US suspends over USD 1.1 bn security assistance to Pakistan

Agencies
January 5, 2018

Washington, Jan 5: The US has suspended more than USD 1.15 billion security assistance to Pakistan, accusing Islamabad of harbouring terror groups like the Afghan Taliban and the Haqqani Network within its border and showing unwillingness to take "decisive actions" against them.

The freezing of all security assistance to Pakistan comes days after President Donald Trump in a new year tweet accused Pakistan of giving nothing to the US but "lies and deceit" and providing "safe haven" to terrorists in return for USD 33 billion aid over the last 15 years.

Prominent among the suspended amount include USD 255 million in Foreign Military Funding (FMF) for the fiscal year 2016 as mandated by the Congress.

In addition, the Department of Defense has suspended the entire USD 900 million of the Coalition Support Fund (CSF) money to Pakistan for the fiscal year 2017.

"Today we can confirm that we are suspending national security assistance only, to Pakistan at this time until the Pakistani government takes decisive action against groups, including the Afghan Taliban and the Haqqani Network. We consider them to be destabilising the region and also targeting US personnel. The US will suspend that kind of security assistance to Pakistan," State Department Spokesperson Heather Nauert told reporters.

The US, she said, will not be delivering military equipment or transfer security-related funds to Pakistan unless it is required by law.

Referring to the new South Asia Policy announced by Trump in August, Nauert said despite a sustained high-level engagement by this administration with the government of Pakistan, the Taliban and the Haqqani Network continue to find sanctuary inside Pakistan as they plot to destabilise Afghanistan and also attack the US and allied personnel.

Department of Defense Spokesperson Lt Col Mike Andrews told PTI that National Defense Authorisation Act 2017 provides up to USD 900 million for Pakistan in CSF.

Of these funds, USD 400 million can only be released if the Secretary of Defense Jim Mattis certifies that the Pakistan government has taken specific actions against the Haqqani Network.

"At this stage all Fiscal Year 17 CSF have been suspended, so that's the entire amount of USD 900 million," Andrews said.

During an interaction with Pentagon reporters, Defense Secretary Jim Mattis did not respond to question if he was in favour of cutting off the aid to Pakistan.

"I prefer not to address that right now because it's obviously still being formulated as policy. But I'll give my advice on it to the president. I also agree on some confidentiality there," he said.

According to a senior State Department official, no decision has been taken on the fate of USD 255 million security assistance to Pakistan for the fiscal year 2017.

The deadline for that is September 30 this year.

Mattis along with the Secretary of State Rex Tillerson have travelled to Pakistan in recent months to deliver tough message to their leadership. So, this action should not come as a surprise to them, Nauert said.

"They may say it's a surprise, but what is no surprise is that the President has expressed his concerns, Secretary Tillerson has expressed his concerns, as has Secretary Mattis, and I imagine many other government officials having those conversations with Pakistan," Nauert said.

Now, the money that has been suspended at this time does not mean that it will be suspended forever, she said.

"Pakistan has the ability to get this money back, in the future, but they have to take decisive action. They have to take decisive steps," she added.

"People have long asked, why don't you do more about Pakistan, and I think this sort of answers that question. Obviously, Pakistan is important, an important relationship to the US, because together we can work hard to combat terrorism. Perhaps no other country has suffered more from terrorism than Pakistan and many other countries in that part of the region," she said.

"They understand that, but still they aren't taking the steps that they need to take in order to fight terrorism," she said.

In an interaction with reporters, two senior state department officials asserted that such a move is not a punishment, but to provide an incentive to Pakistan to take more action against terrorist groups.

"We have not done anything that's irreversible here. All this funding is available to Pakistan, if they undertake to take the measures that we've asked of them," a senior administration official said in response to a question.

Noting that a country is going to react very differently to an irreversible step, the official hoped Pakistan would react differently that they would react to something which is reversible.

"Pakistanis have repeatedly said we don't care about this money. What matters I think to the Pakistani's is that it is the symbolism of doing this that it represents a deterioration of our relationship that they care about a great deal," the official said.

"So we were hoping that this is an incentive that they don't want to see this relationship deteriorate any further and that they're going to commit to working with us to try to find a way to put it on a more solid footing," the official added.

According to another senior administration official, as part of the latest decision, the US will now not deliver military equipment or transfer security related funds to Pakistan unless required by law.

"Exceptions may be made on a case by case basis if they're determined to be critical for national security interests," the official said, adding that this suspension is not a permanent cut off at this time.

"Security assistance funding and pending deliveries will be frozen but not cancelled as we continue to hope Pakistan will take the decisive action against terrorists the militant groups that we seek," the official said, adding that the US does not intend to reprogram any funds at this time.

This suspension includes FMF 2016 (USD 255 million) as well as prior year FMF that has not yet been spent or delivered.

Final figures are still being calculated, said the official, who spoke on condition of anonymity.

Suspension also includes coalition support funds for Pakistan.

However, the suspension does not include US civilian assistance programs in Pakistan.

"Pakistan remains an important country in the region and in the world and has historically been a vital partner for the US," the official said.

The State Department official defended the decision not to suspend civilian assistance.

"We all have no reason to believe that civilian assistance represents any form of leverage. The elements of the Pakistani government that needs to take the steps that we're talking about are not touched by civilian assistance. So, it wouldn't make any sense to tie civilian assistance to those steps that we're asking for," the official said.

US has been holding regular talks with Pakistan, the official said, adding that they do not believe that talks are an impasse as reported in some section of the media.

"We are having conversations on a weekly basis at senior levels with the Pakistanis. Our hope is not that they will see this as the end of the road," the official said.

