By KUNA,
Islamabad : The US Secretary of State, Hillary Clinton, telephoned Pakistani Prime Minister Syed Yousuf Raza Gilani where they discussed bilateral relations amid reports that the US has held back the last tranche of Coalition Support Fund (CSF).
A brief official press statement on Tuesday said that the conversation took place Monday night. “Both the leaders exchanged views on US-Pakistan bilateral relations and the upcoming trilateral core group meeting between Pakistan, Afghanistan and United States, starting in Kabul on Tuesday”, said the statement.
The latest contact came as reports have said that the US has delayed the release of funds meant to fight militancy only three days before the current financial year.
Also, the political circles have been indicating since Abbottabad Operation that killed Osama Bin Laden that the US may cut off Pakistan’s civil and military aid.
Pakistan was expecting USD 500 million in the last tranche of the CSF, which was set up by the US Congress after the 9/11 attacks to reimburse allies for costs in supporting the US-led war on militancy.
On April 25, Finance Minister Abdul Hafeez Shaikh had announced after a visit to the US that the Obama administration was “firmly committed” to releasing at least USD 500 to USD 600 million by June 30. Citing a finance ministry official, daily Express Tribune said that the US Congress is yet to clear the transaction.
This is the second major setback to Pakistan’s besieged economic managers who seem to be struggling to keep the budget deficit below six percent of total Gross Domestic Product (GDP).
Earlier this week, government efforts to issue exchangeable bonds worth USD 500 million went in vain as international investors advised Islamabad to wait for a suitable time. Following these two events, budget deficit can now increase by 0.4 percent of GDP.