U.S. Aid to Musharraf is Largely Untraceable Cash Transfers

[nhboy]

"After Pervez Musharraf declared martial law this weekend, Condoleezza Rice vowed to review U.S. assistance to Pakistan, one of the largest foreign recipients of American aid. Musharraf, of course, has been a crucial American ally since the start of the Afghanistan war in 2001, and the U.S. has rewarded him ever since with over $10 billion in civilian and (mostly) military largesse. But, perhaps unsure whether Musharraf's days might in fact be numbered, Rice contended that the explosion of money to Islamabad over the past seven years was "not to Musharraf, but to a Pakistan you could argue was making significant strides on a number of fronts."

In fact, however, a considerable amount of the money the U.S. gives to Pakistan is administered not through U.S. agencies or joint U.S.-Pakistani programs. Instead, the U.S. gives Musharraf's government about $200 million annually and his military $100 million monthly in the form of direct cash transfers. Once that money leaves the U.S. Treasury, Musharraf can do with it whatever he wants. He needs only promise in a secret annual meeting that he'll use it to invest in the Pakistani people. And whatever happens as the result of Rice's review, few Pakistan watchers expect the cash transfers to end."

TPMmuckraker | Talking Points Memo | U.S. Aid to Musharraf is Largely Untraceable Cash Transfers