US President Biden requests for $101 million aid for Pakistan

WASHINGTON (INP): US Assistant Secretary of State for South and Central Asian Affairs Donald Lu emphasized that the Biden administration was committed to supporting democracy and human rights in Pakistan.

During a recent committee hearing in the US House of Representatives on the budget for South and Central Asia, diplomat Donald Lu appeared and discussed issues with a focus on Pakistan.

Lu, whom Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan blamed for toppling his government in 2022, made the statement before a committee of the American House of Representatives, which was summoned to discuss the United States budget for South Asia.

The assistant secretary stated that the funds would be allocated to combat terrorism, support economic reforms, and provide debt relief.

“The US president has requested $101 million in aid for Pakistan,” Lu stated. “This aid is crucial for supporting Pakistan’s ongoing efforts in combating terrorism, implementing economic reforms, and addressing debt relief.”

The requested funds are intended to bolster Pakistan’s efforts to stabilize its economy and enhance its capacity to deal with security challenges. Lu underscored that the aid would play a vital role in reinforcing democratic institutions and promoting human rights in the region.

Lu highlighted that this financial assistance aims to stabilise Pakistan’s economy, which is in dire straits even after the government secured a 37-month-long International Monetary Fund (IMF) programme.

The staff-level agreement caps negotiations that started in May after Islamabad completed a short-term, $3 billion program that helped stabilize the economy, avert a sovereign debt default, and set challenging revenue targets in its budget to get IMF approval.

The new agreement introduced increased tax on agricultural incomes, underscoring the need to increase government revenue and reduce recurrent deficit to win the lender’s approval.

Under the IMF deal, the highest effective tax rate can rise to as much as 45% from the current 15%. It will be implemented from 2025, a move that was termed “unprecedented” by brokerage and investment banking firm JS Global.

Separately, US Ambassador to Pakistan Donald Blome also emphasized the importance of upholding basic human rights as enshrined in Pakistan’s Constitution. He advocated for respect for freedom of expression, considering it crucial for Pakistan’s development and democratic progress.

Also, US State Department spokesman Matthew Miller also reiterated the US’s commitment to supporting democratic values, justice, and the rule of law.

“We support the peaceful upholding of constitutional and democratic principles, including the rule of law, equal justice under the law, and respect for human rights like freedom of expression and freedom of peaceful assembly,” he affirmed.