Pakistan has so far received $733 million with $1.03 billion still pending under the Coalition Support Fund (CSF) disbursed by the US targeting exclusively the ongoing military operations, sources told Business Recorder here on Friday. Economic assistance under the Kerry Lugar package was targeted to be $1.5 billion per annum.
However, the US had disbursed $433 million assistance to Pakistan under this package during the first seven months of the current financial year. Out of the total disbursement $190 million was provided for the Citizen's Damage Compensation Fund after the recent floods, which was not additional to the amount pledged under the KLB.
A total of US $1.036 billion foreign aid/funds were received from bilateral and multilateral sources during 2010-11 (July-January) that is in addition to disbursements under CSF: $464 million was earmarked for development projects, $96 million for programme loans/budgetary support; $39 million for earthquake relief; $149 million under Tokyo pledges; $3 million for Afghan Relief and Reconstruction Authority; $10 million for Floods (Citizen Damage Compensation) and $275 million for other projects.
The International Monetary Fund (IMF) website indicates that in 2011 there have been no disbursements to Pakistan however $25.8 million repayment is due to the Fund during calendar year 2011. In case the Fund approves release of the stalled tranche the repayment as well as interest payments would rise for the year.
On November 24, 2008, the Executive Board of the IMF approved a 23-month Stand By Arrangement (SBA) in an amount equivalent to SDR 5,169 million (500 percent of quota). On August 7, 2009, the SBA was augmented to SDR 7,235.9 million (700 percent of quota) and extended through December 30, 2010.
The programme was extended by nine months on the request of the Pakistan government to enable it to undertake measures earlier agreed with the Fund. At the top of these measures was the introduction of the Reformed General Sales Tax (RGST), which has become controversial after the opposition's uproar.
The IMF team is currently in three town on the invitation of the government of Pakistan according to informed sources. The government is under considerable pressure to convince the IMF to release the next tranche ($1.7 billion) under the SBA before the end of the current fiscal year.
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