CIA pays millions to Pakistani intelligence

WASHINGTON – The CIA has funneled hundreds of millions of dollars to Pakistan’s intelligence service since the Sept. 11, 2001, attacks, accounting for as much as one-third of the foreign spy agency’s annual budget, current and former U.S. officials say.

The Inter-Services Intelligence agency also has collected tens of millions of dollars through a classified CIA program that pays for the capture or killing of wanted militants, a clandestine counterpart to the rewards publicly offered by the State Department, officials said.

The payments have triggered intense debate within the U.S. government, officials said, because of long-standing suspicions that the ISI continues to help Taliban extremists who undermine U.S. efforts in Afghanistan and provide sanctuary to al-Qaida members in Pakistan.

But U.S. officials have continued the funding because the ISI’s assistance is considered crucial: Almost every major terrorist plot this decade has originated in Pakistan’s tribal belt, where ISI informant networks are a primary source of intelligence.

The White House National Security Council has “this debate every year,” said a former high-ranking U.S. intelligence official involved in the discussions. Despite deep misgivings about the ISI, the official said, “there was no other game in town.”

The payments to Pakistan are authorized under a covert program initially approved by President George W. Bush and continued under President Barack Obama.

U.S. officials often tout U.S.-Pakistani intelligence cooperation. But the extent of the financial underpinnings of that relationship has never been publicly disclosed. The CIA payments are a hidden stream in a much broader financial flow; the U.S. has given Pakistan more than $15 billion over the last eight years in military and civilian aid.

Congress recently approved an extra $1 billion a year to help Pakistan stabilize its tribal belt at a time when Obama is considering whether to send tens of thousands of additional troops to Afghanistan.

The ISI has used the covert CIA money for a range of purposes, including the construction of a new headquarters in the capital, Islamabad. That project pleased CIA officials because it replaced a structure considered vulnerable to attack; it also eased fears that the U.S. money would end up in the private bank accounts of ISI officials.

In fact, CIA officials were so worried the money would be wasted that the agency’s station chief at the time, Robert Grenier, went to the head of the ISI to extract a promise that it would be put to good use.

“What we didn’t want to happen was for this group of generals in power at the time to just start putting it in their pockets or building mansions in Dubai,” said a former CIA operative who served in Islamabad.