Pakistan has Given Reverse Aid to the US Worth $5.1 Billion Since 2006

[deathfromabove]

Saad Mohammad, Economistan

Much hue and cry has been made out of the Aid US has given to Pakistan over the years. However, all this Aid amounts to pittance when we realize that US has given Pakistan over a period of 60 years only $8.9 billion dollars in economic assistance. This amount is less than even the remittances that Pakistanis would send this year which would amount to a little more than $9 billion dollars. The military aid that the US has given to Pakistan over the past 62 years amounts to $14.7 billion, which includes $5 billion dollars which were given to Pakistan during the Zia years to drive the Soviets back from Afghanistan thus signaling the end of the Cold War. In short, Pakistan won the war for the US for just $5 billion which speaks volumes about the efficiency and determination of Pakistan Armed Forces.

This $5 billion not only covered the cost of arming and training Afghan fighters and the supply of stinger missiles which were instrumental in bringing down Russian air power but also helicopters and other weapons and fuel needed to defeat the Soviets. It was a war in which many Pakistani fighter pilots also laid down their lives in an effort to drive the Russians away from Afghanistan.


The US basically used Pakistan to win its war against Russia and dubbed the Foreign Direct Investment in this Cold War as US Aid. Paying another country to fight its own war should not be called as Aid but wages for fighting the war. Again during so the called “War on Terror”, the US has enrolled its old and forgotten partner to do all the work for it and given Pakistan a little more than $ 9 billion as Coalition Support Funds (or “Military Aid”) to win the war.

A major portion of these Coalition Support Funds however, also includes the cost of fuel that Pakistan supplies to the US forces based in Afghanistan. In effect the US calls the money it gives to Pakistan for the fuel that the US itself uses in Afghanistan as “Military Aid”. There are also reports that Pakistan is supplying the fuel to the US below cost. The Coalition Support Funds and Security Assistance almost entirely are composed of fuel plus the military hardware costs that the US has supplied to Pakistan. Given below is a complete breakdown of the so called “Military Aid” since 911 to Pakistan,
“Military Aid” to Pakistan since 911
Coalition Support Funds $5.6 b
Security Assistance $1.8 b
Budget Support $1.6 b
Development $0.9 b

The breakdown of the total aid given to Pakistan by the US is as follows,
Total US Aid to Pakistan in past 62 years($ millions)
Military Economic
1950-1964 700 2500
1965-1979 26 2550
1979-1990 5000 0
1991-2000 5 429
2001-2009 9000 3500
Total $14.731 billion $8.979 billion

Ken Stier writes in an article on aid to Pakistan writes,

“Currently, 70 to 80 cents of every dollar allocated in aid comes back to the U.S. instead of staying in the country it is meant to benefit because of USAID’s dependence on contractors.”

The US is using US companies and contractors to channel this so called “Aid” which is used to support US companies presently operating in Pakistan against Chinese firms along with the construction of infrastructure projects like the building and expansion of the $1 billion dollar US Embassy in Pakistan. Under the same token if Pakistan spends some money from its exchequer to build part of its embassy in the US, would that also be termed as Pakistan’s aid to the US? or for that matter if Pakistan purchased any military hardware from the US would it be termed as Pakistan’s aid to the US? Under the current US definition of “aid” it would. If so then it would not be wrong to say that Pakistan has given the US aid worth $5.1 billion since 2006 because of the money it spent for the purchase of F-16s from the US. Well the logic behind the Kerry-Lugar bill is the same. This so called aid is not really aid at all instead it is US Foreign Direct Investment in Pakistan to accomplish its nefarious designs such as expansion of US military infrastructure in Pakistan through use of private military contractors and blacklisted companies like Black Water and stationing of US marines and hardware in Pakistan through overt and covert means.

