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USA removes subsidies from F-16 deal with Pakistan

The US asked Pakistan to “put forward” its “national funds” to buy F-16s after some top Senators put a hold on the use of American tax payers’ money to partially finance them.

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It’s, in fact, been five years since Osama Bin Laden was shot to death at his hideout in Abbottabad, Pakistan in a covert operation conducted by the US Navy’s Seal Team Six.

The congressional opposition means that funds from the U.S. government’s Foreign Military Financing allocation can not be used as planned to purchase the aircraft, U.S. State Department spokesman John Kirby said on May 2.

Topics concerning reduction in U.S. defence and civilian assistance to Pakistan and Congressional hold on some already approved funds were also deliberated upon, a statement said. The move was opposed by the Indian government as it summoned the US Ambassador to India, Richard Verma, to lodge its protest.

Pakistani F-16 fighter jets fly past during the Pakistan Day military parade in Islamabad, Pakistan, March 23, 2016. Pakistan had shown “utmost sincerity” in taking action against all terror outfits in the country, including the Haqqani network, in order to improve its relationship with India and contribute to the Afghan peace process, he said.

Syed Tariq Fatemi, Special Assistant to Prime Minister on Foreign Affairs, conveyed the complaint to a two-member professional staff delegation of the House Foreign Affairs Committee of the US Congress in Islamabad. The lawmakers stood their ground and told the Obama administration that it will not remove the hold till Pakistan takes tangible action against the Haqqani network.

Sources here told PTI that the May deadline for Pakistan to respond to the new development from the U.S. is based on “offer validity and (Lockheed’s) production process” point of view.

The US government said in February it had approved the sale to Pakistan of up to eight F-16 fighter jets built by Lockheed Martin Corp LMT.N, as well as radar and other equipment in a deal valued at $699 million.

Any delay in the acceptance of the offer, would result in increase in cost of F-16s.

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As a result, Pakistan would have to foot the complete bill of $700 million for the eight fighter jets as opposed to just $270m as per the earlier arrangement, while the United States would grant the remaining $430m.

US asks Pak to make full payment for F-16 no subsidy