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CSF release: US delaying tactics putting pressure on economy
ZAFAR BHUTTA
ISLAMABAD (February 13 2010): The United States' delaying tactics in releasing Coalition Support Fund (CSF) is putting immense burden on war-hit economy of Pakistan as Finance Ministry has estimated huge expenditure of Rs 213 billion on war against terrorism for 2009-10, Business Recorder has learnt.
According to revised budget estimates for 2009-10, Finance Ministry has reduced the Public Sector Development Programme (PSDP) 2009-10 to Rs 250 billion to absorb the steep rise in expenditure on account of military operations in Waziristan. The government had also revised upwards the expenditures on defence services from Rs 343 billion to Rs 378 billion due to the on-going military operations.
But US attributes delay in reimbursement of claims under CSF for logistical and military support for counterinsurgency operations to denial of visas by Pakistan to US officials who need to come to Pakistan for completion of paper work mandatory before the reimbursement of claims payable to Pakistan.
Sources told Business Recorder that a meeting was held in Finance Division under the chairmanship of Finance Minister Shaukat Tarin on February 1, 2010. The meeting was informed that war on terror funding for the 2009-10 would go up to Rs 213 billion and would badly hit the development budget of the country.
They said that in the meeting it was decided to ask the Planning Commission to provide details of the development projects for setting priority. It was also decided that the grants to internally displaced persons (IDPs) should be shown as part of the war on terror recurrent grants.
The meeting decided that the Benazir Income Support Programme (BISP) funding should be separated as (i) subsistence and insurance and as part of the recurrent budget grants and (ii) skill development and Waseela-e-Haq initiatives in the development budget grants.
Many other decisions were also taken which are: (i) before the presentation of Budget Strategy Paper (BSP) 2 to the Cabinet, 'Budget Policy Statement' should be tabled before the National Assembly Standing Committee on Finance and Senate Standing Committee on Finance. The process will be as follows;(a) Preparation of BSP 2 should be completed by the end of March 2010 (b) the Annual Plan Co-ordination Committee (APCC) meeting should be called in the first week of April (c) the Budget Policy Statement should be presented in the committees based on the recommendations of the BSP 2 by the second week of April (d) inputs of the Parliamentary Committees should be included in the BSP 2 process and (e) the BSP 2 process should be tabled before the Cabinet by third week of April 2010.
Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]
ZAFAR BHUTTA
ISLAMABAD (February 13 2010): The United States' delaying tactics in releasing Coalition Support Fund (CSF) is putting immense burden on war-hit economy of Pakistan as Finance Ministry has estimated huge expenditure of Rs 213 billion on war against terrorism for 2009-10, Business Recorder has learnt.
According to revised budget estimates for 2009-10, Finance Ministry has reduced the Public Sector Development Programme (PSDP) 2009-10 to Rs 250 billion to absorb the steep rise in expenditure on account of military operations in Waziristan. The government had also revised upwards the expenditures on defence services from Rs 343 billion to Rs 378 billion due to the on-going military operations.
But US attributes delay in reimbursement of claims under CSF for logistical and military support for counterinsurgency operations to denial of visas by Pakistan to US officials who need to come to Pakistan for completion of paper work mandatory before the reimbursement of claims payable to Pakistan.
Sources told Business Recorder that a meeting was held in Finance Division under the chairmanship of Finance Minister Shaukat Tarin on February 1, 2010. The meeting was informed that war on terror funding for the 2009-10 would go up to Rs 213 billion and would badly hit the development budget of the country.
They said that in the meeting it was decided to ask the Planning Commission to provide details of the development projects for setting priority. It was also decided that the grants to internally displaced persons (IDPs) should be shown as part of the war on terror recurrent grants.
The meeting decided that the Benazir Income Support Programme (BISP) funding should be separated as (i) subsistence and insurance and as part of the recurrent budget grants and (ii) skill development and Waseela-e-Haq initiatives in the development budget grants.
Many other decisions were also taken which are: (i) before the presentation of Budget Strategy Paper (BSP) 2 to the Cabinet, 'Budget Policy Statement' should be tabled before the National Assembly Standing Committee on Finance and Senate Standing Committee on Finance. The process will be as follows;(a) Preparation of BSP 2 should be completed by the end of March 2010 (b) the Annual Plan Co-ordination Committee (APCC) meeting should be called in the first week of April (c) the Budget Policy Statement should be presented in the committees based on the recommendations of the BSP 2 by the second week of April (d) inputs of the Parliamentary Committees should be included in the BSP 2 process and (e) the BSP 2 process should be tabled before the Cabinet by third week of April 2010.
Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]
