Biden Requests $101 Million Aid for Pakistan

US Assistant Secretary for South and Central Asia, Donald Lu, announced on Tuesday that President Joe Biden has requested $101 million in aid for Pakistan. The funds are aimed at supporting democracy and human rights in the country. Lu made this statement during a committee hearing of the American House of Representatives, convened to discuss the United States budget for South Asia.

This aid is crucial for stabilizing Pakistan’s struggling economy, even after securing a 37-month International Monetary Fund (IMF) program.

The program includes increased taxation on agricultural incomes and higher effective tax rates, which are measures designed to increase government revenue and reduce the recurrent deficit.

The new IMF agreement follows a short-term, $3 billion program that helped stabilize Pakistan’s economy, avert a sovereign debt default, and set challenging revenue targets in its budget to secure IMF approval. The highest effective tax rate is set to rise to as much as 45% from the current 15%, starting in 2025. This move has been termed “unprecedented” by JS Global, a brokerage and investment banking firm.

Donald Lu’s comments come amid political tensions, as Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan previously accused him of being involved in toppling his government in 2022. Despite these allegations, the US continues to engage with Pakistan, emphasizing the importance of supporting democratic processes and human rights.

Lu also expressed concerns about the situation in Afghanistan, particularly regarding the rights of women and minority groups. He stated that relations with the Taliban government cannot normalize until the rights of Afghan citizens are respected. Additionally, he demanded the release of all American prisoners held by the Afghan Taliban.

The US remains the largest aid donor to Afghanistan, having provided over $17.9 billion in assistance since the Taliban took control of Kabul in August 2021. This aid continues despite the chaotic US troop withdrawal after 20 years of conflict with the Islamist militants.

The requested $101 million aid package for Pakistan underscores the US’s commitment to supporting democracy, human rights, and economic stability in the region. As Pakistan navigates its economic challenges and Afghanistan grapples with human rights issues under Taliban rule, US financial and diplomatic efforts remain crucial in promoting stability and development in South and Central Asia.