US withholds $12 billion payment to Pakistan's army

Amidst rising Pak-US tensions, the Obama administration has withheld the payment of 12 billion dollars to the Pakistan army, citing some serious flaws in bills worth 12 billion US dollars which the army had sent to the US treasury department for reimbursement.

According to an official source, the Americans feel that Pakistani authorities are not following the criteria that had been set to have the amount reimbursed in line with American laws.

The source said that during bilateral talks, US authorities had complained time and again that in most cases, bills submitted to the US treasury were either faulty or they were being charged twice under one head. The source added that the Pakistani delegation had raised the issue during the Pak-US strategic dialogue in Washington last year. After detailed discussions, the US had agreed that it will release a few hundred million dollars, but not a single penny has so far been provided.

Rather than financial misunderstanding, however, it is believed that Pakistan’s unease about sinking its feet into North Waziristan is leading to the further souring of its relationship with its once trusted ally.