The funny thing is that this so called US Aid is spread over many years comes with harsh conditions. The US just playing with terminologies and fooling the people of Pakistan into thinking that the money US is using in supporting US companies in Pakistan and building its own embassy is aid. It is about time for Pakistan to wake up and aggressively address the issues of the sovereignty in Pakistan and excessive US interference in Pakistan’s internal affairs in the garb of this so called aid. Pakistan would also be well served to reject this so called aid and closely scrutinize all of this “Foreign Direct Investment” from the US which it calls aid to Pakistan. Pakistan should require the US to give a detailed list of each and every item that is purchased through this money in Pakistan and which US companies, contractors and concerns are the beneficiaries of the so called “aid”.
Pakistan’s Aid to the US since 2006
Item 1: 36 New F-16 Block 50/52s – $3 billion
Item 2: Weapons for the New F-16s – $650 Million
Item 3: F-16A/B Mid-Life Update Modification Kits – $1.3 billion
Item 4: F-16A/B Engine Modifications & UP/STAR – $151 Million

Thanks to the billions of dollars that overseas Pakistanis have sent to Pakistan just this year($ 9 billion), the current account deficit of the current financial year for Pakistan has reduced to a mere $462 million dollars which bodes well for Pakistan. Pakistan’s stock market is also in recovery mode and rose by 2.4% to 9,374 points since Sept 24. It is about time Pakistan reconsidered its partnership with the US and called the US military aid or foreign direct investment in Pakistan “US military expense” and the US economic assistance to Pakistan over the last 62 years of $ 8.9 billion dollars what it is, a “Pittance”.

 

[Spring Onion]

Can someone stuff this stuff in the heads of those Indian friends here who are telling us that the quarter of chapati we eat is given by their new masters US

 

[applesauce]

sigh... sadly the government of pakistan allowed this to happen, also claiming the pakistani brought down the ussr for the US is very misleading, they were instrumental but not the root cause of the collapse of the ussr, the years of the arms race, space race and various proxy wars cause the closed off soviet economy to simple go bankrupt

 

[idea123]

Can someone stuff this stuff in the heads of those Indian friends here who are telling us that the quarter of chapati we eat is given by their new masters US

Pakistan’s Aid to the US since 2006
Item 1: 36 New F-16 Block 50/52s – $3 billion
Item 2: Weapons for the New F-16s – $650 Million
Item 3: F-16A/B Mid-Life Update Modification Kits – $1.3 billion
Item 4: F-16A/B Engine Modifications & UP/STAR – $151 Million


Is this what U call aid ??
U also know that the money for F-16 was forwarded in "over confidance " that pak could circumvent the pressler amendment..and ultimately pak's money got stuck in banks. Big mistake by BB.

BTW, I thought that F-16 itself were part of aid to pak by US...to fight Soviets ...
Nice article

 

[Srinivas]

Can someone stuff this stuff in the heads of those Indian friends here who are telling us that the quarter of chapati we eat is given by their new masters US

More than that you have to stuff this in your corrupt leaders heads who are bending to the US pressure.

 

[Comet]

Wow... This article can be well used by opposition in Pakistan to further pressure Government. Although, PML-N will not use it at all.

 

[abbasniazi]

Saad Mohammad, Economistan

Much hue and cry has been made out of the Aid US has given to Pakistan over the years. However, all this Aid amounts to pittance when we realize that US has given Pakistan over a period of 60 years only $8.9 billion dollars in economic assistance. This amount is less than even the remittances that Pakistanis would send this year which would amount to a little more than $9 billion dollars. The military aid that the US has given to Pakistan over the past 62 years amounts to $14.7 billion, which includes $5 billion dollars which were given to Pakistan during the Zia years to drive the Soviets back from Afghanistan thus signaling the end of the Cold War. In short, Pakistan won the war for the US for just $5 billion which speaks volumes about the efficiency and determination of Pakistan Armed Forces.

This $5 billion not only covered the cost of arming and training Afghan fighters and the supply of stinger missiles which were instrumental in bringing down Russian air power but also helicopters and other weapons and fuel needed to defeat the Soviets. It was a war in which many Pakistani fighter pilots also laid down their lives in an effort to drive the Russians away from Afghanistan.


