United States aid to Pakistan has been cut down by $440 million to reach $4.1 billion under the Kerry Lugar Berman Act. It has reached almost half of the total amount that the US promised 9 years ago.
Sources in the Ministry of Economic Affairs said that the decision to cut Pakistan’s economic assistance that was paid under the Kerry Lugar legislation of 2009 was conveyed to Pakistan almost three weeks before the visit of Prime Minister Imran Khan to the United States.
Under the Pakistan Enhanced Partnership Agreement (PEPA) 2010, the aid was paid. Back in September 2010, PEPA was signed to make the Kerry Lugar Berman (KLB) Act operation that was passed on October 2009 by the US Congress to disburse $7.5 billion to Pakistan. But as PEPA agreement was made operational, Pak-US relations deteriorated. This affected the actual commitments and payments under the KLB Act.
On 1st July, the United States Agency for International Development (USAID) informed the Pak government that under the Trump administration’s overall review the assistance under PEPA was cut down by $440.2 million.
As per the Economic Affairs Ministry officials, it’s not just Pakistan that has been affected by recent cuts in aid. As part of President Donald Trump’s strategy, there is a reduction in aid to the developing countries.