$2bn in military transfers on the line after US suspends aid

Published
61

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 X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Expanding conflict
31 Jul, 2026

Expanding conflict

WITH neither of the belligerents willing to back down, and the theatre of conflict expanding geographically, the...
Spoils and spats
31 Jul, 2026

Spoils and spats

A FIGHT over assembly seats in Azad Jammu and Kashmir has laid bare what seem to be some deep resentments between ...
Unfair tax system
31 Jul, 2026

Unfair tax system

THE disclosure that the FBR collected nearly Rs1.9tr in sales and income taxes through electricity bills over the...
Debt that stays
30 Jul, 2026

Debt that stays

THE power sector’s circular debt grew by Rs61bn in the last fiscal year, taking the total to roughly Rs1.67tr from...
HIV warning
30 Jul, 2026

HIV warning

THE HIV infections detected around two SESSI-run hospitals in Karachi demand far more than another hurried committee...
End trafficking
30 Jul, 2026

End trafficking

MODERN slavery, in the form of human trafficking, is among the state’s gravest failures. Scores of Pakistanis are...