Frustration over delay in CSF reimbursements

[H2O3C4Nitrogen]

Frustration over delay in Coalition Support Fund

The issue was also raised with President Obama’s special envoy Richard Holbrooke and US Centcom chief David Petraeus by the president, prime minister and the army chief during their recent visits. – Photo by Reuters.
​

ISLAMABAD: The authorities are frustrated over ‘unfair holding back’ by the United States of money under the Coalition Support Fund (CSF) that has now reached $2.6 billion. It has caused drawing down on security reserves and a 45 per cent cut in development projects.

According to official estimates, the amount will cross $3 billion by June this year, despite the release of $349 million last week.

A finance ministry official said the government was not bothered much about the release of US military and economic assistance under the Kerry-Lugar bill because that involved a separate mechanism which could be discussed, but the reimbursement under the CSF should not be delayed needlessly.

“It’s our money and its payment should not be delayed on flimsy grounds. It’s not aid, assistance or loan that could be released on US terms,” the official said.

He said the government had been urging the US administration at the highest level for early payment of expenses Pakistan had incurred in providing logistic support to coalition forces.

The issue was also raised with President Obama’s special envoy Richard Holbrooke and US Centcom chief David Petraeus by the president, prime minister and the army chief during their recent visits, he said.

In background discussions, officials grumble about the non-payment of dues and suggest that it has become clear that accounting procedures and visa issues are being “created” by US authorities to constrict Pakistan’s fiscal space for political reasons. “It’s simply arm twisting to say the least.”

If the entire amount is paid, Pakistan can finance some of its strategic development projects and even meet its original fiscal deficit target of 4.9 per cent that has now been revised to 5.1 per cent in consultation with the International Monetary Fund (IMF). The visa issue has been settled. Thirty-one of the 33 US personnel (auditors for verification of military bills) have been in Islamabad for more than a month but progress on verification has been negligible, an official said.

He said the US had promised to Pakistan and the IMF to release about $875 million but that was not enough.

He said visas had also been issued in phases to about 180 other officials. The matter of intelligence clearance had caused a diplomatic rift between the two countries.

The officials said the government had spent over Rs120 billion on security over and above the budgeted defence allocations and the forces were utilising their reserves (oil, ammunition and equipment) -- a situation that was neither sustainable nor affordable for long from a defence perspective.

As a result, the government has imposed a 45 per cent across-the-board cut on the development programme for all ministries, divisions and corporations and the Planning Commission has been asked to reprioritise all development schemes in consultation with the ministries concerned, remaining within 55 per cent of their original allocations.

The Public Sector Development Programme has been scaled down to Rs250 billion from the budgetary allocation of Rs446 billion.

The US has been withholding the payments since May 2008. The CSF mechanism was put in place for repayment for services Pakistan provides to the coalition forces and expenditure on anti-terror operations in the tribal region.

The US special envoy had said last week that the funds would be released soon. “It’s the money we owe to Pakistan. This is not our money. This is Pakistan’s money and it’s more than $1.2 billion. It’s being held back for accounting reasons. It is a congressional requirement.”

The CSF reimburses expenditures incurred by 27 coalition partners, including Pakistan, in direct support of US military operations. Stringent verification of Pakistani claims after introduction of new guidelines by US authorities contributed to an increase in the amount of claims which were not accepted and deferred.


DAWN.COM | Front Page | Frustration over delay in Coalition Support Fund

 

[Ahmad]

Perpahs the americans are not fully satisfied by the work Pakistan is doing. So they want to delay it until they get what they want. pakistan must truely miss G. Bush, he gave the money and didnt ask many questions.

 

[Thomas]

Perpahs the americans are not fully satisfied by the work Pakistan is doing. So they want to delay it until they get what they want. pakistan must truely miss G. Bush, he gave the money and didnt ask many questions.

 

[kidwaibhai]

No this is because the american government has required audits to be done. this will take time but i think it is a good thing to make sure the money goes where it should. Seeing that M.r. 10% is in power more accountability might not be such a bad thing.

 

[Pinditube]

WASHINGTON: The Obama administration sent lawmakers a plan for $1.45 billion in aid for Pakistan this year, funding water, energy and other projects as well as a media campaign to counter extremist views.

The 2010 spending plan, obtained by Reuters, was sent to lawmakers late on Thursday as part of the US administration’s obligation to consult Congress over the civilian aid package.

