US billed $300m for logistics

Published February 19, 2002

KARACHI, Feb 18: Pakistan has already received $80 million against a total $300 million the US administration was billed for the logistic support extended to the American forces in Pakistan during the past five months.

“The remaining balance of $220 million is due in the next few weeks,” a well-placed government source disclosed to Dawn on Monday.

Federal Finance Minister Shaukat Aziz, at his news briefing on Saturday in Islamabad, had disclosed that Pakistan was charging roughly $50 to $60 million a month from the US against provision of logistics support to its forces on Pakistan soil.

He had said that this billing was being done under Acquisition and Cross Services Agreement (ACSA).

Well-placed sources say the US president is competent to make payments under ACSA without going to the Congress hence the quick release of the amount after the two sides jointly worked out the five-month bill.

The sources say that Pakistan took its cue from the US government: it had charged Saudi Arabia heavily for the “Operation Desert Storm”. Pakistan’s case of charging the US administration was inversely identical to that of deployment of US forces in Saudi Arabia.

“It was a real hard drill to figure out the real expenses,” the source said, adding that the Chief Finance Officer of the US Defence department visited Islamabad a few weeks ago to discuss this issue in detail.

“We now expect a regular monthly inflow of $50 to $60 million under ACSA,” the source said, estimating annual receipt of $600 to $700 million.

A real significant achievement of President Pervez Musharraf’s recent visit to Washington is said to be the revival of a joint working consultative group on defence.

“An institutional arrangement has been put in place for frequent interaction of the defence establishments of the two countries,” the source said. “It means a lot,” the source noted,

“when you analyse President Musharraf’s visit to the US and re-establishment of a joint working consultative group in the context of the prevailing tensions on Pakistan’s eastern borders.”

A de-escalation on international borders, resumption of dialogue between Pakistan and India on outstanding issues, including Kashmir, a quickest possible return to normalcy in South Asia and an economic rebuilding and reconstruction of Afghanistan as a normal functioning state remain the dominating concerns of all the US policy-makers.

The sources say that Islamabad too shares all such concerns, hence the development of a close working relationship between Pakistan and the US.

Setting up of an institutional arrangement for mutual discussion on defence issues between Pakistan and the US has apparently rekindled the hope of F-16s delivery issue being reopened. “It is not a closed chapter at all,” the source said.

Government sources are confident that Pakistan Air Force will get due attention from the Pentagon. There are expectations of receiving C-130 aircraft, helicopters and spares and equipment badly needed by the air force. The emerging situation has not only brought Pakistan and US closer in defence matters but has also led to the setting up of joint working consultative groups to discuss frequently the economic issues, law enforcement matters and narcotics.

The US Attorney General Ashcroft has invited Pakistan’s interior minister to discuss counter-terrorism issues.

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