Pakistan has renewed threats to sue the US Government for the return of $656 million paid for 28 undelivered Lockheed Martin F-16s.

According to local reports, the Pakistani prime minister has approved plans to file a lawsuit in the USA within "the next few weeks". The US Department of State says that it has not been informed of any legal action.

The US Congress voted in the early 1990s to embargo delivery of the F-16s, alleging that Pakistan was developing nuclear weapons. The Pakistanis had already made substantial progress payments and are demanding the return of the money, or delivery of the aircraft.

US President Bill Clinton has promised to find a solution, but is in a tricky situation. Pakistan's money has been paid to Lockheed Martin and its suppliers and cannot be returned, and the Congressional Pressler Amendment still blocks delivery of the aircraft. US efforts to raise the money by selling the F-16s to a third party failed.

The State Department admits that legislation to appropriate money with which to refund Pakistan, or to remove the embargo, has yet to be drawn up for presentation to Congress.

Local reports suggest that Pakistan is reluctant to go to court because Clinton is scheduled to visit the country in February or March, and the Islamabad Government is still hoping to resolve the dispute.

Source: Flight International