The funds are intended to stabilize Pakistan’s economy and combat terrorism.
The Biden administration has requested $101 million in aid from Pakistan to counter terrorism, support economic reforms and provide debt relief, US Under Secretary of State for South and Central Asia Donald Lew announced on Tuesday.
Speaking before a subcommittee of the House Foreign Affairs Committee, Lew stressed that the aid is aimed at stabilizing Pakistan’s economy and preserving democracy and human rights.
This comes amid continuing financial difficulties in Pakistan despite securing a 37-month programme from the International Monetary Fund (IMF).
Lu, who has been accused by Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan of involvement in ousting the government, said the money would also help support economic reforms.
The budget support builds on a recent IMF agreement to introduce higher taxes on agricultural income and reduce the current account deficit.
The agreement with the IMF sets out an aggressive target that could see the top effective tax rate rise to 45% from the current 15% after 2025. Brokerage firm JS Global described the move as “unprecedented”.
In her testimony, Lu also expressed concern about the rights of Afghan women and minorities, and stressed that normalizing relations with the Taliban regime is dependent on respect for the rights of the Afghan people.
He called for the release of all American prisoners being held by the Taliban.
Since the US withdrawal from Afghanistan in August 2021, Washington has provided more than $17.9 billion in aid to the country, maintaining its position as the largest donor.
