Pak Inaction on Terror Costs it Dearly

  • On 20 July 17,  a key congressional panel votes to impose tougher conditions on Pakistan to receive US assistance and authorises the secretary of state to suspend aid if Islamabad fails to take effective actions against terrorist groups. 
  • On 21 Jul 17, Pentagon withholds $50 million in reimbursements to Pakistan because it was unable to verify that Islamabad conducted adequate counter-terrorism operations against the Haqqani network, a hard-line branch of the Taliban.
  • The United States of America on 21 July 17, decides to block the disbursement of USD 350 million aid to Pakistan after the Defence Secretary, Jim Mattis, told the Congress that Islamabad hadn't taken "sufficient actions" against the Haqqani network.
  • The US government on 26 Jul 17, terminated funding to a $15 million project of University of Agriculture Faisalabad (UAF).
  • Last year, the Pentagon withheld $300 million in reimbursements. Pakistan has been reimbursed $550 million of the $900 million the country was authorized to receive in fiscal year 2016.

View Point

Cessation of free flow of US dollar is going to cost Pakistan dearly if it does not show credible evidence on actions taken against terrorist networks. Earlier this aid was used to fill the gap in fiscal deficit of Pakistan, but now the economic gaps will be too large and visibly painful to fledgling Pak economy in absence of US aid.