US Delays Payments to Pakistan for Military Service

Reimbursement Bill Hasn't Been Paid Since May 2008

While the cost of the American war in Afghanistan is bound to surge as the number of troops do, an often overlooked expense is the monthly stipend provided to the Pakistani government for its own military aid. That expense has been deferred, however, in that the US hasn’t paid them in nine months.

For the Pakistani government, nearly bankrupt and facing a growing insurgency fueled by the 2001 American invasion of Afghanistan, the $150 million a month military bill may not be a cureall, but receiving the $1.35 billion they are currently owed would no doubt be a great help.

Shaukat Tarin, the financial adviser for the Pakistani prime minister, says that they had negotiated for months the approval of a $1 billion payment, but they still haven’t seen any of it. This is only one aspect of the overall funding provided to the Pakistani government, but all the aid combined is nothing compared to the money lost as, according to Tarin, “our investments have been dried up and imports and exports affected.”

Author: Jason Ditz

Jason Ditz is Senior Editor for He has 20 years of experience in foreign policy research and his work has appeared in The American Conservative, Responsible Statecraft, Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times, and the Detroit Free Press.