US to divert $230m of counter-terrorism funds to help upgrade Pakistan’s F-16 fighters; Outbreak of violence in Swat; Hike in fuel prices; Indo-Pak dialogue begins in New Delhi
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    • The United States will allocate $230m of counter-terrorism funds to facilitate the upgrading of Pakistan’s F-16 fighter jets. The acting spokesperson of the US State Department, Gonzalo Gallegos made an announcement to this effect in Washington on July 24. He also stated that the US did not inform India before taking the decision on the diversion of the aforementioned funds1.

    The fifth round of Indo-Pak Composite Dialogue at the Foreign Secretary-level began on
    July 21 in New Delhi. Reports quoted Foreign Secretary Shivshankar Menon as stating that the talks were held in a ‘stressed’ atmosphere due to the attack on the India Embassy in Kabul earlier in the month2.

    There was outbreak of violence in the Swat region, including damage to local schools and markets, due to the breakdown of the peace accord on July 25. The security forces on their part claimed to have arrested some militants. Meanwhile, members of the ruling coalition registered their opposition on the use of force in FATA during a meeting with the Chief of Army Staff (COAS) Gen. Kayani in Islamabad on July 23. The COAS was reportedly giving a briefing to the leaders of these political parties on the prevailing security situation in the tribal areas3.

    In other developments, the Pakistan’s Oil and Gas Regulatory Authority (OGRA) hiked petrol prices by Rs. 11 per liter and that of diesel by Rs. 9.5 per litre4. These prices came into effect on July 21.

    The government also placed the intelligence agencies - the ISI and the IB under the Interior ministry in order to have a better control on their activities5.

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