The United States has Cut the Proposed Financial Aid to Pakistan

America is giving another blow to Pakistan going through economic crisis. The United States has cut the proposed financial aid to Pakistan under the Kerry Lugar Burman Act by $ 450 million. After this deduction, Pakistan will be given a sum of $ 4.1 billion.
According to the report of the Pakistani newspaper Express Tribune, Pakistan was given official information about Imran Khan’s decision to cut subsidy, three weeks before the US visit of Imran Khan. Pakistan receives this financial support from the US through the Pakistan Enhance Partnership Agreement (PEPA) 2010. According to sources in the Ministry of Economic Affairs, Pakistan extended the deadline for PEPA last week to get the remaining US $ 90 million in US aid.

According to media reports, in October 2009, the US Congress passed the Kerry Lugar Burman Act. PAPA was signed in September 2010 to implement it. Under this, arrangements were made to provide assistance of $ 7.5 billion to Pakistan over a period of five years. The act was brought with the objective of investing in Pakistan’s economic structure, under which the country’s energy and water crisis was to be overcome. A sum of $ 4.5 billion was to be allocated before the cut in funding, which has now come down to $ 4.1 billion.
$ 6.6 billion helped by all means:

According to Pakistan’s economic ministry, Pepa is one of the four mediums through which the US provides financial assistance to Pakistani citizens. The US has pledged about 8.2 billion dollars in financial aid to Pakistan since 2001, of which $ 6.6 billion has been given to it. At the same time, on this decision of the US, Pakistan officials said that the amount of money received from the US has not been cut only for Pakistan. This is part of US President Donald Trump’s strategy to reduce aid to developing countries.
Relations between Pakistan and America started deteriorating as soon as the PAPA agreement came into force. It also had an impact on America’s commitment to Pakistan and its financial support. In January 2018, Trump, in a tweet, had heard Pakistan being fierce. At the same time, the security assistance amount of $ 1.3 billion to Pakistan was stopped. Trump had rebuked that Pakistan had given nothing to America except lies and deception.

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