Shh! Pakistan Bills Washington $600 Million for Latest ‘Coalition Support Fund’ Payment

Now that ties between Pakistan and US are fast thawing, Islamabad has sent the first Coalition Support Fund (CSF) bills to Washington since the US Navy SEALs raid to hunt down Osama bin Laden in May  last year.

The Joint Staff headquarters has sent fresh CSF claims to Pentagon, a senior official from the finance ministry said. Neither the ministry nor the US Embassy in Pakistan disclosed the exact amount of the claims, but it is said to be between $500 and $600 million.

During the earlier stalemate, both the military and civilian leadership had maintained national pride and sovereignty were more important than financial gains. Pakistan had decided not to send any receipts for expenditures incurred from the May 1, 2011 US raid which killed Osama Bin Laden to the air strike that claimed the lives of over 24 Pakistani soldiers at the Salala check post on November 24.

However, the first bill sent to Pentagon since the raid in Abbottabad on May 1 last year is, interestingly, for expenditures incurred during the same period.

The US Embassy in Islamabad refused to comment on the recent development. “For information on new claims filed by the Pakistani government, you will have to refer to them,” said the embassy’s spokesman Mark Stroh.

Replying to another question, Stroh said Obama’s administration had notified the Congress regarding reimbursement of existing claims worth $1.1 billion. According to standard procedure, the Congress has 15 days from the day of the notification to object to the claims. If no objections are raised, the administration is allowed to complete the transaction.

The military’s media wing Inter Services Public Relations (ISPR) also shied away from deliberating on the issue. A senior official requesting anonymity said the finance ministry overlooks reimbursement claims and subsequently disburses a quota to the military. Under the existing formula, the military gets 60% of the disbursed amount while the rest is used for budget financing.

The government is already facing criticism for forgoing $1.3 billion under CSF claims and agreeing to receive only $1.1 billion.

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U.S. Financial aid to Pakistan since 9/11:

Between 2002-2010, Pakistan received approximately $18 billion in military and economic aid from the United States. In February 2010, the Obama administration requested an additional $3 billion in aid, for a total of $20.7 billion.

Western officials have claimed nearly 70% (roughly $3.4 billion) of the aid given to the military has been misspent in 2002-2007 and used to cover the civilian deficit. However U.S-Pakistani relationship has been a transactional based and U.S military aid to Pakistan and aid conditions has been shrouded in secrecy for several years until recently. Furthermore a significant proportion of U.S. economic aid for Pakistan has ended up in back in the U.S., as funds are channeled through large U.S. contractors. A U.S. lawmaker also said majority of U.S. economic aid has not left the U.S. as it spent on consulting fees and overhead cost.

Military and economic aid