Islamabad: The US has long suspected that much of the billions of dollars it has sent Pakistan to battle militants has been diverted to the domestic economy and other causes, such as fighting India.
Now the scope and longevity of the misuse is becoming clear: Between 2002 and 2008, while Al Qaida regrouped, only $500 million of the $6.6 billion in American aid actually made it to the Pakistani military, two army generals tell AP.

Ally trouble: A file photo of a Pakistani armoured vehicle firing at Taliban positions in the Bajur tribal region. Between 2002 and 2008, only $500 million of the $6.6 billion in US aid made it to the Pakistan military. AP
The account of the generals, who asked to remain anonymous because military rules forbid them from speaking publicly, was backed up by other retired and active generals, former bureaucrats and government ministers.
At the time of the siphoning, Pervez Musharraf, a Washington ally, served as both chief of staff and president, making it easier to divert money intended for the military to bolster his sagging image at home through economic subsidies.
“The army itself got very little,” said retired genreal Mahmud Durrani, who was Pakistan’s ambassador to the US under Musharraf. “It went to things like subsidies, which is why everything looked hunky-dory. The military was financing the war on terror out of its own budget.”
Generals and ministers say the diversion of the money hurt the military in very real ways. Helicopters critical to the battle in border regions were not available. At one point in 2007, at least 200 soldiers were trapped by insurgents in the tribal regions without a helicopter lift to rescue them.
The limited night vision equipment given to the army was taken away every three months for inventory and returned three weeks later.
Equipment was broken, and training was lacking. It was not until 2007 that money was given to the Frontier Corps, the front-line force, for training.
The details on misuse of US aid come as Washington again promises Pakistan money. Legislation to triple general aid to Pakistan cleared Congress last week. The legislation also authorizes “such sums as are necessary” for military assistance to Pakistan, upon several conditions. The conditions include certification that Pakistan is cooperating in stopping the proliferation of nuclear weapons, that Pakistan is making a sustained commitment to combating terrorist groups and that Pakistan security forces are not subverting the country’s political or judicial processes.
The US is also insisting on more accountability for reimbursing money spent. For example, Pakistan is still waiting for $1.7 billion for which it has billed the US under a Coalition Support Fund to reimburse allies for money spent on the war on terror.
But the US still can’t follow what happens to the money it doles out.
“We don’t have a mechanism for tracking the money after we have given it to them,” Pentagon spokesman Mark Wright said over telephone.