The US basically used Pakistan to win its war against Russia and dubbed the Foreign Direct Investment in this Cold War as US Aid. Paying another country to fight its own war should not be called as Aid but wages for fighting the war. Again during so the called “War on Terror”, the US has enrolled its old and forgotten partner to do all the work for it and given Pakistan a little more than $ 9 billion as Coalition Support Funds (or “Military Aid&#8221 to win the war.

A major portion of these Coalition Support Funds however, also includes the cost of fuel that Pakistan supplies to the US forces based in Afghanistan. In effect the US calls the money it gives to Pakistan for the fuel that the US itself uses in Afghanistan as “Military Aid”. There are also reports that Pakistan is supplying the fuel to the US below cost. The Coalition Support Funds and Security Assistance almost entirely are composed of fuel plus the military hardware costs that the US has supplied to Pakistan. Given below is a complete breakdown of the so called “Military Aid” since 911 to Pakistan,
“Military Aid” to Pakistan since 911
Coalition Support Funds $5.6 b
Security Assistance $1.8 b
Budget Support $1.6 b
Development $0.9 b

The breakdown of the total aid given to Pakistan by the US is as follows,
Total US Aid to Pakistan in past 62 years($ millions)
Military Economic
1950-1964 700 2500
1965-1979 26 2550
1979-1990 5000 0
1991-2000 5 429
2001-2009 9000 3500
Total $14.731 billion $8.979 billion

Ken Stier writes in an article on aid to Pakistan writes,

“Currently, 70 to 80 cents of every dollar allocated in aid comes back to the U.S. instead of staying in the country it is meant to benefit because of USAID’s dependence on contractors.”

The US is using US companies and contractors to channel this so called “Aid” which is used to support US companies presently operating in Pakistan against Chinese firms along with the construction of infrastructure projects like the building and expansion of the $1 billion dollar US Embassy in Pakistan. Under the same token if Pakistan spends some money from its exchequer to build part of its embassy in the US, would that also be termed as Pakistan’s aid to the US? or for that matter if Pakistan purchased any military hardware from the US would it be termed as Pakistan’s aid to the US? Under the current US definition of “aid” it would. If so then it would not be wrong to say that Pakistan has given the US aid worth $5.1 billion since 2006 because of the money it spent for the purchase of F-16s from the US. Well the logic behind the Kerry-Lugar bill is the same. This so called aid is not really aid at all instead it is US Foreign Direct Investment in Pakistan to accomplish its nefarious designs such as expansion of US military infrastructure in Pakistan through use of private military contractors and blacklisted companies like Black Water and stationing of US marines and hardware in Pakistan through overt and covert means.

The funny thing is that this so called US Aid is spread over many years comes with harsh conditions. The US just playing with terminologies and fooling the people of Pakistan into thinking that the money US is using in supporting US companies in Pakistan and building its own embassy is aid. It is about time for Pakistan to wake up and aggressively address the issues of the sovereignty in Pakistan and excessive US interference in Pakistan’s internal affairs in the garb of this so called aid. Pakistan would also be well served to reject this so called aid and closely scrutinize all of this “Foreign Direct Investment” from the US which it calls aid to Pakistan. Pakistan should require the US to give a detailed list of each and every item that is purchased through this money in Pakistan and which US companies, contractors and concerns are the beneficiaries of the so called “aid”.
Pakistan’s Aid to the US since 2006
Item 1: 36 New F-16 Block 50/52s – $3 billion
Item 2: Weapons for the New F-16s – $650 Million
Item 3: F-16A/B Mid-Life Update Modification Kits – $1.3 billion
Item 4: F-16A/B Engine Modifications & UP/STAR – $151 Million

Thanks to the billions of dollars that overseas Pakistanis have sent to Pakistan just this year($ 9 billion), the current account deficit of the current financial year for Pakistan has reduced to a mere $462 million dollars which bodes well for Pakistan. Pakistan’s stock market is also in recovery mode and rose by 2.4% to 9,374 points since Sept 24. It is about time Pakistan reconsidered its partnership with the US and called the US military aid or foreign direct investment in Pakistan “US military expense” and the US economic assistance to Pakistan over the last 62 years of $ 8.9 billion dollars what it is, a “Pittance”.

