Hi,
You got that right----the money back with no interest at all----how long they kept close to 3/4 billion dollars----.
One of the biggest screw ups of paf history---a law suit in the u s court of law would have earned them some respect----and also penalty as well---as well as interest and some dignity and honor.
Actually we barely got some of the money back----700 million dollars after 8---10 years at nominal interest rate would have been a substantial amount---it showed how impotent the paf management and pak govt was at that time----. Just consider the devaluation factor of the dollar during that time.
Giving an example-----when all the money was in----supposedlly in a construction project a 100 miles of road cost a 100 million dollars---after 10 years the cost to do the same job may have gone up as much as 5 to 10 times---ie from a 1/2 billion to a billion dollars.
So---basically---pakistan which gave close to 700 million dollars upfront got back in real money maybe about 100 million dollars worth of equipment and grain.
That is a black spot on PAF----.
MK,
This has nothing to do with the PAF. They are not supposed to push for litigation, rather its the job of the GoP. The issue was that the US administration kept on telling Pakistan yes we will return the money and not to make a bad situation worse, GoP did not go for litigation.
The Pakistani side got a raw deal and there is no denying this, however as I have said this before, its the job of the foreign office and the GoP to ascertain what the political climate is, what is going on with the Pak-US relations so we can safeguard our own interests (in this case had the FO and the GoP been mindful, we could have stopped making payments for the F-16s), but nobody had the foresight. PAF are the end user, they had indicated that they wanted this weapon system and they went along with the purchase. It was the job of our mission, the foreign office and overall the GoP to have decided to stop the payments as soon as the sanctions were put on. But due to certain assurances given by some in the US Admin and in the hopes of trying to keep a bad situation from becoming worse, decisions were taken.
Since its hindsight, its easy for us to say that it was a bad call, but at the time maybe those in the know must have thought lets continue the course. Hopefully we are all the wiser for it now and won't repeat this mistake again.