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Blow to Pakistan as US decides to withdraw $300 million in aid


Date:- 03 Sep 2018


Elizabeth Roche   

Cancellation of Coalition Support Funds is part of a broader aid suspension announced by Trump in Jan

 In a blow to Pakistan, the US said that it has decided to cancel $300 million in aid to Islamabad over its perceived failure to take decisive action against terrorists and militants. This is in addition to another $500 million being withdrawn earlier this year at the behest of the US Congress, bringing the total amount to $800 million.

The withholding of the so-called Coalition Support Funds (CSF) is part of a broader suspension in aid to Pakistan, announced by US President Donald Trump in January, when he accused Islamabad of rewarding past assistance with “nothing but lies and deceit”. The Trump administration has been saying that Islamabad is granting safe haven to terrorists and insurgents waging a 17-yearold war in neighbouring Afghanistan, a charge denied by Pakistan.

The move comes ahead of an expected visit by US secretary of state Mike Pompeo and top US military officer, General Joseph Dunford, to Islamabad on 5 September. Combating militants is to be the “primary part of the discussions” in Pakistan, defence secretary James Mattis told reporters last week.

Pakistan was also considering approaching the International Monetary Fund (IMF) for a bailout package. Newly sworn in Pakistan Prime Minister Imran Khan had said that bringing the economy back on track will be his priority given that the country’s foreign exchange reserves have plummeted over the past year and Islamabad was to soon decide on whether to seek a bailout from the IMF or friendly nations such as China. During the July general polls in Pakistan and thereafter, Khan has been critical of the US presence in Afghanistan and said that he wanted “mutually beneficial” relations with Washington.

“Due to lack of Pakistani decisive actions in support of the South Asia Strategy, the remaining $300 (million) was reprogrammed,” said Pentagon spokesman lieutenant colonel Kone Faulkner. He added that Pentagon aimed to spend the $300 million on “other urgent priorities” if approved by the Congress.

Though the funds have been withheld this year, Pakistan could again be eligible next year for CSF, with US officials saying that Islamabad could win back their support if it changed its behaviour.

There was no immediate reaction to the development from India, which accuses Pakistan of harbouring, training and infiltrating insurgents to foment terrorism in Kashmir and other parts of the country. An US official told Reuters that defence secretary James Mattis had an opportunity to authorize $300 million in CSF funds if he saw concrete Pakistani action to go after insurgents, but Mattis chose not to. The thinking in the US is that militant safe havens in Pakistan have allowed Taliban-linked insurgents in Afghanistan a place to plot deadly strikes and regroup after ground offensives. Pakistan is seen as supporting the Taliban to ensure an Islamabad-friendly government in Kabul in case of conflict with India.

The Pentagon’s decision showed that the US, which has sought to change Pakistan’s approach, is increasing pressure on Islamabad. Reuters reported in August that the Trump administration has quietly started cutting scores of Pakistani officers from coveted training and educational programmes, which had been a hallmark of bilateral military relations for more than a decade.

A Pakistani official, speaking on the condition of anonymity, said he was unaware of a formal notification of the US decision on assistance, but said that one was expected by the end of September.

Pakistan has received more than $33 billion in US assistance since 2002, including more than $14 billion in CSF, a US defence department programme to reimburse allies, which have incurred costs in supporting counter-insurgency operations.

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Courtesy: The Mint: 03 Sep 2018