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US Senate passes $800m Pakistan fund

Updated Jun 16, 2016 01:57pm

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WASHINGTON: The US Senate has passed its draft of the National Defence Authorisation Bill, including a provision to set up a new fund to reimburse Pakistan for its efforts in the war against terrorism.

The Senate version authorises $800 million under a provision called the `Pakistan Security Enhancement Authorisation’.

It also fences $300m behind a similar Haqqani network provision that has existed in the annual defence authorisation acts since the fiscal year 2015.

The proposal for Pakistan was passed as originally initiated.

None of the over 400 amendments considered by the Senate targeted this outlay for Pakistan.

The proposed reimbursement mechanism for Pakistan replaces the Coalition Support Fund (CSF), which was used to reimburse both Afghanistan and Pakistan for their efforts to combat terrorism.

Pakistan has received a total of $3.1 billion since 2013 under the CSF. But this fund expires in the current financial year, ending in October.

The US administration is allowing the CSF to expire because it was linked with a specific US mission in Afghanistan, which has formally ended.

While adopting the new provision, the Senate Armed Services Committee used the CSF model to restructure security support for Pakistan. But it focuses specifically on Pakistan’s own security needs instead of tying it to a broader coalition.

In doing so, the new provision delinks Pakistan from Afghanistan, by recognising it as a country with its own strategic value for US interests.

In a report filed with the draft Defence Bill, the US Senate Armed Services Committee called Pakistan "a long-standing strategic partner" and stressed the need to continue a strong relationship with the country.

The committee also noted that since 9/11 Pakistan has been a vital partner of the US in efforts to combat terrorism in South Asia.

Both houses of the Congress have passed their versions of the Defence Bill. A conference committee of both houses will now be formed to develop a consensus draft.

The consensus draft will be passed from both houses of the Congress again before it is sent to the president for signature.

The procedure can be completed by July, although past bills have been passed as late as November.

Senator John McCain, who chairs the Senate Armed Services Committee, had introduced the bill late last month. The committee sent it to the Senate with its approval.

Besides, the Haqqani restriction, the bill requires Pakistan to keep open ground communication lines to Afghanistan for receiving reimbursements from this fund.

Another bill, passed by the House of Representatives last week, linked $450m from a total of $900m proposed for Pakistan to take action against the Haqqani network.

The committee expressed the concern that “continued reliance on Coalition Support Fund for the provision of security assistance to Pakistan could negatively impact US support of Pakistani operations to combat terrorism”.

Published in Dawn, June 16th, 2016

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Comments (77) Closed



Rohit Jun 16, 2016 07:13am

Good...more money for Pakistan....

Adnan 2 Jun 16, 2016 07:28am

US will never ignore Pakistan. Pakistan is very important country in South Asia. US need pakistan more than pakistan need them. Long Live Pakistan.

Zak Jun 16, 2016 07:28am

Finally some common sense prevailed, US needs Pakistan and all this tough stance will not yield any results.

Adnan Jun 16, 2016 07:58am

Clearly US of A is playing with Pakistan!

hitman Jun 16, 2016 08:06am

all the best

Pakistani Jun 16, 2016 08:07am

We need to get rid of this, it brings shame and misery to Pakistan.

Bala Jun 16, 2016 08:17am

India is investing more than $800m in Iran n Afghanistan. Look for investment instead of any sort of funding!

moeaze Jun 16, 2016 08:20am

Pakistan should only accept foreign aid for human development. Pakistan should have the confidence as a nuclear power to protect itself from any outside attacks. Development on internal capabilities should be given priority.

Angry Pitbull Jun 16, 2016 08:28am

@Zak

US needs Pakistan, I dont think so actually Pakistan needs USA ?

Jehanzeb Jun 16, 2016 08:47am

We should stay away from this and stand on our feet.

Common Sense Jun 16, 2016 09:00am

Pakistan should stand tall and not make an exception for any country.

Vvv Jun 16, 2016 09:07am

@Jehanzeb good point even in family relation no body like those relatives and ignore them who always demand money .

