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Yet another jolt: US cuts USD 440 million financial aid to cash-strapped Pakistan

Earlier the aid stood at nearly USD 4.5 billion. Following the cut, the aid will come down to USD 4.1 billion.

India TV News Desk India TV News Desk
Washington Updated on: August 17, 2019 13:09 IST
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Image Source : AP IMAGES

US cuts USD 440 million financial aid to cash-strapped Pakistan

The United States has yet again decided to slash the financial aid to Pakistan by nearly USD 440 million, bringing down its commitment to just USD 4.1 billion which is slightly over half of the total amount that Washington had promised to give nine years ago.

Earlier the aid stood at nearly USD 4.5 billion. Following the cut, the aid will come down to USD 4.1 billion.

The aid was disbursed under Pakistan Enhanced Partnership Agreement (PEPA) 2010, reported Express Tribune.

The US apprised Pakistan Prime Minister Imran Khan about its decision to cut aid three weeks before his planned visit to Washington.

Notably, the PEPA was signed in September 2010 to make operational the Kerry Lugar Berman (KLB) Act that was passed by the US Congress in October 2009 to disburse USD 7.5 billion to Pakistan over a period of 5 years.

Last year in September, the United States' military had cancelled the financial aid worth USD 300 million to Pakistan due to the growing concerns regarding Islamabad's failure to tackle terrorism.

In January that year, Pentagon had cut USD 1 billion worth financial aid to Pakistan, with Defense Secretary James Mattis and other officials citing Islamabad's failure to crack down on the Haqqani terror outfit as the reason behind it, Fox News reported.

During his meeting with Pakistan Prime Minister Imran Khan, last month, US President Donald Trump strongly criticised Islamabad for its behaviour which led to the cancellation of US aid amounting to USD 1.3 billion to the country.

"We were paying USD 1.3 billion to Pakistan as aid, for many years. The problem was...Pakistan was not doing anything for us. They were really subversive. They were going against us. I ended that about a year and a half ago, the USD 1.3 billion (aid)," Trump said during his meeting with Khan.

(With ANI inputs)

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