Pakistan's War On Terror Hits Roadblock

This story was written by CBS News' Farhan Bokhari in Islamabad.

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Pakistan's powerful, nuclear-armed military decided to halt construction of its ambitious new headquarters project in the nation's capital Tuesday, indicating the severity of the economic crisis.

Analysts said it was too early to say if the cuts surrounding the highly touted and symbolically prominent project would creep into spending for the war on terror that is central to U.S. security interests in the region.

In a brief statement announcing the suspension of the project, the army said, "Being cognizant of the financial crunch being faced by Pakistan, the Chief of Army Staff (COAS) has decided to suspend building of New GHQ (General Headquarters) at Islamabad. The Army shares the nation's quest for economic stability through a spirit of sacrifice."

Western defense analysts and military experts said the army's decision reflected the increasing intensity of a worsening economic crisis surrounding Pakistan. With just US$4 billion in liquid foreign currency reserves at the central bank, Pakistan only has the ability to finance imports until the end of November, unless it secures up to US$5 billion in assistance led by the International Monetary Fund (IMF), and restores badly battered confidence.

Negotiations between Pakistan's finance ministry officials and IMF economists have taken place in Dubai since early last week. The IMF declined Pakistan's request to send its team members to Islamabad, citing security concerns following the Sept. 20 bombing of the Marriott hotel - an important landmark for the capital city of the south Asian country.

"I think the military is probably catching up with the public's mood and now realizes that it has to be seen making big sacrifices," said Hasan Askari Rizvi, an expert on the Pakistani military. "At a time when ordinary Pakistanis are being forced to consider belt tightening measures, the military probably wants to be seen joining the spirit of sacrifice."

A senior Western defense official based in Islamabad speaking to CBS News on condition of anonymity said it was too early to say if the cuts would in any way curb the military's spending on up to 150,000 troops deployed along the border with Afghanistan. The U.S. has paid for the deployment of those troops for the past five years, though Pakistani officials insist they are coming under increasing pressure to pay for a range of urgently required new equipment to equip their soldiers to often fight invisible terrorists as their main enemy.

But the Western defense official said worsening economic conditions could provoke domestic unrest and force the military into deployments to tackle security conditions, should there be large-scale public riots. "It is not the immediate challenge of what happens to deployments on the border. It is the bigger question of how far the Pakistani military remains detached from an emerging economic crisis," the official told CBS News.

An Arab diplomat based in Islamabad who also spoke to CBS News on condition of anonymity said the military's decision indicated mounting economic pressure beginning to take its toll on the country's rulers. "For very long, the military has been the ultimate sacred cow. In adverse times, their expenditures have been protected. Are we now seeing them coming under the pressure of cuts which shows that the pressures are really intense?" he said adding, "worsening economic instability could undermine political stability and force Pakistan to consider a range of issues including the deployments to deal with the war on terror."

[samsel3]

The US needs to get out of Afghanistan. It is over. Iran, Pakistan & India have signed an agreement for the IPI Pipeline which circumvents Cheney s Big Pipe Dream.

Former Pakistani President Musharif was protecting a US led consortium for the TAPI Caspian Sea Pipeline which will supply Southeast Asian markets. Additionaly, 1.6 billion barrels of oil,in the Afghan-Tajik Basin, and 15.7 trillion cubic feet of natural gas, in the Amu Darya Basin will be exploited.
The Taliban reneged on an agreement with Big Oil & Gas before the invasion holding out for a larger share of pipeline tariffs for their people. The US decided a regime change was a better choice.
Taliban leader Mullah Omar said: "There are thousands of security forces ... and it is clear that they are criminal, thieves, and the people can not trust the security forces at all,"
February 12, 1998 John J. Maresca vp of UNOCAL oil appeared before a House sub committee. The purpose of the meeting was to gain support for exploitation of oil & natural gas resources, for the rights purchased by BIG OIL in the Caspian Sea area.

In his testimony he stated, "The key question is how the energy resources of Central Asia can be made available to nearby Asian markets ".

The exploitation option stated : "One obvious route south would cross Iran, but this is foreclosed by American companies because of U.S. sanctions (with Iran ) . The only other possible route is across Afghanistan,

[mildbrew]

why dont the 60 Islamic nations get together and wipe your a$$ off the planet first? I think the world would see real peace then.

[winnerindia]

World needs to get rid of islam.
if that means nuking the entire
middle east, so be it. people when
will you understand ? it is us or
them. i''''d rather kill than be a
victim myself. If the progressive
world does not act decisively, we
could be in for a nightmare...
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Posted by djsp00 at 02:37 PM : Oct 28, 2008


Yes, but how we will convince China, russia, India and the EU who run their businesses in the Middle East?