HissarExpress Jun 16, 2016 09:06am

When other countries are making their economies strong, we are celebrating a fund from USA

Unshackle Pakistan Jun 16, 2016 09:09am

@moeaze

This is neither aid nor assistance. Its payment - and that too only a part of it - for expenses incurred by Pakistan in conducting operations against the terrorists, at US bidding.

The Americans have a way of coming up with acronyms, misleading the local population into believing that the money being offered is for free. The most famous acronym for all times being USAID - US Agency for International Development.

The Americans themselves have been saying, and continue to say so to this day, that there is no such thing as a free lunch.

A shah Jun 16, 2016 10:47am

Now let's see if Pakistan has any honour dignity or self respect and not accept this money.

Jaan-Bhittani Jun 16, 2016 10:47am

it means that The USA desperately need Pakistan.

Kranti Jun 16, 2016 11:00am

After Trump nothing will come

Sunil Jun 16, 2016 11:01am

"Pakistan has received a total of $3.1 billion since 2013 under the CSF" where did it go, is there clarity.

Rehan Jun 16, 2016 11:11am

That's peanuts. America needs to "do more" to prove it's sincerity instead of offering such paltry amount.

Waseem Sarwar Jun 16, 2016 11:14am

@Bala , China is investing more than 40B $ in Pakistan so what's your point? US never invests in Pakistan and only loans and grants are given to us so why push for investment from a country which never has invested.

Motherland Jun 16, 2016 11:16am

Now see hue and cry in hindustan!!!

sam Jun 16, 2016 11:31am

@Rohit India receive $ 65.1 billion from 1946 to 2012. (Times of India report).

Global Peace Jun 16, 2016 11:34am

Good News .. please use this money for Education rather than useless arms race

Zak Jun 16, 2016 11:38am

@moeaze this is reimbursement for overspill of US war in Afghanistan.

Inside_Job Jun 16, 2016 11:40am

@Zak Its an old stick and carrot policy. Most possible reasons for this fund are - 1) US wants Pakistan to not to create any trouble for Kabul regime. 2) To tone down its opposition against India's bid for NSG. 3) Not to forge strong strategic partnership with Russia and China. Further funds are based on conditions which are again to be decided by US Senate.

Zak Jun 16, 2016 11:41am

@Angry Pitbull really, than go to Afghanistan via Iran or Central Asia and ask them to manufacture your armaments and supply you. We have no problem.

rao abid Jun 16, 2016 11:50am

pakistan should get stability as soon as possible because world is making progress while we are making castle in the air. we are not doing something from 25 year .

True Blue Indian Jun 16, 2016 11:50am

Now Lets buy some more weapons eh ?

Asif Mir Jun 16, 2016 11:56am

"Besides, the Haqqani restriction, the bill requires Pakistan to keep open ground communication lines to Afghanistan for receiving reimbursements from this fund."

This is not free money. This are potential payments for contract work.

Being Indian Jun 16, 2016 12:01pm

@Motherland dude we dont feel jealous or anything .. so no question of cries in hindustan. we are independent nation & we do not take aid from any one.

also this 800mn is USA's Reimbursement for constant drone strikes in Pakistan. So be happy now.

Asad Jun 16, 2016 12:02pm

Pakistan has importance around world, bu unfortunately so called government and leaders except Imran Khan are using this importance for their own benefits. When people of this country will woke up.

ASif khan Jun 16, 2016 12:03pm

Dont go after the aid ,Be a self sustaining and independent country with rising economy is important ,There are no free lunches in this world ,If US gives us money they will dictate terms in our policy making simple

Irongloves Jun 16, 2016 12:13pm

@Angry Pitbull , no need to snap at Zak. He fantasizes in a parallel universe.

Alex Jun 16, 2016 12:26pm

When will our country move away from the charities of the US and others?

Rashid Jun 16, 2016 12:33pm

@Bala Dead investment in the end.

