Permanent cut in US aid to Pakistan should trigger Islamabad-Rawalpindi rethink on terror

US government last week announced a permanent cut of $300 million in aid to Pakistan. This announcement came just ahead of US Secretary of State Mike Pompeo’s visit to the country and sends an unambiguous signal that America is no longer prepared to tolerate duplicity in fighting terrorism. The US cited the lack of decisive action in support of its anti-terror strategy as the reason for the cut in aid. The timing could not have been worse. Pakistan’s macroeconomic indicators are worsening and it will need help from International Monetary Fund, where US has a decisive say.

Pakistan’s use of terrorism as a strategic weapon has taken a toll on its economy. Frequent macroeconomic crises are one way this economic cost has shown up. Once again, the country’s economic indicators such as fiscal deficit and current account deficit are worsening. However, on this occasion a part of the problem is the China-Pakistan Economic Corridor (CPEC) which has stressed the country’s economy through loan repayments and profit repatriation. Pakistan’s strategic choices have undermined its society and economy, pushing it towards becoming a client state of China.

America is now no longer mincing words in dealing with Pakistan. This should catalyse a rethink from the Pakistani army and Imran Khan, the new prime minister. There is no way to change the situation without seeking a peace dividend in the form of cordial ties with India. The only way to realise such a dividend is to stop using terror as a strategic tool. The US wants Pakistan not to be selective in dealing with terrorists. Pakistan’s establishment should heed this advice as its current path will lead to greater isolation and recurring economic crises.

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Courtesy: Times of India: 04 Sep 2018