For the first time in 16 years, Pakistan will compute its budget without incorporating the Coalition Support Fund (CSF). The decision comes in amid the rising tensions between the United States and Pakistan.
The Donald Trump administration stopped aid to Pakistan last year claiming that Pakistan gave “nothing but lies and deceit” in return for the “billions they took in aid”.
Pakistan has sent a clear message that the country has enough resources to fund its defense budget without America’s aid. The decision was made by the finance ministry in a series of pre-budget meetings.
Miftah Ismail, advisor to PM on finance, told that Pakistan will not be including CSF receipts in the upcoming budget.
Pakistan and the Coalition Support Fund
It is pertinent to mention here that CSF isn’t some money that America pours into Pakistani accounts out of generosity. Pakistan receives these payments on account of the American-led war on terror that Pakistan is involved in.
Ismail added that the USA still owes Pakistan $9 billion for the cost that the country incurred during the war on terror.
Pakistan, so far, has received an average of $971.5 million per year in the CSF from the USA. This is the amount that America agreed to pay for using Pakistan’s soil and airspace. The agreement also included the cost of refurbishment of the military hardware used in the war.
Pakistan budgeted an amount of $1.33 billion for the fiscal year 2017-18, however, it didn’t receive a single penny.
Miftah Ismail told;
Pakistan has sufficient resources to meet its defence needs and can also take care of people affected by war against terrorism. [and that] the doubtful receipts like the CSF will not be part of the budget.
America failed to rattle Pakistan by cutting off the aid. In frustration and grudge, it reached out to the global community while stooping to new lows. USA conspired at the international level to put Pakistan on the Financial Action Task Force’s (FATF) greylist.