July 29, 2015
News
Pakistan gets $336m in CSF, foreign reserves climb to $19b
KARACHI: Pakistan on Tuesday received a total of $336.864 from the United States under the Coalition Support Fund (CSF) programme, for its ongoing role in combating a Taliban insurgency in neighbouring Afghanistan.
The State Bank of Pakistan (SBP) officials said the injection of cash, which comes as the Taliban steps up its annual summer offensive launched in late April, has helped Pakistan’s foreign exchange reserves reach a fresh high of about $19 billion.
The analysts said inflows of CSF along with expected loans from different financial institutions would bode well for external account, as balance of payment was likely to settle in green with surplus.
Regular payments to Pakistan under CSF began in 2001 when Pakistan joined the US-led coalition in Afghanistan as a front-line ally.
Pakistan provides use of its air bases and other facilities in exchange for the reimbursements. The SBP in a one-line press note said it had received a total of $336.8 million under the CSF programme, which is the first tranche of a $1.5 billion for the current fiscal year ending June 2016. Pakistan has received a total of $13 billion in CSF payments since the programme began.
The US-led NATO forces ended their combat mission in Afghanistan in December, leaving local forces to battle militants alone, but a 13,000-strong residual force remains for training and counter-terrorism operations.
The Afghan government meanwhile conducted its first face-to-face talks with Taliban cadres on July 7 in Pakistan, aimed to end the 14-year insurgency.
But despite the willingness to engage in talks, there has been no let-up in militant attacks, which are taking a heavy toll on civilians. Almost 1,000 civilians were killed in the conflict during the first four months of this year, a sharp jump from the same period last year, according to the United Nations.
Courtesy www.dailytimes.com.pk