As US freezes aid, Pakistan dismisses economic fears for now

Author: Agencies

Washington’s freeze on billions in military assistance to Pakistan will have limited impact, thanks to its friendship with China and diminishing importance of aid to the economy, observers say — but there could be trouble if the US calls in its debts. Exasperated by what it considers Islamabad’s neglect in cracking down on militancy, Donald Trump’s administration last week announced a suspension of the aid, which also also goes towards Afghanistan coalition funding.

“They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more!” President Donald Trump tweeted on New Year’s Day. A senior official told AFP that up to $2 billion of equipment and funding was at stake.

However, with US aid declining significantly in recent years, the economy improving and Beijing just a phone call away, sources told AFP the negative effects would be “marginal” in the short to medium term.

Published in Daily Times, January 11th 2018.

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