The aid is aimed at expanding ties with Islamabad beyond military spending, which amounted to more than $10 billion over the past nine years.

“It represents a rebalancing of the military and civilian assistance,” Deputy Secretary of State Jack Lew told Reuters of the package, part of a $7.5 billion, five-year aid plan passed by Congress for Pakistan last year.

The 15-page spending plan said the Obama administration was working closely with Pakistan’s government to design “high-impact” projects in energy, agriculture, water and education and to improve services and economic opportunities for people in areas susceptible to extremism.

The “funding will help build the capacity of the government of Pakistan to provide basic services while extending its writ in poorer areas vulnerable to extremism,” said the report.

The biggest chunk of the money – just over a billion – covers economic support, including funds to build up weak government capacity at both the local and national levels.

Infrastructure projects took up $55 million, with a focus on energy and helping to ease rolling blackouts that have crippled some industry and are a major public irritant.

“Over time, this assistance will strengthen ties between the American and Pakistani people by showing the US commitment to helping Pakistan address its water and energy crises, which are some of the most pressing needs of the Pakistani people,” the report said.”

There is strong anti-American sentiment in Pakistan and the hope is this new assistance will help ease that tension.

About $50 million was set aside for a “comprehensive communications strategy” to counter extremist views and strengthen Pakistani institutions and moderate voices, the report to Congress said.

“This effort will reduce the ability of al Qaeda and other extremists to influence public perceptions and attitudes and support Pakistan’s people and government as they establish a more secure, prosperous and lasting state,” the report said.

This would include a so-called rapid response team to monitor Pakistani and regional media and “swiftly correct inaccurate reporting,” of which the United States complains it is often a target.

About $150 million was devoted to health and $335 million for basic and higher education projects, particularly in areas where the government’s current capacity was poor, thus increasing its legitimacy as services improved.

An additional $130 million was in the budget to help State Department law enforcement and counter narcotics efforts in Pakistan, including the purchase of more helicopters and funds to improve the investigative skills of local law enforcement.

The United States has a difficult relationship with Pakistan and at the end of last year, Islamabad said US funding had slowed despite promises of a big injection of aid.

Washington countered that a refusal by Pakistan to issue visas to US officials needed to oversee aid programs was the cause of the delay.

The State Department’s Lew said there had been less problems with visas of late as relations improved.
US govt forwards $1.45bn aid for Pakistan | PINDITUBE

 

[H2O3C4Nitrogen]

US looks forward to further progress on CSF payments: Patterson

ISLAMABAD, Feb 26 (APP): US Ambassador to Pakistan Anne W. Patterson on Friday said the United States looks forward to working closely with the Government of Pakistan to reconcile its outstanding claims for 2009 Coalition Support Funds (CSF). She noted that just this week the United States made a payment of $ 349 million to Pakistan for all validated claims from 2008, says a US Embassy press release issued here today.

The Coalition Support Fund was established by the United States in 2001 to support allies for some of the legitimate costs they incur in the fight against extremist violence.

Payments to Pakistan slowed recently because of the inability of Embassy personnel who process the payments to obtain Pakistani visas and/or visa extensions.

“Prime Minister Gilani’s offer to work with the United States to establish a transparent process on visas that will enable us to undertake the full range of activities to support our strong bilateral relationship including reimbursing legitimate and verifiable claims was a positive development,” Ambassador Patterson said.

“We look forward to the creation of a visa mechanism that will enable U.S. officials to do our jobs without interference,” she added.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - US looks forward to further progress on CSF payments: Patterson

 

[H2O3C4Nitrogen]

US to pay part of CSF dues next week

ISLAMABAD: The United States will begin disbursement of deferred Coalition Support Fund (CSF) payments to Pakistan next week, releasing $349 million in the first phase.

US Special Envoy for Afghanistan and Pakistan Richard Holbrooke told journalists here on Thursday that the CSF money “unfortunately held back” because of accounting reasons would be partially released next week. “This is the money we owed to Pakistan,” he said.

He said the remaining amount would be paid once the tedious accounting issues were resolved.

The CSF reimburses expenditures incurred by 27 coalition partners, including Pakistan, in direct support of US military operations.

Stringent verification of Pakistani claims after introduction of new guidelines by US authorities contributed to an increase in the amount of claims which were not accepted and deferred. The outstanding payments stand at $2 billion.

