Islamabad, Jan 28: US President Donald Trump has announced cancellation of aid to Pakistan temporarily, ceasing several development projects funded by the United States and forcing the government of Pakistan to contemplate the repercussions of a halt in the American fundings.
As per details, the US Department of State directed all of its consular and diplomatic missions to immediately suspend foreign aid programmes, initially for a period of at least 90 days. The suspension includes major US fundings to countries including Ukraine, Taiwan, Jordan, Pakistan and Afghanistan.
"All aid programmes for Pakistan have been suspended pending a reassessment, which may be done after the initial 90-day period," said a Pakistan government official.
Among the many development programmes funded by the US, important projects including Ambassador's Fund for Cultural Preservation and at least five other projects related to Pakistan's energy sector, have also been suspended.
"This is a major development in the context of Pakistan's economic development framework. The dire and desperate efforts being made by the government to comply with the International Monetary Fund (IMF) programme and its relations with the Trump 2.0 administration, whose officials have been critical in their views about the Shehbaz Sharif led Pakistan leadership," said senior strategic analyst Kamran Yousaf.
"US suspension of aid will also put a direct impact on at least four economic growth-related programmes and five agricultural development projects. It is a major setback," he added.
US aid contributes to multiple projects related to various sectors including democracy, human rights, governance, agriculture, energy, human development, etc. Experts reckon suspension will have a direct impact on multiple sectors and cause serious implications on the country's re-arrangement and management of its resources while maintaining compliance with the tough conditions of the IMF.
"While the US officials say that the decision to suspend its aid programme is temporary and will go through reassessment and scrutiny, the members of the Trump administration hold a very critical view for the current leadership in Pakistan. This may play a role in re-assessing US aid to Pakistan," said Imtiaz Gul, Executive Director of Centre for Research and Security Studies (CRSS).
Gul highlighted the statement by Donald Trump in which he stated clearly that the United States is no longer going to blindly dole out money with no return for the American people.
"Trump's statement clearly indicates that the US will put conditions on its aid to Pakistan. In the past, Pakistan was Washington's non-NATO ally in its war against terrorism in Afghanistan. But now the Afghanistan regime is under control of the Afghan Taliban and that is already affecting Pakistan severely with cross-border terror activities, coupled with threats and accusations from both sides," said Gul.
"If Trump demands Pakistan to become its eyes and ears on Afghanistan, it would be a very difficult, crucial and critical decision for Shehbaz Sharif to take because of many factors including China, Taliban, Iran and others in the region," he added.
