Ties in turmoil, US holds up Pak payments

The US has held up a reimbursement of $400 million spent by Pakistan on the war against terror due to the strained relationship between the two countries, adding to the worries of financial managers in Islamabad, a media report said on Monday.

The US has held up a reimbursement of $400 million spent by Pakistan on the war against terror due to the strained relationship between the two countries, adding to the worries of financial managers in Islamabad, a media report said on Monday.

HT Image

The US Congress is yet to “notify” the reimbursement of $400 million from the Coalition Support Fund (CSF) and Pakistan is unlikely to receive the payment by June 30, when the current fiscal year will end.

The delay will contribute to a surge in the fiscal deficit by 0.2%, taking it to 7.5% of GDP for the current financial year.

The government’s financing requirement will touch Rs 1,545 billion even if all tax and non-tax targets are met in accordance with revised projections.