Thought provoking brother, they are and have always played games with the top notch stupids of our country and this type of analysis could be undestood only by those who are learnent people.

Please don't expect wisdom from a parliament who has in the recent past dismissed the Graduation condition for becoming a parliamentarian.

But on the positive node, i'd say now people have become more aware of these conspiracies and new generation has the courage to stand against all the odds...

 

[deathfromabove]

How about a reality check on our neighbours:

Foreign Aid and India: Financing the Leviathan State

With a debate now raging over whether further foreign aid programs financed by U.S. taxpayers are justified in the post-Cold War era, a review of the development experience of the recipient of the largest amount of foreign aid is instructive. India has received more foreign aid than any other developing nation since the end of World War II–estimated at almost $55 billion since the beginning of its First Five-Year Plan in 1951.(1) It has long been an article of faith among development economists and policymakers that foreign aid is a necessary and central component of economic development, yet the record of Indian economic development since 1947 belies that view.

India has had one of the lowest rates of growth of all developing countries and remains one of the poorest countries in the world after almost 45 years of aid-financed, centrally planned development. Foreign aid has directly financed and sustained India’s centralized planning and control framework and thereby financed the growth of one of the noncommunist world’s largest and most inefficient public sectors. In 1988-89, 101 of the country’s 222 largest public-sector companies recorded losses and contributed to a federal deficit five times as large, in relative terms, as the U.S. budget deficit.(2)

Today, after nearly 45 years of planned economic development, India’s annual per capita income remains around $300. Almost 40 percent of Indians live below the official poverty line, and the absolute number of Indians in that category increased sharply between the late 1950s and the mid-1980s. In short, India is a paradigmatic case of the failure of government-sponsored aid; it stands as a dramatic testimonial to why such aid should go the way of the socialist development model it has bankrolled for decades.

Foreign Aid and India: Financing the Leviathan State

DAWN.COM | Business | WB okays $4.3bn loans to India

 

[Srinivas]

How about a reality check on our neighbours:

Foreign Aid and India: Financing the Leviathan State

With a debate now raging over whether further foreign aid programs financed by U.S. taxpayers are justified in the post-Cold War era, a review of the development experience of the recipient of the largest amount of foreign aid is instructive. India has received more foreign aid than any other developing nation since the end of World War II–estimated at almost $55 billion since the beginning of its First Five-Year Plan in 1951.(1) It has long been an article of faith among development economists and policymakers that foreign aid is a necessary and central component of economic development, yet the record of Indian economic development since 1947 belies that view.

India has had one of the lowest rates of growth of all developing countries and remains one of the poorest countries in the world after almost 45 years of aid-financed, centrally planned development. Foreign aid has directly financed and sustained India’s centralized planning and control framework and thereby financed the growth of one of the noncommunist world’s largest and most inefficient public sectors. In 1988-89, 101 of the country’s 222 largest public-sector companies recorded losses and contributed to a federal deficit five times as large, in relative terms, as the U.S. budget deficit.(2)

Today, after nearly 45 years of planned economic development, India’s annual per capita income remains around $300. Almost 40 percent of Indians live below the official poverty line, and the absolute number of Indians in that category increased sharply between the late 1950s and the mid-1980s. In short, India is a paradigmatic case of the failure of government-sponsored aid; it stands as a dramatic testimonial to why such aid should go the way of the socialist development model it has bankrolled for decades.

Foreign Aid and India: Financing the Leviathan State

DAWN.COM | Business | WB okays $4.3bn loans to India

friend at present India can sustain economic growth with out any loan from out side

 

[rubyjackass]

Yup, India was once called a botom less pit by all aid agencies and countries.

 

[Brainwashed]

sigh... sadly the government of pakistan allowed this to happen, also claiming the pakistani brought down the ussr for the US is very misleading, they were instrumental but not the root cause of the collapse of the ussr, the years of the arms race, space race and various proxy wars cause the closed off soviet economy to simple go bankrupt

sorry if it sounds a little off-topic: soviet didn't play these games alone, why do you think the us didn't collapse?