Pakistan has been pleading with Washington to release the payments to ease pressure on its budget and enable it to continue its Public Sector Development Programme.

Mr Holbrooke said that US Congressional assent was required for the release of the first tranche of $349 million next week.

AFGHANISTAN:

During his meetings with Pakistani leaders, Mr Holbrooke insisted that the reintegration plan announced by President Hamid Karzai and endorsed by the international community at the London Conference would be an Afghan-led process.

He said the Afghan government was preparing a policy in this regard which would be shared with Pakistan.

The special envoy discussed the broad contours of the policy and said it would employ influential Afghan figures as negotiators with low-and mid-ranking Taliban willing to reintegrate into the society.

He said countries like Pakistan, which were considered to have influence over Taliban, could contribute to the process at the negotiations stage.

Talking to President Asif Ali Zardari, Mr Holbrooke said: “US values Pakistan’s desire for peace and stability in the region.”

Mr Holbrooke told journalists that the US was not into direct negotiations with the Taliban, and certainly not with the top leaders of their former regime. He reiterated the US government’s stance that only those Taliban would be considered for reintegration who severed their contacts with Al Qaeda.

TALKS WITH INDIA:

Mr Holbrooke said the US supported renewed contacts between Pakistan and India and wanted the process to continue. He advised Pakistani leaders against burdening the nascent process with insistence on core issues, specifically Kashmir.

Mr Holbrooke said it was encouraging that India had agreed to engage with Pakistan and issues could be brought onto the agenda once the talks progressed.

Prime Minister Yousuf Raza Gilani said during his meeting with Mr Holbrooke that Pakistan remained committed to peace in the region and his government was making sincere efforts for resumption of Composite Dialogue with India.

DAWN.COM | Front Page | US to pay part of CSF dues next week

 

[Luftwaffe]

This is what happens when the Govts don't think 15 Years ahead..starting from Musharraf!

 

[S-2]

It is a global war but only America recognizes these expenses incurred by others and is willing to re-imburse them. We too have expenses incurred in our own defense but no nation shall be rising forth to offer reimbursement of such to us. Still, what Americans have sacrificed in blood and treasure is as clear to me as that sacrificed by Pakistan is to those here.

"It’s our money and its payment should not be delayed on flimsy grounds. It’s not aid, assistance or loan that could be released on US terms...”

It's OUR money and you'd face such a war whether we offered a penny or otherwise. No nation is obligated to underwrite the defense of another. Certainly nobody is underwriting ours.

I welcome Pakistan's departure from our alliance should they feel the burden of their own defense is more than can be borne. Make treaty with the Taliban and Al Qaeda and see peace again settle upon the land of the "pure".

This strikes back to the core of this war. Is Pakistan fighting for America or for itself? If for itself, then be grateful as I don't see such being offered to you by any other nation on earth, including especially the PRC. If for America you fight, then write your representatives and demand a cessation of all combat operations on your lands. You FIGHT, btw, nowhere else. Let our supplies through at whatever the market bears for your transportation companies or cease that as well.

Either way is fine with me and the clarification for all concerned will be sobering but also welcome. Our auditors have a legitimate obligation to our congress and citizens. The delays of their visas were welcomed by too many here who saw in such petulance an act of defiance that was both childish in its nature as well as petty in the clutching eagerness to chase the almighty greenback.

Anybody with half a brain can see that if Pakistan were attacked by India tomorrow, you'd not flinch to spend your last penny in your defense and without question of where the next penny might come from. So too here if you genuinely fight for your country and not America. That's for you to figure out. In the meantime, the money remains ours and given by our generousity unmatched by anybody else.

Thanks.

 

[pak-yes]

Wow S-2 you talk like a king.lol.

 

[third eye]

DAWN.COM | Front Page | Pakistan loses $400m to ?enhanced oversight?


By Baqir Sajjad Syed
Wednesday, 03 Mar, 2010

ISLAMABAD: Over $400 million in reimbursement claims by Pakistan under Coalition Support Fund (CSF) for 2008 have been rejected by the United States because of new guidelines requiring ‘enhanced oversight and accountability’.

Total claims for 2008 were $1.4 billion, but Pakistan got $997 million in reimbursement, whereas the remaining claims were disallowed on grounds of “inadequate substantiation, over-billing” and other objections, sources told Dawn.

