While official sources in Washington have confirmed that they are holding $255 million from a fund meant to provide military training and equipment to Islamabad
Along with Israel in Middle East, Pakistan has historically been among the top recipients of US aid in the world — since 1950 when its then Prime Minister Liaqat Ali Khan made a record 23-day trip (May 3 to May 26), asking for financial assistance for his fledgling nation.
While official sources in Washington have confirmed that they are holding $255 million from a fund meant to provide military training and equipment to Islamabad, the support had already plummeted to $526 million in 2017. According to archives, Khan chose to visit and ally with Washington after the neighbouring superpower Soviet Union cold-shouldered him, keeping him in waiting and finally proposing his itinerary for his arrival in Moscow, on August 14, 1949, which coincided with the second anniversary of Pakistan's independence.
Though the decline in aid for Pakistan began during former president Barack Obama's second term, the Trump administration has taken a much tougher line with Islamabad. US civilian and military assistance for Pakistan had peaked to more than $2.2 billion a year immediately after the 9/11 terror attacks. The overall total security-related assistance has fallen from $849 million in 2012 to an estimated $303 million in 2017. The corresponding figure for India was $85 million.
As per USAID figures, the total assistance meant for Pakistan during 2018 was expected to be $345 million, including $134 million in security-related assistance and $211 million in economic aid. Pakistan's decision to join the US-led war on terror in 2001 had led to huge jump in assistance. Between 2002 and 2011, the total aid – including economic support funds, foreign military financing, Coalition Support Fund (CSF) reimbursements and anti-terrorism funding – was worth a whopping $22.14 billion.
Former Pakistan High Commissioner in India Abdul Basit believed that costs incurred by Pakistan were much higher as its economy took a hit by becoming direct target of terrorists by joining the US-led alliance. Quoting global rating agency Moody's figures, Basit said Pakistan's GDP growth could have been 5.1 per cent higher, and the cost of borrowing, 100 basis points lower. Also he believed that investment in Pakistan could have also been 9.3 per cent higher, if it had not been entangled into the US war in Afghanistan. He added that out of the US aid, a major part $8.8 billion was in the form of reimbursements from the CSF that is arranging transportation and security to the supplies right form Karachi port to Afghanistan, where allied forces were stationed. Another component relates to $5.7 billion in security-related aid. But the killing of most wanted American terrorist Osama bin Laden in a compound located close to Pakistan's main military academy had a significant impact relations.
The US Congressional research statists shows that CSF reimbursements have dipped in 2012 to $688 million, before increasing to $1.4 billion in 2013. Since then, the amount has fallen regularly making it to $550 million in 2016. At least a third of allocations under the CSF head in the US defence budget since 2015 have been tied to certifications that Pakistan is taking action against the Haqqani Network, a group that targets US troops in Afghanistan. Experts here believe that the aid component relating to foreign military financing, which consists of grants and loans to purchase US military equipment may not take much dip. Over the years also it has not been affected much ranging from $296 million in 2012 to $255 million in 2017. It is used by Pakistan to purchase military equipments to keep the US military industries in pink health.
OVER THE YEARS
- In 1962, US economic assistance to Pakistan was over $2.3bn
- In 1965, US suspended military aid to Pakistan following conflict with India.
- In 1979, following CIA confirmation of Pakistan’s nuclear program, President Jimmy Carter suspended all aid barring food
- Through the 1990s, Pressler Amendment cuts off most aid
- After 9/11, US substantially increases aid
- In 2010, military assistance peaked at $2.5bn
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