Biden admin seeks $101mn aid for Pakistan

Washington: The Biden administration has requested $101 million in aid for Pakistan to fight terrorism, support economic reforms, and provide debt relief, announced US Assistant Secretary for South and Central Asia, Donald Lu, on Tuesday.

Speaking to a subcommittee of the US House Committee on Foreign Affairs, Lu highlighted that the aid aims to stabilize Pakistan's economy and support democracy and human rights.

This request comes as Pakistan continues to face financial struggles, even after securing a 37-month program with the International Monetary Fund (IMF).

Lu, who has been previously accused by PTI founder Imran Khan of involvement in his government's ousting, stated that the funds would also help support economic reforms.

The aid aims to build on the recent IMF agreement, which introduced higher taxes on agricultural incomes and aimed to reduce the deficit.

The IMF deal sets a challenging target, with the highest effective tax rate potentially rising to 45% from the current 15% by 2025. Brokerage firm JS Global called this move "unprecedented."

In his testimony, Lu also expressed concern over the rights of women and minority groups in Afghanistan, stating that normalizing relations with the Taliban depends on respecting Afghan citizens' rights. He demanded the release of all American prisoners held by the Taliban.

Since the US withdrawal from Afghanistan in August 2021, Washington has provided over $17.9 billion in aid to the country, remaining its largest donor.