In the context of PM’s US trip
In the aftermath of PM Mian Nawaz Sharif’s USA visit much is left to be desired. The USA has refused cooperation on three major strategic issues of vital import to Pakistan: Pak-Iran gas pipeline, civil-nuclear agreement and access to American markets with tax rebates like the ones granted to Bangladesh by several western countries. Instead Pakistan is warned of severe consequences on going ahead with the Pak-Iran gas pipeline project without offering attractive alternatives.
The US also advocated the Indian stance with regard to terrorism while ignoring Pakistan’s genuine demands backed up by evidences shared through official channels, of dismantling the Indian terror infrastructure in Afghanistan wreaking havoc in Pakistan.
Despite all this humiliation and that too for a country which has sacrificed over 40,000 civilian and 7,000 plus security personnel for the US by importing home its “War on Terror”, by aligning itself with it, there is still a powerful segment of our intelligentsia claiming that Pakistan cannot survive without the American economic and military assistance. Hence, we have no option or control over our relationship with the US. This is a carefully crafted stance, one that is less frequently examined with out of the box critiques.
This reminds me of my research paper delivered at PINA (Pakistan Institute of National Affairs) hosted by Mr Altaf Hassan Quraishi with participants of the likes of Mr Mushahid Hussain Syed, Sartaj Aziz, Khurshid Kasuri, etc. Let us examine if this myth hammered down the sub-conscience of an entire nation actually holds merit. It can then act as a starting point to work out our options and review the strategic ploys we can employ to ensure deliverance of our strategic interests from the Pak-US relationship.
Part 1: US’ Economic Assistance to Pakistan:
Pakistan has incurred material losses of over $ 100 billion as a result of alliance with the US in the war on terror. To date, Pakistan has received a meager $15 billion of which $10 billion relates to the Coalition Support Fund (CSF) reimbursements for expenses incurred by Pakistan in the US-led war. The CSF expense reimbursements are at the mercy of US bureaucracy which routinely rejects up to 40 per cent of the claims already spent by Pakistan without providing any evidence or explanation for rejection, simply terming them ‘suspicious’.
It is worth mentioning here that the US officials often claim the total ‘monetary assistance’ during this period to be $25 billion but this seems to include humanitarian assistance for flood victims which mostly included provision of products of US corporations and was part of an international community initiative. Even more importantly it includes claimed funds spent directly through the USAID with Pakistan having no knowledge of the purpose, amount and utilization.
In all probability these funds were used to further American interests rather than assisting Pakistan’s ailing economy. Another major makeup of the figure quoted by American officials includes reimbursements of CSF expenses already incurred by Pakistan for the US.
In simple terms, Pakistan’s state has received economic assistance from the US amounting to $5 billion only against its losses of $100 billion over the last 12 years.
The largest economic assistance package announced in this duration was the Kerry-Lugar-Berman Bill (KLB) of 2009 promising $1.5 billion per annum for 2010-2014 totaling $7.5 billion. As per the last available figures at the time of writing, the actual payments received officially by the government of Pakistan to date under “KLB” amounts to just $485 million – 6.47 per cent of the total package and 8.08 per cent of the promised disbursements till 2013. Even out of this meagre cash-flow, heavy fees were paid to ‘experts’, leaving even lesser to be actually spent. This makes the tall claims of ‘heavy’ economic assistance seem like a petty joke with a nuclear-armed-nation of 180 million.
An additional $1.6 to 2 billion approximately is claimed to have been spent through the USAID and the NGOs, over which Pakistan’s government has no control and knows nothing about as to the purpose, deliverance or usage. Rather than actually assisting its’ non-NATO ally substantially, the US focus seems to be on data-crunching and generating media frenzy using distorted facts to psychologically subjugate Pakistan’s decision-making brains.
For the sake of argument, let us assume that the entire 100 per cent was actually paid and that too formally to the government of Pakistan and not through the USAID. An assumed full payment to government of Pakistan of the entire Kerry-Lugar assistance would still amount to 0.64 per cent of the total GDP of Pakistan.
Now let us take a minute and ask ourselves which country in the world would fail with having to let go of about half a percent of its total GDP? And let us not forget the possible strategic and economic benefits of an independent foreign and economic policy.
This therefore dispels the myth that Pakistan cannot survive without US’ economic assistance. The necessary steps required for an economic revival are, using an economic stimulus and efficient management policy eradicating the rampant corruption instead of pursuing the IMF dictated ‘austerity’ and privatization policy currently been pursued by the incumbent government.
Omer Zaheer Meer is a leading economist and a qualified chartered accountant, financial analyst and anti-money laundering expert. He can be reached at [email protected].
Perfect answer by a beautiful mind to fake stupid libidos
Brilliant column Omar. It is amazing analysis discussed in a logical way with a seamless flow. Keep up the good work.
Proud of you.
The writer has proved beyond doubt that our relationship with the US is a loss-making one, and in a big way. As for pittance received from the US, if one of our prominent leaders just reduced his level of corruption, there will be plenty of funds available to offset the non-receipt of aid from the US.
Our leaders still keep singing praises for the US and insist that Pakistan can't do without US aid. Obviously, such stance will bring them dividends from the huge fund that the US has created to improve its image in Pakistan. Moreover, very many of our leaders, if not holding dual nationality or Green Card themselves at present, will have their close family members enjoying these and by their words and deeds, they have got to try to create the 'right' environment for their family members and eventually for themselves when they finally land there.
Unfortunately, the ordinary Pakistanis bear main responsibility for their own worsening plight because while they may not be willing to stand up and fight for their rights, they are far too eager and busy fighting each other on ethnic and sectarian grounds, and have no energy left to stand up to government for their rights which enables our so-called leaders to treat them as absolute dirt.
Karachi
@USAisthe Best shame on you stupid language proves running out of arguments.
Superb article.
One question why some fake liberals are so afraid to know pak can survive on its own???????????? whyyy????????????
they are USA paid "ameeriki toutay". they are afraid because they might not get paid in $$ anymore.
Then stop begging. Don’t run around with begging bowl. See if you can survive.
You scum of the earth it is your elected 'loaders' who go begging whom you have elected. You indeed are shameless.
Even after a clear explanation, you say "See if you can survice" this is how bad the servitude has entered our blood! ( that is if you are ours)
@shameless (indian)
We donot want it and we do not get it any way. Your web of lies is getting broken.The day is not far when we will throw corrupt rules who are pets of your boss US.
Read above. Beautifully exposed your boss us scam with facts.
The language of indians show who is the real scum of the earth. No doubt 1000 of years of slavery disturbs brain
The writer has done a brilliant job by exposing usa lies and showing us the way
Pak Zindabad
Superb analysis with facts backedup with proper research. It is good to see such work coming out of the economic sector of Pakistan.
Sad to see that some people use abusive language or personal attacks instead of discussing the merits or demerits of the case presented by an obviously intelligent professional.
It maybe people with different ideology or friends across the border as they do attack on anything pro pakistani but this should be a proper exchange of views not abuse.
To the author Omer Well done mate! Keep up the good work and make Pakistanis proud. By the way you just got Pak Today a new subscriber.
I seriously disagree with the critic.
Everything is backed up by facts. Critics should do proper research. I think this is one of the best pieces to come out in a very long time on such a sensitive topic.
wah big wah Omar bhai
Just opened the forwarded link http://www.worldaffairsjournal.org/content/opinio…. of world affairs journal to find this amazing column. Have read all the columns of this writer. what i like is the no nonsense way of articulating his arguments by facts in a convincing manner.
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