It's a staggering claim, but it was made by the country's Supreme Audit Bureau.
Recent arrests of military officials suggest that the Pakistani Army is intensifying its hunt for key officers with possible links to outlawed militant outfits such as Hizb ut-Tahrir.
In an uncharacteristically blunt move, US Adm. Mike Mullen said publicly that Pakistan had a 'longstanding relationship' with the Haqqani militant group. The US appears to be both prodding Pakistan to finally root out militants in its border region and attempting to set the parameters for Afghan peace talks.
A teen suicide bomber killed at least 31 people in northwest Pakistan Thursday, bringing to an end a lull in major strikes by the Taliban.
India-Pakistan tensions muddy US efforts in Afghanistan, where Pakistan's cooperation is needed. One key issue: Islamabad is wary of India's broadening regional role.
As Pakistan deals with the fallout from Tuesday's assassination of Punjab Governor Salman Taseer, former Afghan President Burhanuddin Rabbani met Wednesday with Pakistan's military chief to help nudge the Taliban to the negotiating table.
NATO claims the helicopter strike was on the Afghanistan side of the border, but Pakistani officials say three Pakistani troops were killed in Kurram tribal agency.
The Pakistani government strongly condemned a series of manned airstrikes on Pakistani soil, including two NATO attacks that officials say killed about 55 suspected insurgents over the weekend.
The Lahore blasts – though sectarian in nature – may raise the level of threat felt by the hundreds of international aid workers who have come to help Pakistan after its worst flooding in 80 years.
The absence of politicians from the scene of the Pakistan flood -- the country's worst in 80 years -- is raising concerns about the future of democracy in Pakistan.