About $548 million were initially paid and the rest was deferred. It took the Pentagon another 18 months to settle the deferred claims. While paying $349 million last week in settlement of all claims from 2008, US officials reportedly tendered a callous excuse for the long delay: accounting problems.

Claims worth over $2 billion under CSF for 2009 are still pending because of intense scrutiny of Pakistan’s claims. After the cuts in payments for 2008, there are renewed fears in Islamabad that demands for last year would meet a similar fate.

The claims pertained to expenditures incurred by Pakistan on food and clothing of troops; fuel; transportation; communication; medical charges; helicopter operations; destroyed paraphernalia; and repair and maintenance of equipment. Under a bilateral agreement between ministries of defence, US repays ‘legitimate expenditures’ incurred in support of its military operations.

Pakistan’s senior military commanders, peeved at the ‘penny-pinching’ CSF reimbursement procedures, say these were distressingly impertinent to Pakistan’s over 30,000 casualties in the war on terror.

The problems in repayment have compelled Islamabad to consume its trivial reserves for continuing its logistic and operational support for American counter-terrorism operations while cutting on its own development needs and compromising its war preparedness, senior government officials and military officers suggested during background interviews.

BITTERNESS IN ISLAMABAD: The inordinate delays in clearing deferred amounts and linking of the issue by the US to issuance of visas to its diplomats and embassy staff have intensified frustration in Pakistan. The release of latest tranche was made possible only after Islamabad issued most of the requested visas.

“It is too cold-hearted of the US to stress on the money it gives to Pakistan, but disregard its sacrifices,” a military commander said. The Americans in every interaction try to make their Pakistani interlocutors realise that ‘they were doing great favour to Pakistan’, he added.

About 2,500 Pakistani soldiers lost their lives in the war on terror while another 8,000 were injured, many of them crippled and maimed for life. Additionally, some 22,000 civilians were killed or injured by militants.

“Pakistan has suffered more casualties than the combined tally for troops from 43 countries fighting in Afghanistan,” another general noted, adding the government had to compensate the families of those killed or injured and look after their welfare.

“In those terms, this huge casualty figure for civilians and military men translates into massive economic burden on government’s treasury.”

Another senior official said Washington was indifferent to these realities and saw CSF only as a generous military support programme and an incentive for keeping Pakistan armed forces out on American counter-terrorism mission.

Additionally, Pakistan’s road infrastructure has begun crumbling because of heavy equipment and supplies for US operations in Afghanistan shipped from Karachi to Chaman and Torkham border. About 58,000 heavy US containers, government figures show, were ferried through Pakistan without any charge.

There had been little acknowledgement of Pakistan’s support for logistics, a senior officer looking after the security of shipments regretted, adding that the focus had been on terrorist attacks on US consignments passing through Pakistani territory.

Sharing statistics on US losses because of those attacks, he said they were as low as 0.1 per cent of the total volume of goods carried through Pakistan.

Feelings of resentment in the army, analysts believe, are serious for US strategists because their success in Afghanistan critically depends on wholehearted support of Pakistan military.

US Ambassador Anne W. Patterson, in a statement, looked forward to working closely with Islamabad for reconciling outstanding CSF claims for 2009. She attributed the delays to inability of the embassy personnel, engaged in processing the payments, to obtain Pakistani visas or get them extended.

US repays ‘legitimate expenditures’ incurred in support of its military operations. Pakistan’s senior military commanders, peeved at the ‘penny-pinching’ CSF reimbursement procedures, say these were distressingly impertinent to Pakistan’s over 30,000 casualties in the war on terror.

The problems in repayment have compelled Islamabad to consume its trivial reserves for continuing its logistic and operational support for American counter-terrorism operations while cutting on its own development needs and compromising its war preparedness, senior government officials and military officers suggested during background interviews.

 

[sparklingway]

Oversight should be there but should not consume the aid money.

 

[MastanKhan]

Hi,

Msharraf and his team made a very bad deal when it came to finances. He should have had an american real estate guy or a car salesman on his side---Musharraf should have asked for upfront payment of expenses every year from the U S---.

When dealing with the U S you ought to have leverage all the time---pakistan cannot leave it to good faith when it is dealing with the u s of a---it hurts itself---the pakistanis get frustrated with the americans and the pakistani community does not have good feeling about the american dealings---.

We should know by now how the americans work---.

 

[Uzair Zahir]

ISLAMABAD: Over $400 million in reimbursement claims by Pakistan under Coalition Support Fund (CSF) for 2008 have been rejected by the United States because of new guidelines requiring ‘enhanced oversight and accountability’.

