Pakistan Receives $656 Million from USA

Dawn:

Pakistan’s central bank said on Wednesday it had received $468 million from the United States in compensation for some of its costs in battling militancy.

The US embassy in Islamabad said on Tuesday it had released $656 million to Pakistan from its so-called coalition support fund (CSF) for some costs incurred last year, with $188 million transferred last week and another $468 million on Monday.

“We received $468 million last night,” said Syed Wasimuddin, chief spokesman for the State Bank of Pakistan.

The bank said on Tuesday it had received the first $188 million last Friday.

The CSF is a US programme to reimburse allies that have incurred costs in supporting counter-terrorist and counter-insurgency operations.

Pakistan’s role in the battle against militants has been highlighted in recent days with the arrest in the United States of a Pakistani-American in connection with a botched car bomb in New York’s Times Square.

The US funds come at an important time for cash-strapped Pakistan which is in negotiations with the International Monetary Fund (IMF) for the release of a fifth tranche of an $11.3 billion loan.

The IMF board is expected to meet in mid-May to consider the fifth tranche of the loan, worth about $1.15 billion. The IMF has been pressing Pakistan to increase electricity tariffs and implement a value-added tax.

The central bank said the $188 million will be reflected in foreign exchange data to be released on Thursday, covering the week that ended on April 30. The remaining $468 million will be reflected in data to be released next week.

Foreign exchange reserves eased to $14.98 billion in the week that ended on April 23.

Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November 2008, largely because of a soaring import bill.

One thought on “Pakistan Receives $656 Million from USA

  1. Pakistan’s Auditor-General has yet to submit his
    report on the expenses paid by US Government on
    the same subject given from 2002 to 2008.How that
    was impudently used in whose service,the Nation or
    a few personalities who now claim from London to
    be the resurrection of Douglas McCarthur and shall
    return!No matter how peanuts this is compared to
    what Israel receives to keep the Palestinians down
    or our neighbors next doors to keep us depressed.
    Please! lets not scatter what we are getting to the winds.

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