Daily Times

Karachi: In a bid to dispel the widely prevailing impression of shrinking US Aid and influence in Pakistan, the Trump administration has released $350 million under the Coalition Support Fund. The central bank of Pakistan, SBP on Thursday confirmed that the country has finally receive $350 million from the US on account of the Coalition Support Fund. The country was expecting Rs 170.7 billion from USA on account of CSF in the Federal Budget 2016-17. With the transfer of $350 million the total liquid foreign reserves held by the country stood at $22,151.8 million during the week ending March 03, 2017. The central bank during the week also made payments of $62 million on account of external debt servicing, SBP said. Release of the much delayed CSF amount by US authorities at a time when Pakistan has attracted huge foreign investment under the China Pakistan Economic Corridor CPEC is of significant importance. “USA may have felt that it is losing an ally and they needed to bridge the certain gaps”, observed, senior economist, SM Arif. Though the country expects CSF from USA to support its budgetary spending which is reflected in the budgetary documents but in the current situation the impression of “desperate need” for coalition support is debilitating particularly with the launch of mega projects under CPEC and inflow of foreign funding through it. “If we look at the CSF release from economic point of view”, Arif said adding ” We will be able to fund infrastructure projects at our own besides ensuring dollar, rupee parity”. In the past the utilization of CSF has been kept out of the public eyes which mostly were utilized by discretionary manner. “Now the political government is in power and they will have to inform that how they are handling the funds”, Arif said. According to some estimates Pakistan had received around $1 billion under CSF since 2002-3 on average. Pakistan, on account of CSF, economic and military assistance, had received around 14 percent inflows from US as compared to estimated losses of $118 billion, the country has incurred in the war on terror.