Pakistan seeks resumption of military aid as US pushes for progress on IMF reforms

In this file photo, taken on March 23, 2022, Pakistan's Army Special Service Group (SSG) commandos march during the Pakistan Day parade in Islamabad. (Photo courtesy: AFP/File)
Short Url
Updated 28 April 2023
Follow

Pakistan seeks resumption of military aid as US pushes for progress on IMF reforms

  • Pakistan military’s assistance was suspended by the Trump administration amid tensions over situation in Afghanistan
  • A top State Department official recognizes the IMF reforms are ‘not easy’ but calls them crucial for Pakistan’s economy

ISLAMABAD: Pakistan’s top diplomat in Washington on Thursday urged the United States to restore military assistance to his country as a senior US official encouraged the government in Islamabad to work with the International Monitory Fund (IMF) by implementing necessary economic reforms.

Pakistan’s military assistance was suspended by the Trump administration nearly five years ago after the former US president accused the South Asian country of “lies and deceit” in one of his Twitter posts, adding that his country had paid over $33 billion without getting enough cooperation from Pakistan against the Taliban insurgents in Afghanistan.

A US State Department spokesperson later announced the US was not entirely ending its military assistance but adopting an “issue-based approach” and would only release money when necessary.




In this screengrab, taken from Wilson Center's official YouTube video on April 28, 2023, Pakistan's Ambassador to the United States Masood Khan addresses a talk on "The Future of US-Pakistan Relations" at the Woodrow Wilson Center in Washington DC on April 27, 2023. (Courtesy: YouTube/WoodrowWilsonCenter)

Pakistan’s envoy to Washington, Masood Khan, took up the issue while addressing a seminar on the future of US-Pakistan relations at the Wilson Center think tank. He said that Foreign Minister Bilawal Bhutto-Zardari was scheduled to attend the Shanghai Cooperation Organization conference in Goa next month, adding that his country equally valued US encouragement to India and Pakistan to constructively engage with each other.

“Beyond that the United States could act as the catalyst to help resolve the Jammu and Kashmir dispute which has kept the region on the brink of war,” he told the gathering. “The United States could also revive its role for strategic stability in South Asia because we believe the policy of imbalance and disequilibrium is fraught with serious perils. In that context, it is important that the United States restores, for Pakistan, foreign military financing and foreign military sales which was suspended by the previous administration.”

 

 

US Principal Deputy Assistant Secretary of State for South and Central Asia Elizabeth Horst also told the participants of the seminar that Islamabad should move ahead on stalled reforms sought by the IMF while promising technical assistance to Pakistan.

“The reform(s) that Pakistan and the IMF agreed to are not easy,” she said, “but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow Pakistan’s economy.”

“The United States is going to continue to support Pakistan through technical engagements and assistance, particularly when it comes to encouraging Pakistan to enact policies that promote an open and fair and transparent business climate,” she added.

Pakistan signed a $6.5 billion bailout package with the IMF in 2019 but less than half of it has been released as the country could not manage to meet some tough reform conditions.

Pakistan earlier this month announced a boost of $1.3 billion from two close partners, China and the United Arab Emirates, while continuing its engagement with the international lending agency.

With additional input from AFP


Two Pakistani men indicted in $10 million Medicare fraud scheme in Chicago

Updated 12 February 2026
Follow

Two Pakistani men indicted in $10 million Medicare fraud scheme in Chicago

  • Prosecutors say defendants billed Medicare and private insurers for nonexistent services
  • Authorities say millions of dollars in proceeds were laundered and transferred to Pakistan

ISLAMABAD: Two Pakistani nationals have been indicted in Chicago for allegedly participating in a $10 million health care fraud scheme that targeted Medicare and private insurers, the US Justice Department said on Thursday.

A federal grand jury charged Burhan Mirza, 31, who resided in Pakistan, and Kashif Iqbal, 48, who lived in Texas, with submitting fraudulent claims for medical services and equipment that were never provided, according to an indictment filed in the US District Court for the Northern District of Illinois.

Medicare is the US federal health insurance program primarily serving Americans aged 65 and older, as well as certain younger people with disabilities.

“Rooting out fraud is a priority for this Justice Department, and these defendants allegedly billed millions of dollars from Medicare and laundered the proceeds to Pakistan,” Deputy Attorney General Todd Blanche said in a statement.

“These alleged criminals stole from a program designed to provide health care benefits to American seniors and the disabled, not line the pockets of foreign fraudsters,” he added. “We will not tolerate these schemes that divert taxpayer dollars to criminals.”

Prosecutors said that in 2023 and 2024, the defendants and their alleged co-conspirators used nominee-owned laboratories and durable medical equipment providers to bill Medicare and private health benefit programs for nonexistent services.

According to the indictment, Mirza obtained identifying information of individuals, providers and insurers without their knowledge and used it to support fraudulent claims submitted on behalf of shell companies. Iqbal was allegedly linked to several durable medical equipment providers that filed false claims and is accused of laundering proceeds and coordinating transfers of funds to Pakistan.

Mirza faces 12 counts of health care fraud and five counts of money laundering. Iqbal is charged with 12 counts of health care fraud, six counts of money laundering and one count of making a false statement to US law enforcement. Arraignments have not yet been scheduled.

Three additional defendants, including an Indian, previously charged in the investigation, have pleaded guilty to federal health care fraud charges and are awaiting sentencing.

An indictment contains allegations, and the defendants are presumed innocent unless proven guilty in court.