Pakistan Faces Significant Consequences as Trump Halts Aid

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Pakistan Faces Significant Consequences as Trump Halts Aid

Synopsis

US President Donald Trump has temporarily halted aid to Pakistan, prompting the government to assess the impact of this funding suspension on various development projects, including energy and agriculture.

Key Takeaways

  • Suspension of aid affects multiple sectors.
  • US reassessment may alter Pakistan's funding.
  • Critical projects on hold, including energy initiatives.
  • Economic growth-related programs impacted.
  • Conditions on future aid expected from Trump.

Islamabad, Jan 28 (NationPress) US President Donald Trump has declared a temporary suspension of aid to Pakistan, halting several development initiatives financed by the United States and compelling the Pakistani government to consider the consequences of losing American funding.

According to reports, the US Department of State instructed all its consular and diplomatic missions to promptly suspend foreign aid programs, initially for a minimum of 90 days. This suspension affects significant US funding to nations including Ukraine, Taiwan, Jordan, Pakistan, and Afghanistan.

"All aid programs for Pakistan have been halted pending a reassessment, which may occur after the initial 90-day duration," stated a government official from Pakistan.

Among the numerous development initiatives backed by the US, critical projects such as the Ambassador's Fund for Cultural Preservation and at least five others related to Pakistan's energy sector have also been suspended.

"This marks a significant development in the context of Pakistan's economic growth framework. The urgent measures undertaken by the government to align with the International Monetary Fund (IMF) program and its relations with the Trump administration, which has been critical of the Shehbaz Sharif led governance in Pakistan, are noteworthy," remarked senior strategic analyst Kamran Yousaf.

He further added, "The US suspension of aid will also directly affect at least four economic growth-related programs and five agricultural development initiatives. This is a significant setback."

US aid supports a variety of projects linked to democracy, human rights, governance, agriculture, energy, human development, etc. Experts believe that the suspension will adversely influence various sectors and lead to serious repercussions for the country's resource management while adhering to the stringent IMF conditions.

"Despite US officials claiming that the aid suspension is temporary and will undergo reassessment, the Trump administration remains highly critical of Pakistan's current leadership. This criticism may influence the reevaluation of US aid to Pakistan," noted Imtiaz Gul, Executive Director of the Centre for Research and Security Studies (CRSS).

Gul emphasized Trump's statement indicating that the US will no longer provide financial aid without expecting returns for the American populace.

"Trump's remarks suggest that the US will impose conditions on its aid to Pakistan. Historically, Pakistan was a non-NATO ally of Washington in the fight against terrorism in Afghanistan. However, with the Afghan Taliban now in control, cross-border terrorism and mutual accusations are significantly impacting Pakistan," stated Gul.

"Should Trump require Pakistan to act as its surveillance partner in Afghanistan, it would pose a challenging and pivotal decision for Shehbaz Sharif, considering various factors such as China, the Taliban, Iran, and others in the region," he added.