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US Seeks $101 Million Budget to Strengthen Democracy and Stabilize Economy in Pakistan
The US administration requests $101 million to support democracy, fight terrorism, and stabilize Pakistan’s economy! This move aims to reduce reliance on China and promote economic reforms.
ND
by News Desk
2024-07-24
US Seeks $101 Million Budget to Strengthen Democracy and Stabilize Economy in Pakistan

The US administration has requested a budget of $101 million to support Pakistan in strengthening its democracy, combating terrorism, and stabilizing its economy, according to US Assistant Secretary of State Donald Lu. He presented this request to the House of Representatives Foreign Affairs Committee on Tuesday.

 

Donald Lu emphasized that Pakistan is navigating "ongoing challenges and opportunities." The requested funds aim to bolster democracy and civil society, counter terrorism and violent extremism, and support economic reforms and debt management to stabilize Pakistan's economy.

 

"The President’s Budget requests a straight-lining of our $101 million Pakistan budget," Lu stated. "This funding will be pivotal in enhancing democracy, fighting terrorism, and supporting crucial economic reforms in Pakistan."

 

This budget request aligns with the US’s consistent calls for Pakistan to uphold democratic values. Recently, the US House of Representatives passed a resolution expressing concerns about democracy and human rights in Pakistan, which Islamabad dismissed as unfounded.

 

The US maintains a "shared interest" with Pakistan in addressing terrorism, a threat that endangers the entire region. The budget request aims to prevent Islamabad's "overreliance" on Beijing by offering an alternative to Chinese investments.

 

The President’s budget proposes $1.01 billion in foreign assistance for the South and Central Asia region to counter Chinese and Russian influence and to combat terrorism. Of this, $585.7 million is designated for South Asia, reflecting a 4.8% increase from the previous year.

 

Commenting on Pakistan's economic ties with China, Lu stated that the US aims to prevent further dependence on Beijing. "China is the past in terms of investment; we are the future," he declared.

 

Pakistan is a significant recipient of Chinese development finance, with a portfolio of $70.3 billion, primarily in loans. Last year, China rolled over $2.4 billion in loans to help Pakistan during its financial crisis. This assistance was crucial as Islamabad struggled to secure a staff-level agreement with the International Monetary Fund (IMF).

 

The US’s financial support seeks to provide Pakistan with the necessary tools to manage its economy more independently and reduce its dependency on Chinese financial aid.

 
Tagged:

USPakistan

Democracy

ForeignAid

EconomicStability

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