US cuts USD 440 million financial aid to Pakistan
   Date :18-Aug-2019

IN ANOTHER jolt to Pakistan, the US slashed the aid to the cash-strapped nation by nearly USD 440 million, bringing down its commitment to just USD 4.1 billion. The aid was disbursed under Pakistan Enhanced Partnership Agreement (PEPA) 2010, reported ‘Express Tribune’.
The US apprised Pakistan Prime Minister about its decision to cut aid three weeks before his planned visit to Washington. Notably, the PEPA was signed in September 2010 to make operational the Kerry Lugar Berman (KLB) Act that was passed by the US Congress in October 2009 to disburse $7.5 billion to Pakistan over a period of 5 years. Earlier the aid under the KLB stood at nearly USD 4.5 billion. Following the cut, the aid will come down to USD 4.1 billion.
Last year in September, US’ military cancelled the financial aid worth $300 million to Pak due to the growing concerns regarding Islamabad’s failure to tackle terrorism. In January that year, Pentagon had cut $1 billion worth financial aid to Pak, with Defense Secretary James Mattis and other officials citing Islamabad’s failure to crack down on the Haqqani terror outfit as the reason behind it, ‘Fox News’ reported.