$80 Million US Aid to Pak[istan] for Supporting War on Terror

Associated Press
February 18, 2002
The United States paid Pakistan $80 million for providing logistical support to its forces in the war against terrorism, finance ministry officials said on Monday.

The United States will pay another $200 million next month, ministry officials said on condition of anonymity. Finance Secretary Yunous Khan said that the $80 million already received are for use of airports, power supply, water and other resources in support of military operations in Afghanistan.

Moin Afzal, secretary general of the Finance Ministry, said Pakistan will bill the US government every month for services its troops are using here. "The amount will vary from day-to-day and month-to-month," he said.

Other officials, speaking on condition of anonymity, said February's bill, which will be paid next month, amounts to $80 million. Pakistan announced unconditional support to the global war against terrorism following the September 11 terrorist strikes in the United States and allowed US forces to use its airports and airspace for operations in neighboring Afghanistan.

Although Taliban rule collapsed last year, the United States has said military operations in Afghanistan are far from over because Osama Bin Laden and other major al-Qaeda figures remain at large.

The war in Afghanistan was a blow to Pakistan's fragile and struggling economy. Its exports declined, foreign direct investment dropped and the freight and insurance charges shot up. In an attempt to support Pakistan's economy, the United States gave $673 million in grants and helped Islamabad secure other help including debt rescheduling from foreign lendors.

During President Pervez Musharraf's visit this month to Washington, President George W. Bush promised that the United States would write off $1 billion in bilateral debt, Finance Minister Shaukat Aziz said here on Saturday.

The US Congress is likely to approve the planned write-off in three to six months, Pakistani officials said. The next US budget will also provide $304 million to Pakistan for fiscal support, they added.

More Information on Debt Relief
More Information on Poverty, Debt and Development

FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.