The short answer is: No one quite seems to know. The US reimburses Pakistan for costs associated with the numerous military operations launched following US goading.
But the Defense Department has failed to obtain enough information to judge whether $2 billion in claims were valid, according to the government accountability office. Their 2008 report found evidence of double billing or repayment for unrelated or nonexistent efforts, including $200 million for radar upgrades – even though militants have no air force that would require such radar.
Former president Pervez Musharraf later confirmed suspicions that aid had been diverted to defend against India. “Whoever wishes to be angry, let them be angry,” he said in 2009. “The Americans should know … that we won’t compromise our security, and will use the equipment everywhere.”
The US has gotten tougher on reimbursements, rejecting 44 percent in 2009, compared with1.6 percent in 2005, according to The Wall Street Journal. About $300 million of the suspended $800 million comes from this pool of reimbursements.
“Reimbursement claims are reviewed carefully and decisions are based on a combination of agreed formulas,” says a US official in Islamabad, via e-mail. “However, we do not control what the government of Pakistan does with reimbursement funds that go into the state bank.”
