How will the US move to cut aid affect Pakistan?

Source: BBC News

The Trump administration says it is cutting almost all security aid to Pakistan until it deals with terrorist networks operating on its soil. But will the cuts have any impact, asks the BBC’s M Ilyas Khan.

The US has yet to announce exactly how much aid will be cut – but defence experts believe the total impact of the visible aid suspension may fall in the range of more than $900m (£660m).

This includes the suspension of $255m due to Pakistan for military equipment and training under the Foreign Military Financing (FMF) fund, and $700m under the Coalition Support Fund (CSF) – paid to Pakistan for conducting operations against militant groups.

Experts believe the total financial impact of an adverse US policy on Pakistan could be much higher than this though, especially as the US state department has said an unspecified amount of other security assistance managed by the department of defence could be cut.

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1 reply

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