Total claims for 2008 were $1.4 billion, but Pakistan got $997 million in reimbursement, whereas the remaining claims were disallowed on grounds of “inadequate substantiation, over-billing” and other objections, sources told Dawn.

About $548 million were initially paid and the rest was deferred. It took the Pentagon another 18 months to settle the deferred claims. While paying $349 million last week in settlement of all claims from 2008, US officials reportedly tendered a callous excuse for the long delay: accounting problems.

Claims worth over $2 billion under CSF for 2009 are still pending because of intense scrutiny of Pakistan’s claims. After the cuts in payments for 2008, there are renewed fears in Islamabad that demands for last year would meet a similar fate.

The claims pertained to expenditures incurred by Pakistan on food and clothing of troops; fuel; transportation; communication; medical charges; helicopter operations; destroyed paraphernalia; and repair and maintenance of equipment. Under a bilateral agreement between ministries of defence, US repays ‘legitimate expenditures’ incurred in support of its military operations.

Pakistan’s senior military commanders, peeved at the ‘penny-pinching’ CSF reimbursement procedures, say these were distressingly impertinent to Pakistan’s over 30,000 casualties in the war on terror.

The problems in repayment have compelled Islamabad to consume its trivial reserves for continuing its logistic and operational support for American counter-terrorism operations while cutting on its own development needs and compromising its war preparedness, senior government officials and military officers suggested during background interviews.

BITTERNESS IN ISLAMABAD: The inordinate delays in clearing deferred amounts and linking of the issue by the US to issuance of visas to its diplomats and embassy staff have intensified frustration in Pakistan. The release of latest tranche was made possible only after Islamabad issued most of the requested visas.

“It is too cold-hearted of the US to stress on the money it gives to Pakistan, but disregard its sacrifices,” a military commander said. The Americans in every interaction try to make their Pakistani interlocutors realise that ‘they were doing great favour to Pakistan’, he added.

About 2,500 Pakistani soldiers lost their lives in the war on terror while another 8,000 were injured, many of them crippled and maimed for life. Additionally, some 22,000 civilians were killed or injured by militants.

“Pakistan has suffered more casualties than the combined tally for troops from 43 countries fighting in Afghanistan,” another general noted, adding the government had to compensate the families of those killed or injured and look after their welfare.

“In those terms, this huge casualty figure for civilians and military men translates into massive economic burden on government’s treasury.”

Another senior official said Washington was indifferent to these realities and saw CSF only as a generous military support programme and an incentive for keeping Pakistan armed forces out on American counter-terrorism mission.

Additionally, Pakistan’s road infrastructure has begun crumbling because of heavy equipment and supplies for US operations in Afghanistan shipped from Karachi to Chaman and Torkham border. About 58,000 heavy US containers, government figures show, were ferried through Pakistan without any charge.

There had been little acknowledgement of Pakistan’s support for logistics, a senior officer looking after the security of shipments regretted, adding that the focus had been on terrorist attacks on US consignments passing through Pakistani territory.

Sharing statistics on US losses because of those attacks, he said they were as low as 0.1 per cent of the total volume of goods carried through Pakistan.

Feelings of resentment in the army, analysts believe, are serious for US strategists because their success in Afghanistan critically depends on wholehearted support of Pakistan military.

US Ambassador Anne W. Patterson, in a statement, looked forward to working closely with Islamabad for reconciling outstanding CSF claims for 2009. She attributed the delays to inability of the embassy personnel, engaged in processing the payments, to obtain Pakistani visas or get them extended.

US repays ‘legitimate expenditures’ incurred in support of its military operations. Pakistan’s senior military commanders, peeved at the ‘penny-pinching’ CSF reimbursement procedures, say these were distressingly impertinent to Pakistan’s over 30,000 casualties in the war on terror.

The problems in repayment have compelled Islamabad to consume its trivial reserves for continuing its logistic and operational support for American counter-terrorism operations while cutting on its own development needs and compromising its war preparedness, senior government officials and military officers suggested during background interviews.



Lets leave this war on terrorism because our allies don't trust us and we should stop acting as scape goats to Americans

 

[Uzair Zahir]

Americans don't trust us and we don't trust them ...
Who is fighting who for what reason ..??
Just for money or for the integrity of Pakistan ! ?