WASHINGTON: US President Donald Trump’s decision to freeze aid to Pakistan could affect almost two billion dollars’ worth of assistance, a senior administration official said on Friday — substantially more than first thought.

After an announcement designed to force Pakistan’s military and intelligence apparatus to cut support for the Taliban and other Islamist groups, the official said that both US military assistance and Afghanistan coalition funding to Islamabad could be suspended.

It is “approximately two billion worth of equipment and coalition support funding that is in play,” the official said on condition of anonymity.

After more than a decade of simmering US anger at links between Islamabad and the Taliban and the Haqqani network — a Taliban affiliate — President Donald Trump is trying to draw a line in the sand.

On the hook is almost $1bn of US military equipment that has allowed Pakistan access to advanced military technology, but also funding that is meant to pay Pakistan for helping get US and NATO materiel into Afghanistan.

Analysts believe the United States is highly unlikely to freeze all that funding, which totals $1.9bn, according to the source.

US officials have already indicated that there could be “exemptions” for programs deemed vital to US national security, likely including cash for keeping Pakistan’s nuclear weapons safe.

But nevertheless, the total figure of $1.9bn is much higher than first indicated and is a signal of Washington’s seriousness.

The senior administration official said “all options are on the table” when it comes to further moves, including stripping Pakistan of its status as a “major non-NATO ally” or calling in vital IMF loans.

Published in Dawn, January 6th, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Never again
Updated 17 Jan, 2025

Never again

The Gaza genocide has also revealed the utter helplessness of the Palestinian Authority in projecting Palestine’s case globally.
World Bank loan
17 Jan, 2025

World Bank loan

THAT the World Bank will give $20bn to Pakistan in the next 10 years to address some of the country’s most acute...
India’s dangerous game
17 Jan, 2025

India’s dangerous game

THE latest inflammatory remarks by India’s military brass about Pakistan mark a troubling departure from the...
Peshawar meeting
Updated 16 Jan, 2025

Peshawar meeting

Dealing with Afghan Taliban is necessary not just for internal stability, but to ensure that Afghanistan not isolated regionally.
Cyber circus
16 Jan, 2025

Cyber circus

PAKISTAN’S cybercrime-fighting apparatus is proving rather good at harassing journalists and remarkably poor at...
Anti-abuse action
16 Jan, 2025

Anti-abuse action

IN what is a social minefield for women, the Punjab police investigation department’s decision to deploy 1,450...