Pakistan Blames India for US’ Decision To Cancel 300 Million Aid?

Why is Pakistan blaming India for Washingtons decision to cancel 300 Million Aid? US-Pakistan relations took a further beating when the US on Sunday cancelled aid of USD 300 million for Pakistan. Pakistan feels that this move has been made by the US to improve its relations with India. Pakistani Senator Mushahid Hussain stated on Sunday that the US plan to quash Pakistan’s aid is to appease India. 

The Pakistani senator feels that this move by the US is a part of Washington’s strategy to
bolster the India-US front against China. He also said that this decision by the US will undermine the imminent visit of US Secretary of State.

Hussain heads the foreign affairs committee in Pakistan’s Senate. He further said that this is a move to strengthen a front against China which happens to be an all-weather friend of Islamabad.

Earlier the US had abrogated USD 500 million coalition support funds to Pakistan and now this stoppage of USD 300 million has sparked yet another controversy.

The US Owed This Money To Pakistan: Senator

The Senator also said that the US owes this money to Pakistan and this isn’t any aid. Pakistan believes that this money was rather owed by the US to Islamabad for expenditure on counter-terrorism mechanisms initiated by Pakistan. The Pentagon has announced in January that it would be cancelling the aid to Pakistan following which the US Congress suspended the aid of USD 500 million. The final decision about the USD 300 million aid was still being deliberated upon but the US has now cancelled that too.

The coalition support fund refers to the money which is used to reimburse coalition partners for their cooperation with logistical and military operations of the US. Pakistan feels that it has lost a lot in aiding the US’ war against terror and extremism.

A debt-ridden Pakistan is already on the brink of an economic crisis. To make things worse for Pakistan, the US has also raised objections to the possibilities of an IMF bailout to Pakistan. Pakistan’s foreign reserves have plunged to alarming levels and the current account fiscal deficit is steering the economy towards a collapse.