US asks Pakistan to make full payment for F-16 fighter jets, no subsidy

Tuesday, May 3, 2016,11:40 IST By metrovaartha A A A

Washington | The US has asked Pakistan to put forward its national funds to buy eight F-16 fighter jets after some top American Senators put a hold on the use of tax payers’ money to partially finance them, a move that may create a hurdle for the deal.

While Congress has approved the sale, key members have made clear that they object to using FMF (foreign military financing) to support it. Given Congressional objections, we have told the Pakistanis that they should put forward national funds for that purpose, US State Department spokesman John Kirby told reporters at his daily news conference Monday. Kirby, however, did not say when this decision was taken and when was it communicated to Pakistan.

On February 11, the State Department had informed the Congress about its determination for selling eight F-16s to Pakistan at an estimated cost of $700 million. The move was opposed by the Indian government which summoned the US Ambassador to India, Richard Verma, to lodge its protest. US top American lawmakers led by Senator Bob Corker, Chairman of the powerful Senate Foreign Relations Committee, put a hold on the sale arguing that it would not let the Obama administration use tax payers’ money for sale of the fighter jets to Pakistan given that Islamabad was not taking enough action against terrorist organisations, in particular the Haqqani network and there was continued existence of terrorist safe havens inside its territory.

Last week, during a Congressional hearing, top American lawmakers openly told the Obama administration that they feared Pakistan would be using these F-16 fighter jets against India and not against terrorists. However, both the Special Representative for Afghanistan and Pakistan and the Pakistan government insisted that F-16 is an important tool in the fight against terrorism and urged the Congress to remove the hold. The lawmakers stood their ground and told the Obama administration that it will not till the time Pakistan takes tangible action against the Haqqani network. Now Pakistan has time till May end to avail the American offer to procure F-16s. Sources here told PTI that the May deadline for Pakistan to respond to the new development from the US is based on offer validity and (Lockheed’s) production process point of view. Any delay in the acceptance of the offer would result in increase in cost of F-16s. However, speaking on condition of anonymity, a senior Pakistani official told PTI that Pakistan is unlikely to buy F-16s at its full price as being told by the United States now.

Earlier, Pakistan was to pay only $270 million for the jets. The US offer of eight F-16s, officials said, might still be there in paper, but it might go in for a long pause and price escalation if Pakistan decides against buying it, sources said.

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