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Pakistan has Given Reverse Aid to the US Worth $5.1 Billion Since 2006

October 28, 2009

Saad Mohammad, Economistan

Much hue and cry has been made out of the Aid US has given to Pakistan over the years. However, all this Aid amounts to pittance when we realize that US has given Pakistan over a period of 60 years only $8.9 billion dollars in economic assistance. This amount is less than even the remittances that Pakistanis would send this year which would amount to a little more than $9 billion dollars. The military aid that the US has given to Pakistan over the past 62 years amounts to $14.7 billion, which includes $5 billion dollars which were given to Pakistan during the Zia years to drive the Soviets back from Afghanistan thus signaling the end of the Cold War. In short, Pakistan won the war for the US for just $5 billion which speaks volumes about the efficiency and determination of Pakistan Armed Forces.

This $5 billion not only covered the cost of arming and training Afghan fighters and the supply of stinger missiles which were instrumental in bringing down Russian air power but also helicopters and other weapons and fuel needed to defeat the Soviets. It was a war in which many Pakistani fighter pilots also laid down their lives in an effort to drive the Russians away from Afghanistan.


The US basically used Pakistan to win its war against Russia and dubbed the Foreign Direct Investment in this Cold War as US Aid. Paying another country to fight its own war should not be called as Aid but wages for fighting the war. Again during so the called “War on Terror”, the US has enrolled its old and forgotten partner to do all the work for it and given Pakistan a little more than $ 9 billion as Coalition Support Funds (or “Military Aid”) to win the war.

A major portion of these Coalition Support Funds however, also includes the cost of fuel that Pakistan supplies to the US forces based in Afghanistan. In effect the US calls the money it gives to Pakistan for the fuel that the US itself uses in Afghanistan as “Military Aid”. There are also reports that Pakistan is supplying the fuel to the US below cost. The Coalition Support Funds and Security Assistance almost entirely are composed of fuel plus the military hardware costs that the US has supplied to Pakistan. Given below is a complete breakdown of the so called “Military Aid” since 911 to Pakistan,

“Military Aid” to Pakistan since 911
Coalition Support Funds $5.6 b
Security Assistance $1.8 b
Budget Support $1.6 b
Development $0.9 b

The breakdown of the total aid given to Pakistan by the US is as follows,

Total US Aid to Pakistan in past 62 years($ millions)
Military Economic
1950-1964 700 2500
1965-1979 26 2550
1979-1990 5000 0
1991-2000 5 429
2001-2009 9000 3500
Total $14.731 billion $8.979 billion

Ken Stier writes in an article on aid to Pakistan writes,

“Currently, 70 to 80 cents of every dollar allocated in aid comes back to the U.S. instead of staying in the country it is meant to benefit because of USAID’s dependence on contractors.”

The US is using US companies and contractors to channel this so called “Aid” which is used to support US companies presently operating in Pakistan against Chinese firms along with the construction of infrastructure projects like the building and expansion of the $1 billion dollar US Embassy in Pakistan. Under the same token if Pakistan spends some money from its exchequer to build part of its embassy in the US, would that also be termed as Pakistan’s aid to the US?  or for that matter if Pakistan purchased any military hardware from the US would it be termed as Pakistan’s aid to the US? Under the current US definition of “aid” it would. If so then it would not be wrong to say that Pakistan has given the US aid worth $5.1 billion since 2006 because of the money it spent for the purchase of F-16s from the US. Well the logic behind the Kerry-Lugar bill is the same. This so called aid is not really aid at all instead it is US Foreign Direct Investment in Pakistan to accomplish its nefarious designs such as expansion of US military infrastructure in Pakistan through use of private military contractors and blacklisted companies like Black Water and stationing of US marines and hardware in Pakistan through overt and covert means.

The funny thing is that this so called US Aid is spread over many years comes with harsh conditions. The US just playing with terminologies and fooling the people of Pakistan into thinking that the money US is using in supporting US companies in Pakistan and building its own embassy is aid. It is about time for Pakistan to wake up and aggressively address the issues of the sovereignty in Pakistan and excessive US interference in Pakistan’s internal affairs in the garb of this so called aid. Pakistan would also be well served to reject this so called aid and closely scrutinize all of this “Foreign Direct Investment” from the US which it calls aid to Pakistan. Pakistan should require the US to give a detailed list of each and every item that is purchased through this money in Pakistan and which US companies, contractors and concerns are the beneficiaries of the so called “aid”.

Pakistan’s Aid to the US since 2006
Item 1: 36 New F-16 Block 50/52s – $3 billion
Item 2: Weapons for the New F-16s – $650 Million
Item 3: F-16A/B Mid-Life Update Modification Kits – $1.3 billion
Item 4: F-16A/B Engine Modifications & UP/STAR – $151 Million

Thanks to the billions of dollars that overseas Pakistanis have sent to Pakistan just this year($ 9 billion), the current account deficit of the current financial year for Pakistan has reduced to a mere $462 million dollars which bodes well for Pakistan. Pakistan’s stock market is also in recovery mode and rose by 2.4% to 9,374 points since Sept 24. It is about time Pakistan reconsidered its partnership with the US and called the US military aid or foreign direct investment in Pakistan “US military expense” and the US economic assistance to Pakistan over the last 62 years of $ 8.9 billion dollars what it is, a “Pittance”.

