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
March 21,2020

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.

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 19,2020

New Delhi, Jul 19: With the highest single-day spike of 38,902 cases reported in the last 24 hours, India's total COVID-19 tally on Sunday reached 10,77,618, informed the Union Health and Family Welfare Ministry on Sunday.

The death toll has gone up to 26,816 with 543 fatalities reported in the last 24 hours.

The Health Ministry said the total number of cases includes 3,73,379 active cases and 6,77,423 patients have been cured/discharged/migrated.

Maharashtra remains the worst affected state with 3,00,937 cases reported until Saturday.
Meanwhile, as per the information provided by the Indian Council of Medical Research (ICMR), 1,34,33,742 samples have been tested for COVID-19 till July 18, of these 3,61,024 samples were tested yesterday.

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
May 7,2020

Dubai/Abu Dhabi, May 7: A group passengers who are scheduled to fly to Kozhikode on the first COVID-19 Indian repatriation flight have begun streaming in to Terminal 2 at Dubai International Airport.

Wearing masks and gloves, the passengers are now waiting for the medical screening and check-in services to begin.

Airport officials gave entry to the departure terminal only to passengers with tickets.

Naif resident Mahamood P.P, 60, was among the first to reach as he was not informed about the change in the flight schedule, he told Gulf News.

“I reached here at 9.30am as I didn’t get any information about the 2.10pm flight getting rescheduled to the evening,” he said.

Suffering from a heart disease, Mahmood, who works as a juice maker at a juice shop near Naif Police station, said he stepped out of his room for the first time in two months.

“As there were many cases in Naif, I never went out because of my health condition. Since I was not in contact with anyone else other than my roommates who also never went out, I didn’t go for the COVID screening also. I was worried that I might be exposed to infection while waiting for the tests,” he said.

He thanked the Indian Consulate for giving him priority to fly home. “I need to go for my heart checkup. So I wanted to fly home as soon as possible.”

However, he said his son, a civil engineer who came here searching for a job, is not flying back though he is on a visit visa.

“Since the UAE government has allowed people on visit visa to stay here till December, he has decided to try his luck in getting a job,” said Mahamood.

Sneha Thomas, who is eight months pregnant, was also among the first to arrive at the airport.

Her husband Somi Jose came to drop her.

Thomas is among 11 pregnant women flying on the Dubai-Kozhikode flight.

Sharjah resident for 30 years, Mohammed Ali Yaseen, who is also the secretary of the Kerala Muslim Cultural Centre in Sharjah, said he is flying home as the restaurant he was running had to be closed due to a demolition plan of the building.

“Three months ago I got the notice to vacate the building and I had to close the restaurant. I was looking for another shop. But then the coronavirus hit. Now there is no point in me opening me a new shop as those who are already operational are not getting any business.”

He said he decided to drop the plan and go home for now. “My visa and license are still valid. I will try to come back when this pandemic ends and things are better.”

Meanwhile, at the Au Dhabi International Airport, families with kids were given priority to proceed towrards check-in. at terminal 3. The passengers coming in right now were mostly women who were on a visit visa. Pregnant women and the elderly too were given priority.

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.