Timeto stopthis Jun 16, 2016 12:36pm

So where has your sovereignty gone now?

DifferentPerspective Jun 16, 2016 12:37pm

Pakistan should decline these funds and any such financial support. This is shameful. US cannot offer anything sincere and we absolutely do not need any charity.

Shahid Jun 16, 2016 12:43pm

Only if we can exploit our own potential, this 800 or 300 millions is peanuts for a resourceful county of 200 million industrious people. Our leaders, instead of developing the potential of Pakistan, are busy in offshore investments and raising Foreign Exchange reserves on the basis of IMF loaned money

Asif Kashmiri Jun 16, 2016 12:46pm

oh for God sake - get out of this mess.

Tariq Rashid Jun 16, 2016 12:50pm

$800m so effortlessly passed one wonders what really changed on grounds to get this passage so smoothly - no lobbying to block this huge amount !!

anon Jun 16, 2016 12:53pm

@moeaze Nobody is going to attack Pakistan.

anon Jun 16, 2016 12:55pm

@Motherland India has always said - a safe and stable Pakistan is good for India.

anon Jun 16, 2016 12:56pm

@sam It was received by foreign NGOs.

Akram Jun 16, 2016 12:57pm

Sadly we never learn.

anon Jun 16, 2016 12:59pm

@ASif khan Such honest advice offends Pakistanis.

Syed Jun 16, 2016 01:01pm

Kindly reject this fund, Pakistan is better off from these funds.

sbk Jun 16, 2016 01:08pm

If you can eliminate all good and bad terrorists from your soil, you can become a great country. Then you need not depend on others for aid, fund and investments. The country will automatically develop with the resources that you have.

hussnain Jun 16, 2016 01:10pm

America always demand"do more"and Pakistan always show interest in CSF,

raghu Jun 16, 2016 01:10pm

@Motherland why india only $800 mil. Indian defence budget is $65bill .....

Khiz Jun 16, 2016 01:11pm

For the uninformed talking about self reliance and shunning aid, please understand one basic thing: this is rreimbursement and NOT assistance. It is rent for the use of our ports, bases, roads, vehicles, personnel, and other resources in order to get equipment and materials to the US forces in the landlocked Afghanistan. Pakistan is an ally of the US, and played a major role to defeat the Taliban there. This is just partial reimbursement for the billions of dollars we spent helping our alliance partners.

Rakesh Jain Jun 16, 2016 01:13pm

@AWASEEM SARWAR.. yes its reality, no other country is ready to invest

Pra aksha Jun 16, 2016 01:21pm

@DifferentPerspective Then how Pakistan will live?

Indian Jun 16, 2016 01:25pm

WOW!! $800 million is not a small amount. Now USA can expect better response from Pakistanis for some times at least.

Vijay, salem Jun 16, 2016 01:46pm

@Pakistani This is what a pride citizens of a country expect from their government but alas see the comments of most of the people . They are immensely happy .

marcus_715129 Jun 16, 2016 01:51pm

Don't take the money, this is the time to sever that upper hand the USA has had over Pakistan. It needs to set its foreign policy straight.

Taimoor Khan Jun 16, 2016 02:16pm

I dont know what is the big deal about this. Its the money America owe to Pakistan for using our facilities to sustain their presence in Afghanistan. Pakistan needs to tell America that there are no "conditions" attached to it. Either you pay the "service charges" or find some other route to sustain yourself inside Pakistan. Would someone fly to the destination without paying airport tax? Pakistan need to itemize its services charges like ports, airspace, motorway usage. There are no free lunches anymore.

Namo Jun 16, 2016 02:28pm

@Zak what ever they have received in reimbursements is there any accountability for it.

Tamil Guru Jun 16, 2016 02:29pm

Pakistan needs to boost its economy immediately and stop depending on foreign aid for its survival.

Most think tanks around the world have been saying that Pakistan needs between 8% to 10% GDP growth to sustain its exploding population. Not much is being done by the government to either improve the economy or control the population.

