5 May 2010
The State Bank of Pakistan (SBP) confirmed yesterday that it had received $468 million from the United States in compensation for some of its costs in battling militancy.“We received $468 million last night,” said Syed Wasimuddin, chief spokesman for the State Bank of Pakistan.
The US embassy in Islamabad explained yesterday that it had released $656 million to Pakistan as part of its coalition support fund (CSF) to compensate allies that have incurred costs from supporting counter- -terrorist and counter-insurgency activities. $188 million was transferred last week and another $468 million was transferred on Monday.
These payments have come at a critical time as Pakistan’s liquidity remains severely strained as it awaits the fifth tranche of the $11.3 billion loan from the IMF. More recently, the IMF has been urging Pakistan to increase electricity tariffs and implement a value-added tax.
