Trump’s aid cut compounds Pakistan’s woes

“That’s ENDING!,” declared US President Donald Trump in a tweet on November 19, referring to the bilateral military assistance to Pakistan, as he invoked the slain 9/11 mastermind Osama Bin Laden, who was taken out by American forces after being found hidden in the garrison town of Abbottabad in 2011.

“Of course, we should have captured Osama Bin Laden long before we did. I pointed him out in my book just BEFORE the attack on the World Trade Center. President Clinton famously missed his shot. We paid Pakistan Billions of Dollars & they never told us he was living there. Fools!..,” tweeted the American President.

Bilateral relations between the US and Pakistan have been on a downward trajectory since Trump’s New Year tweet, in which he had accused the leadership in Islamabad for returning US’ favour and funds with nothing but “lies and deceit.”

“We no longer pay Pakistan the $Billions because they would take our money and do nothing for us, Bin Laden being a prime example, Afghanistan being another. They were just one of many countries that take from the United States without giving anything in return,” said Trump in another tweet on November 19.

Days after Trump’s scathing tweets, Pentagon announced that it had suspended security assistance worth $1.66 billion of security assistance to the Imran Khan government.

The latest round of attack from the White House comes at a time when neighbouring Afghanistan is battling a spate of terrorist violence, amid efforts by Russia to bring together various regional powers to find a solution to Afghanistan’s woes.

From the low-level representation of the US at the talks, it became apparent that Washington wasn’t too keen on the Kremlin taking the lead in the Afghan reconstruction process. Pakistan, which is a key player in the Moscow Forum and whose importance in the Afghan Peace Process is recognised by Russia and other powers, sent a high-level delegation to the talks.

But gradual erosion of American aid, which Trump said stood at $33 billion over a 15-year period, could have spiralling consequences for Pakistan’s faltering economy.

According to official and unofficial data, Islamabad’s external debt and liabilities have increased 76 per cent to $92 billion) since June 2013, taking the ratio up to 31 per cent of gross domestic product, the highest in almost six years.

A huge chunk of Pakistan’s debt is said to have its origin in the $60 billion China Pakistan Economic Corridor (CPEC), part of Beijing’s One Belt One Road (OBOR). Reportedly, Imran Khan has asked China to make some concessions in the debt restructuring structure so it doesn’t default on its payments.

Imran Khan, who reacted sharply to Trump’s tweets, was on a visit to Malaysia when the news of American aid cut became public.

Both Khan and Malaysia’s Mahathir Mohamed pledged support to each other in tackling the debt burden both the Islamic democracies find themselves embroiled in.

Mahathir had cancelled $22 billion worth of Chinese projects after coming to power earlier this year, stating they were “too expensive.”