The writing is on the wall. Pakistan must act now..

Zak Jun 16, 2016 02:50pm

@Inside_Job Point 2 and 3 are not negotiable. Point 1, US is relying on Pakistan to bring peace in Afghanistan. The funds are reimbursement, and have to be paid, its not aid. US knows Pakistan support is a regional power, it cannot do without. US wants to use India for issues towards East of South Asia and Pakistan for issue towards the west of South Asia.

Ranjit Jun 16, 2016 03:03pm

The region need peace. We respect Pakistan, it is a brave country and has to deal with many problem for long years. We need clear all point and no misunderstanding to stay in peace.

zak Jun 16, 2016 03:05pm

@Pra aksha Like India live, by borrowing from outside.

CHANAKYA Jun 16, 2016 03:46pm

Hope it reaches the right place ...

Ali Jun 16, 2016 06:35pm

Pakistan as the front-line state in the global War on Terror, with 60,000 killed and $180 billion economic losses has suffered more than any other country. The US and Pakistan as strategic partners cooperated closely since 9/11. Coalition Support Fund (CSF) reimbursed Pakistan for its war deployment and support to US/NATO effort.

US/NATO combat mission ended in Afghanistan, but the war did "not". Therefore, Pakistan's military role and responsibility have increased. CSF ends in October 2016, to be replaced by country specific Pakistan Security Enhancement Fund (PSEF). This is welcomed by the people of Pakistan, as its vital for regional and world peace.

Saadat Jun 17, 2016 10:42am

USA will for sure have their "Economic Hitmans" setting around you for this and previous fund. These funds have very bad consequences for years to come! when will be understand.

Arun-KS Jun 17, 2016 11:05am

No pride in getting millions in begging. Penny earned on own is of importance.

Pratap Jun 17, 2016 11:39am

Good. Now NS doesn't have to worry about the bills.

N.S Jun 17, 2016 12:25pm

@Arun-KS This is part of the coalition support fund(CSF) reimbursement. This is the money Pakistan is getting as transit fee for all NATO supplies through Karachi port. The logistics, man power, bases and intelligence provides by Pakistan.

BTW Check the US aid India got so far, it was in excess of 61 billion USD, much more than what Pakistan got.

L. H. ZAIDI Jun 17, 2016 12:54pm

@Rohit Peanuts, because of weak and incompetent govt in Islamabad.

ALI Jun 17, 2016 02:18pm

@Bala $800 Million by India to help Iran and Afghanistan while 800 million souls living below poverty line in India itself.

ABDUL MUQTADIR Jun 17, 2016 04:31pm

I am looking forward for the day when Pakistan will stand on its own feet and will stop looking for Foreign Aid. There are Millionaires in Pakistan who are not putting up their own share.

Ahsan Jun 17, 2016 04:35pm

Don't want anymore. thank you USA, wonder when we will be off from the clutches of US stupid funds.

Nasir Jun 17, 2016 04:50pm

imagine if we spent the whole amount on building a state of the art super hospital for the poor !

syed baqar ahsan Jun 17, 2016 08:13pm

USA remains in good or bad mood swings and other thing nobody understand Americans more then Pakistan-USA can avoid anybody in the world but not Pakistan

jam shed Jun 18, 2016 05:49am

@sam Most Indians think alike and say the same thing over and over again, a clear sign of mediocrity.

Faisal Hamid Jun 18, 2016 10:40am

Pakistan has received a total of $3.1 billion since 2013 under the CSF. If all this was for service charges after 9/11 to USA, then where that sum of money had gone since 2013 onwards? It must have invested in some business, and it will get double in 2018, so shall it can benefit the nation in the longer run.

Rohin Jun 18, 2016 06:09pm

@Inside_Job

Well said !!

Reality Jun 19, 2016 01:01am

The last Census in Pakistan was conducted in 1998, only after a delay of seven years. As per 1998 census, population of Pakistan was 130,857,717. Who has been benefited from such deals since 9/11, if not to talk about before?