Latest News

    Business & Economics

    Pakistan, US ink MoU on NATO supplies

    ISLAMABAD (PAN): Pakistan and the United States on Tuesday signed a memorandum of understanding (MoU) on transit of cargo for NATO-led troops stationed in neighbouring Afghanistan.

    US Deputy Ambassador Richard Hoagland and Additional Secretary Defence Rear Admiral Farrukh Ahmed signed the agreement on behalf of their governments in the garrison town of Rawalpindi.

    Replacing the existing arrangement for NATO supplies through Pakistani land routes, which is reportedly based on a verbal understanding, the MoU runs through 2015 and can be renewed subsequently.

    In line with the MoU, the United States will release id="mce_marker".1 billion under the Coalition Support Fund to reimburse Pakistan for fighting militants on its territory.

    After the signing ceremony, Hoagland praised the MoU as a "demonstration of increased transparency and openness" between the two governments.

    The landmark deal would contribute to regional stability, hoped Pakistan’s Defence Secretary Asif Yasin Malik, who attended the ceremony. The agreement allows Pakistan to bar transportation of lethal equipment and cargo inspections.

    Under the deal drafted in light of the UN Charter and recommendations of parliament, supplies of ammunition are not permitted but weapons could be transported for the Afghan National Army.