Pakistan got $1.1bn for fighting terrorism

[Neo]

Pakistan got $1.1bn for fighting terrorism

By Khaleeq Kiani

ISLAMABAD, Nov 14: Pakistan received about $1.1 billion last year from the United States for the logistical support it provided for the counter-terrorism operations, including its own military operation mainly in Waziristan and other tribal areas along the Durand line.

According to a recent report of the Asian Development Bank, Pakistan received about $1.1 billion from the United States for logistical support.

And according to a report of the Congressional Research Services (CRS), updated on October 26, the United States disbursed about $3.7 billion to Pakistan for counter-terrorism operations during January 2002 to August 2005. Another $900 million would be provided to Pakistan during the current year and $739 million next year.

The next year’s amount is likely to be reduced by $150 million to about $590 million, owing to a reduction sought by the US House Appropriations Committee ostensibly for domestic budgetary reasons, not related to Pakistan.

The US Senate Appropriations committee, said the report, called for redirecting of the requested ($739 million) US economic aid to Pakistan towards development and democracy promotion programme. More so because the Democrats have gained ground in both houses and are critical of Bush policies.

Pakistan’s official budget documents give no details of these receipts.

The report said Pakistan was provided with $300 million in 2005 and would get a similar amount during the current year under the foreign military financing alone. A total of more than $15 billion in US economic and military assistance went to Pakistan from 1947 through 2005.

The Bush administration offered a $3 billion five-year aid package to Pakistan for becoming a frontline ally. Annual instalments of $600 million each split evenly between military and economic aid, began in 2005.

In his autobiography, President Musharraf wrote that the CIA had paid millions of dollars to Pakistan government as bounty money for capturing Al Qaeda operators from tribal areas bordering Afghanistan. About 359 of them were handed over to the United States. The whole affair was dropped from the Urdu version of President Musharraf’s book following Bush administration’s clarifications that the US law did not permit payment of bounty money to governments for capturing or providing information about person with head money on them.

The updated version of the report on Pakistan finalised by the CRS on October 26, 2006 said: "Rewards for participation in the post-September 2001 anti-terror coalition somewhat eased Pakistan's severe national debt situation, with many countries, including the United States, boosting bilateral assistance efforts and large amounts of external aid flowing into the country."

This challenges a government claim in Pakistan that the debt reduction was secured through home-grown economic policies and rescheduling of debt with the Paris Club ahead of 9/11.

It said the national economy of the poor country gathered significant momentum helped in large part by the government’s pro-growth policies and by post-2001 infusions of foreign aid.

http://www.dawn.com/2006/11/15/top2.htm

[sigatoka]

This U.S. aid is really not a lot, Egypt received three times as much for doing nothing. U.S. aid also hurts Pakistan's exports because it causes exchange rate appreciation which makes Paksitan's exports uncompetitive.

People might howl how free money can be bad? Tell me which African country on massive aid has ever become anything?

For e.g. Pakistan exports textiles (production in this is subject to learning by doing, the more textiles Paksitan produces the better it becomes) suddenly U.S. injects a lot of aid into Pakistan, Pakistan currency appreciates, Pakistan textiles become uncompetitive. This wouldnt be a big deal but it is because China doenst receive any Aid, its production in textiles is rapidly improving and when Pakistan one day stops receiving Aid not only does it lose this revenue but its textile exports is so far behind China's that it will never regain ground. It will be forced back to export agriculture.

So is all Aid bad? Not quite, aid must be given in kind (that is products not cash) which wouldnt cause currency appreciation given that Pakistan does not export that product or even produce it as well. For e.g. Pakistan's car industry is still developing and if U.S. donates 10,000 vehicles you might think this is great but it will industry the car industry from which it wont ever be able to recover.

Aid truely is a double edged sword, Pakistan would do better by refusing all aid than receiving the aid it does at the moment or if it received aid in the form of donated stealth bombers (because thats the only thing i can think of that Pakistan's economy doesnt produce).

[Srirangan]

Yea, it doesn't do Pakistan much good, but surely the current regime and its higher ups filling up their Swiss a/c's .. on the pay roll.

[malaymishra123]

and buying new military equipment!

[Neo]

Originally Posted by Srirangan

Yea, it doesn't do Pakistan much good, but surely the current regime and its higher ups filling up their Swiss a/c's .. on the pay roll.

Don't claim it unless you have proof.
Current regime is least corrupt.

[Lahori paa jee]

Pakistan is paying a heavy price for siding with US. This was not our war and by working on America's behest we are alienating our own people. We have done it before and seems no lessons were learnt.

IMO the amount of money we are getting from US is peanuts

[WebMaster]

Even peanuts are good when there is nothing to eat.

Its not about getting money from the United States, its about getting support Internationally, and getting sanctions off the map, clearing the way for future, but it is a must that the nations government must work hard to be independent on economy without any aid from outside.

[Keysersoze]

If you only rely upon foreign aid then you will not develop. However the aid in question will allow recovery (militarily) from the sanctions of the nineties. Lets not fool ourselves into thinking that this is something that will last too long. (we all remember the Afghan experience)

The good thing is that the sanctions allowed pak infrastructure to develop. And as long as that is not allowed to slide then it can be of benefit.

Heavy industry needs to be developed to a higher level as well.

[Bull]

What happened to the bounty recd by pakistan for the "prized catches".?

[Neo]

Originally Posted by Bull

What happened to the bounty recd by pakistan for the "prized catches".?

Sssst...CIA not very happy us talking about it.
It never happened!

[Bull]

Mushraff says it happened,but he says he doesnt know who all got it.