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19 comments

  1. It took five decades for the Pakistani accountants to realize that billions of dollars in US aid means nothing to Pakistan ?

    The author of this article deserves a Nobel prize………… !


    • and ur point is?


  2. Very funny article.

    Why don’t you stop begging then?

    http:/pakiterroristan.wordpress.com


    • why dont u stop being an asshole?


  3. Now pakis are getting caught everywhere,. This is today’s news:

    http://pakiterroristan.wordpress.com/2009/10/27/pakistanis-arrested-in-the-us-for-plotting-terror-attacks/


    • I wonder why ur @$$ being kicked in Australia??


      • cuz they stink


  4. i have been blaming various people at different levels in present and previous governments of grave crimes during political discussions with friends and many others and that only on the basis of what news i have read and the imagination, possibly for the sake of showing that i know politics as well. i have realised all this is not permitted and we only burden our own shoulders with sins, so i publicly apologise to everyone who i may have adversely talked about. all kindly forgive me. may ALLAH make us all follow the correct path and true teachings of islam.

    zahir shaikh


  5. Pakiterrorism, why dont you F$#% off to your own little delusional world where black is white and war crimes by ur beloved Indian state are encouraged as long as they are committed against minorities. What would you know about economic analysis? ur too busy spewing shit around here and everywhere else.


    • Its high time .. Pakistanis should do away with its stance of Self-proclaimed saviour of Muslims in the world .. and think about themselves.. No Muslim nation or rather world musilms are looking at this nation .. as their protector .. Pakistanis have worried enough about muslims in palastine, Kashmir, Chechenya, Afganistan etc.. now its high time to keep your own home safe ..


      • @Canadian

        When the hell did we say we are the ‘savior’ of Muslims??

        We always say ‘all’ Muslims should be united to counter the propaganda against all Muslims, we never say ‘we are going to come and save everyone and get everyone united’.

        The Holy Quran states ‘If a person saves a human being that means he saved the whole of mankind and if one kills a person that means he has killed the whole of mankind.’ We not only feel for the Muslims but we even feel for the innocent non-Muslims being killed.

        Ever heard lines by the famous Poet Saadi-
        Of One Essence is the Human Race,
        Thusly has Creation put the Base.
        One Limb impacted is sufficient,
        For all Others to feel the Mace.
        The Unconcern’d with Others’ Plight,
        Are but Brutes with Human Face.

        In the end it doesn’t matter if other people are with us or not what really matters is if Allah swt is with us or not. And the following verse is enough for me -(3:186) (Believers!) You will certainly be put to test in respect of your properties and lives, and you will certainly hear many hurtful things from those who were granted the Book before you and those who have associated others with Allah in His divinity. If you remain patient and God-fearing this indeed is a matter of great resolution.


  6. Its good to know that a third-world country has finally given aid to a super power. way to go pakistan (lol).

    A History of Clandestine Contacts between Pakistan & Israel:
    http://next-world-war.blogspot.com/2009/10/pakistan-and-israel.html


  7. Wow great article!!and i thought we needed the klb aid desperately!ofcourse not the conditions,impressive research!i must say this article is enough to shut any barking dog that defends america,american aid and the ridiculous kerry lugar bill


  8. i never really got it until now, how does the worlds largest debtor nation give aid to anybody. so this is how.


  9. Following is the actual link for this article complete with clickable references,

    http://www.economistan.com/articles/10098.html


  10. […] has Given Reverse Aid to the US Worth $5.1 Billion Since 2006 – Today, 05:39 AM Pakistan has Given Reverse Aid to the US Worth $5.1 Billion Since 2006 October 28, 2009 Saad Mohammad, Economistan Much hue and cry has been made out of the Aid US has […]


  11. Hahahaha…its amazing! The first ones to comment on this and every other Pakistani forum, are usually Indians!

    Inferiority complex struck Indians!


  12. i am really surprised at ur findings…why dont u replace shaukat tarin as the finance minister…may b ull earn a noble FINANCIAL prize…how can u compare the aid given in the 1950s n 1960s with what we are getting today…u should know that the value of rupees at that time was less than 10 rupees n now its 83 as compared to the dollar…the at that time which according to u was a little more than $ 3 billion is like more than $ 15 billion in our present time…secondly u mentioned the f- 16s…how do u expect the PAF to counter indian SU 30s with the Chinese fighter jets…or r u trying to say that we should try our luck with the Chinese ( still to be proven) weapons…the item 4 that u mentioned its worth is actually $ 230 million n it was supposed to be used against the terrorists by buying various weaponry..the list is long…but the funds were diverted to the PAF…n so the money remained in the US cuz the upgrades were done i the US…LAST BUT NOT THE LEAST U SHOULD KNOW THAT THAT CURRENT TRADE IMBALANCE WITH THE US IS IN FAVOR OF PAKISTAN N IS WORTH BILLIONS OF DOLLARS…U MAKE ME LAUGH AT UR FINDINGS….


  13. also u mentioned that 70 % of money goes back to the US ….in swat the aid that was received from the US was monitored by 202 people of which only two were Americans and the rest were Pakistanis…which is the model under consideration now…plz don’t assume things which have still to be finalized…



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