ISLAMABAD: The Obama administration has requested $1.16bn for aid to Pakistan in the 2014 financial year — almost half of the $2.6bn it spent in 2012 and a quarter of the $4.5bn it spent in 2010 reports said.
The military aid also goes down to $397m from over $1.2bn in 2010. The cuts, however, may not have a major impact on the Pakistani economy as the country received an estimated $12.8bn from July 2012 to May 2013.
Pakistani diplomats in Washington, when asked for comments, said it would be wrong to interpret the cuts as indicating deterioration in US-Pakistan ties.
They said the US was aware of Pakistan’s critical role in ensuring peace and stability in South Asia and this reflected in US Secretary of State John Kerry’s decision to visit Islamabad on July 28.
The diplomats pointed out that the US planned to withdraw most of its combat troops from Afghanistan by 2014, which further enhanced Pakistan’s role in ensuring a peaceful transition in Afghanistan.
They noted that Washington had also helped Islamabad in dealing with a major energy crisis and the 2010 floods.
They said the Congressional Research Service, which had reported the aid cuts, also noted that like previous US administrations, the Obama administration continued to support a “stable, democratic, and prosperous” Pakistan.
The administration believes that Pakistan plays a ‘critical role’ in South Asia and also in US counter-terrorism efforts, the report said.
For fiscal year 2014, beginning October 1 this year, the Obama administration is requesting a total of $1,162.57m, of which about two-thirds is for economic assistance and one-third is for security assistance.
“The total includes $281.2m, considered to be Overseas Contingency Operations (OCO) that is not part of the core request but is identified by the administration as extraordinary, temporary funding needs for frontline states,” the CRS said.
The civilian assistance will focus on five key areas — energy, stabilisation, social services (especially health and education), economic growth (including agriculture), and improving governance, including transparency and gender equality.Internews