"Our hope is that they will see this as a further indication of this administration's immense frustration with the trajectory of our relationship and that they need to be serious about taking the steps we asked in order to put it on a more solid footing," the State Department Official said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 10,2020

Lahore, Jul 10: The Punjab government enforced smart lockdown in seven cities of the province for 15 days with an immediate effect from Thursday night, The News International reported.

The Primary and Secondary Healthcare Department on Thursday issued a notification under the Punjab Infectious Diseases Ordinance 2020, about enforcement of lockdown in Lahore, Multan, Faisalabad, Gujranwala, Sialkot, Gujrat and Rawalpindi, till July 24 midnight.

In Lahore, the lockdown will be enforced in A2 Block Township, EME Society, Main Bazaar Chungi Amr Sadhu, Punjab Government Servants Housing Scheme, Wapda Town, C-Block Jauhar Town and Green City.

The basic necessities of life will remain available in smart lockdown areas. "The purpose of the smart lockdown is to minimise movement of people in hotspots of positive coronavirus cases," said Capt (retd) Muhammad Usman, Secretary, Primary and Secondary Healthcare Department.

The country registered 2,751 new COVID-19 cases during the last 24 hours, taking the tally to 243,599 on Friday. The province-wise breakup includes 85,261 cases in Punjab, 100,900 cases in Sindh, 29,406 in Khyber Pakhtunkhwa, 11,099 in Balochistan, 13,829 in Islamabad, 1,619 in Gilgit-Baltistan and 1,485 in Pakistan-occupied Kashmir.

The death toll due to the virus reached 5,058 with 75 more deaths reported over the last 24 hours, as per data cited by Radio Pakistan.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 24,2020

Jan 24: India’s economy appears to be shaking off a slump, as activity in the services and manufacturing sectors expanded for a second straight month in December.

The needle on a gauge measuring so-called animal spirits signaled the economy may be taking a turn for the better, as five of the eight high-frequency indicators tracked by Bloomberg News came in stronger last month. The dial was last at the current position in August.

“Animal spirits” is a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action, and the gauge uses the three-month weighted average to smooth out volatility in the single-month numbers.

The nascent recovery would need a helping hand, with expectations building that Finance Minister Nirmala Sitharaman will provide some stimulus when she presents the budget Feb. 1. Official forecasts show the economy is set to expand at 5% in the year ending March 2020 -- the weakest pace in more than a decade.

Here are the details of the dashboard:

Business Activity

The dominant services index rose to the highest level in five months in December as improving new work orders helped boost activity. The seasonally adjusted Markit India Services PMI index climbed to 53.3 from 52.7 in November, helping post a strong end to the calendar year.

India’s manufacturing PMI also rose -- to 52.7 from 51.2 a month ago -- boosted by the fastest increase in new orders since July. A reading above 50 means expansion while anything below that signals contraction.

The uptick in business confidence was accompanied by a rise in inflationary pressures, the survey showed. That trend may keep monetary policy makers from resuming interest-rate cuts anytime soon, leaving most of the heavy-lifting to boost growth with the government.

“The relative stability in macro indicators over the past two months suggests that the worst is behind, but the recovery is likely to be prolonged,” said Teresa John, an economist at Nirmal Bang Equities Pvt. in Mumbai. “Still, sluggish growth and rising inflation indicate that India may well remain in stagflation for most of 2020.”

Exports

Exports remained a laggard, falling 1.8% in December from a year ago. The drag was mainly because of a fall in export of engineering goods, which constitute a third of India’s non-oil exports.

Capital goods imports continued to contract and was lower by 16.5% year-on-year in December after a 22% drop in November. This was the seventh consecutive month of continuous decline, underscoring the weakness in the capex cycle, according to IDFC First Bank.

Consumer Activity

Weakness in demand for passenger vehicles persisted, with local sales falling 1.2% in December from a year ago, according to the Society of Indian Automobile Manufacturers. That capped the worst yearly passenger vehicle sales on record. A Nielsen study on demand for fast-moving consumer goods showed volume growth dropped to 3.5% in the last quarter of 2019 from 3.9% in the same period of 2018.

Funding conditions held out hope, showing considerable improvement in December, according to the Citi India Financial Conditions Index. Credit growth remained tardy though, with demand for loans rising at a slower 7.1% pace from a year ago compared with a nearly 8% growth in November.

Industrial Activity

Industrial output rose for the first time in four months in November. The pick up was broad-based, led by mining, manufacturing and electricity. Mining and manufacturing, in particular, posted a second month of sequential growth. Production of consumer goods also rose after a few months of contraction.

The index of eight core infrastructure industries, which feeds into the index of industrial production, however, declined 1.5% in November from a year ago -- the fourth straight month of contraction. That was on account of shrinking production of electricity, steel, coal, natural gas and crude oil. Both the core sector and industrial output numbers are reported with a one-month lag.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 2,2020

Paris, Mar 2: A global agency says the spreading new virus could make the world economy shrink this quarter, for the first time since the international financial crisis more than a decade ago.

The Organization for Economic Cooperation and Development says Monday in a special report on the impact of the virus that the world economy is still expected to grow overall this year and rebound next year.

But it lowered its forecasts for global growth in 2020 by half a percentage point, to 2.4 per cent, and said the figure could go as low as 1.5 per cent if the virus lasts long and spreads widely.

The last time world GDP shrank on a quarter-on-quarter basis was at the end of 2008, during the depths of the financial crisis. On a full-year basis, it last shrank in 2009.

The OECD said China's reduced production is hitting Asia particularly hard but also companies around the world that depend on its goods.

It urged governments to act fast to prevent contagion and restore consumer confidence.

The Paris-based OECD, which advises developed economies on policy, said the impact of this virus is much higher than past outbreaks because "the global economy has become substantially more interconnected, and China plays a far greater role in global output, trade, tourism and commodity markets."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.