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Rediff.com  » News » Pak expected to receive $2.5 bn aid from US

Pak expected to receive $2.5 bn aid from US

July 05, 2012 11:58 IST

Cash-strapped Pakistan is expected to receive $2.5 billion (about Rs 14,000 crore) as financial assistance from the United States during the current fiscal following the end of a standoff between the two sides on NATO supply routes to Afghanistan.

The disbursements, especially reimbursements from the US Coalition Support Fund for Pakistan's expenses on the war on terror, might relieve the government of pressure it is facing because of depleting foreign exchange reserves which necessitated an immediate bailout from the International Monetary Fund.

The US is expected to pay $1.5 billion to two billion during the current fiscal year from the CSF, the Dawn newspaper quoted its sources as saying. About $700 million to $1 billion is expected under the Kerry-Lugar Berman Act and Foreign Military Financing.

An unnamed official said Pakistan's claims for about $1.3 billion from the CSF had already completed a 10-stage approval and reconciliation process of the US government and only banking instructions are needed for the amount to be transferred into Pakistan's accounts.

Bills worth another $800 million to $1 billion had passed the reconciliation process and were awaiting approval because of political issues surrounding the closure of NATO supply routes.

"We are expecting disbursements to start within the current month," an official said.

Pakistan had closed the supply lines after a cross-border NATO attack killed 24 of its soldiers last year. It ended the blockade after the US apologised for the attack.

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