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$10bn of US financial support unaccounted for

July 16, 2011

The records in Islamabad show that the country has filed claims of only $13.3 billion for the war against terrorism. – File Photo by AP

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.