The issue about the future of CSF, according to a defence source, was discussed at the 23rd Defence Consultative Group Meeting (DCG)-Interim Progress Review (IPR) held at the defence ministry today. Principal Deputy Secretary of Defence Ms Kelly Magsamen led the US delegation comprising officials of the defence and state departments.
Under the CSF arrangement, the US reimbursed Pakistan for operations and maintenance costs incurred in direct support of its operations in Afghanistan. Since 2001, the US has reimbursed $13 billion to Pakistan, which is the largest recipient of the fund.
The arrangement was supposed to end with the completion of the drawdown in December 2014, but the US government through legislation extended the programme for another year. The extended programme, which came with extra conditions, allowed reimbursement of up to $1bn.
At the DCG meeting, Pakistan sought its further extension due to continuing challenges. Besides helping in meeting the security expenses, the government has been using CSF inflows to narrow down current account deficit.
A source said the US unwillingness to continue the programme was because of its changing priorities as it appeared more focused on the challenges posed by Middle Eastern terror group Daesh.