought placing US intelligence operators in corps headquarters of Pakistan Army. It stipulated dependence on obsolete US military hardware instead of developing indigenous capabilities.

Majid Mahmood and his team under the leadership and guidance of Dr. Maria Sultan gave a stunning presentation using Power Point. It was a display full of “power” of figures, statistics and “points” of contentions. Director General of SASSI Dr. Maria Sultan immensely supplemented the presentation by explanation that is more elaborate and later she translated extempore into Urdu the entire presentation.

Pak received only $179.5m from KLB in 2010

 

[AgNoStiC MuSliM]

Hoe many 'liberal commentators' bashing the ISI/PA are in that 'classified list' of people receiving $100,000 payments I wonder ...

 

[fatman17]

Islamabad Pakistan provided only $8.6b against US claim of $18.7b aid

Myra Imran
Saturday, July 16, 2011


Huge gaps between the actual amount of military and civilian aid delivered by US government to Pakistan during past 10 years and the amount claimed by the US government were identified in the ‘SASSI Brief’ released by South Asian Strategic Stability Institute (SASSI) here on Friday.

The comparative analysis done by the SASSI team indicates that Pakistan has been provided with only $8.64 billion against the claims made by the US government in its Congressional Research Service reports which shows the US has reimbursed $18.76 billion to Pakistan over the last 10 years for the losses incurred in the war against terror. Out of the total amount of $8.64 billion provided to Pakistan, $1.63 billion went to the military whereas the government received $2.7 billion.

Solving the complicated puzzle of figures often mentioned to portray that Pakistan is taking a huge amount of money from United States in the form of aid, the ‘SASSI Brief’ explained another interesting dimension that the US and Pakistani claims had a discrepancy of approximately $6 billion more than what was claimed by Pakistan.

“How can US provide more than the Pakistani claim? This money cannot be accounted and perhaps the US can best explain where was this money spent when Pakistan never asked for it,” Director General SASSI Dr Maria Sultan raised a genuine question.

Maria said that Pakistan claimed $13.30 billion from the US government over the last 10 years where as the Congress reports claim that it has provided $18.7 billion to Pakistan. “Out of the total claim of $13.30 billion, approximately $11 billion has been accepted by the United States for reimbursement and only $8.64 billion has been reimbursed.

The United States claim that it has provided $18.7 billion to Pakistan in last 10 years. Among that, $412.8 billion went to military side while $6.03 billion was given in the form of civilian aid. The US maintains that according to Kerry-Lugar Bill, $7.5 billion will be given to Pakistan in a yearly $1.5 billion breakdown. Thus, according to them, Pakistan is not showing the commitment the US government expects.

The ‘SASSI Brief’ was made in the background of the recent suspension of US military aid to Pakistan, worth $800 million. The issue has generated a debate regarding utility of aid to Pakistan economy, its relevance to perceived economic uplift, its objectives, the real worth of US money being transferred to Pakistan and prospects of carving an independent way forward towards economic prosperity and an independent foreign policy.

The study was based on drawing comparative analysis of the US Congressional reports, Defense Authorization bills, the Pakistani economic surveys and year reports.

The brief concluded that in contrast to the US claims of providing Pakistan $12.5 billion military aid, Pakistan’s military received only $1.63 billion from the Coalition Support Funds and $1 billion of worth of hardware in the last 10 years. “In reference to the Foreign Military Financing (FMF), the fund which helps to buy obsolete US defence articles, $3.7 billion will be spent while money from Pakistan’s own financial resources is $2.6 billion.

Maria said that according to Pakistani sources, only $179 million have been disbursed from KLB by the end of 2010 against the US claims of $186 million for financial year 2010. “While discussing the US aid, let us not forget that according to US Congressional reports, constant factors in US aid include 50 per cent administrative cost and corruption in distributing money,” she pointed out.

The DG SASSI discussed the financial breakdown of KLB Act 2009. She said Pakistan will receive $750 million in first instalment and further $750 million will be given after the report presented by the Representative to AfPak.

She said that micro projects will be funded first and the money given the first section of the bill for socio-economic and political uplift will be placed in classified annex. “Which means that names of the people who are given more than $100,000 will be listed and placed in the classified annex or would not be disclosed,” she said.

Under KLB, she said that out of the total amount of an instalment of $750 million, $200 million are administrative charges and 40 per cent of the aid will go to NGOs. “Which means $500 is the remaining amount that is 0.002 per cent of the GDP and 0.4 per cent of the revenue collected by the government,” she said while stressing that all these figures should to be kept in mind before commenting that Pakistan can not survive without US aid.

Maria Sultan said that the latest defence authorisation bill 2012, under section 1214, titled ‘Extension and Modification of Pakistan Counterinsurgency Fund’ is seeing a new set of conditionalities in which they want Pakistan to fulfil the conditions of the KLB.

“The bill clearly states that if a report or a grand strategy regarding the utilization of funds is not submitted to the Congress then United States can put limitations on the funds. It presently will provide 25 per cent of the funds only and putting a condition to submit the report as a pre-requisite to get the remaining 75 per cent of the counterinsurgency funds.”

In her concluding remarks she discussed the implications of the US assistance for Pakistan’s national security interests. She said that current plans include expanding the Cooperative Threat Reduction (CTR) efforts into Pakistan, Afghanistan and other countries. “The US government has also demanded to place US intelligence operators in corps head quarters.”

Maria highlighted that out of $1.28 trillion expense of the US in the war against terrorism, Pakistan has received only 8.76 billion dollars over the last 10 years and will receive only 1.5 billion dollars per year in the KLB, out of which only five per cent per year is ever dispersed.

“Whereas the economic losses of Pakistan due to war against terror have increased from $2.72 billion in 2001 to $17 billion in 2011,” she pointed out and concluded that continuation of war on terror cannot be sustained any further. She stressed for developing indigenous capabilities instead of increasing dependence on foreign military hardware.

Research Fellow at SASSI Majid Mehmood discussed the US military and civilian aid to Pakistan in last 10 years. He said there are two areas of US assistance to Pakistan. One is the military assistance programme and second is the civil assistance programme.

He said that the sources of military assistance programme constitutes, the Coalition Support Fund (CSF), Foreign Military Financing (FMF), Pakistan’s Counter Insurgency Capability Funds (PCCF) and Direct Funding. Majid also discussed the sources of civilian aid which included the Economic Support Funds, Migration and Refugee Assistance (MRA), FATA Development Plan, the KLB Act 2009 and Friends of Democratic Pakistan forum (FODP).

In his presentation, he said that there is a need of paradigm shift in Pakistan’s policy in order to forge an independent road toward economic prosperity and political independence. He said establishing a foreign policy exclusive of any US alignment will form the basis of independent decisions in a new political order.