The official has told AFP that both United States military assistance and Afghanistan coalition funding to Islamabad could be suspended. Pakistan has developed a close relationship with China, for example, which is investing $62 billion in infrastructure projects in the country.
However, the United States is only stopping the security aid, the humanitarian assistance to Pakistan will continue. But cutting funding to Pakistan will do little to advance USA interests in the region, analysts note. At that time, Indian officials had been heartened by Trump's tough words on Pakistan, but had been waiting to see the follow-up.
But Pakistan quickly became an important military asset.
In efforts to persuade Islamabad to abandon this nefarious "double game", the USA government has deployed a constant stream of diplomatic and economic carrots-including $33 billion in aid and "reimbursements" since 2002-but virtually no sticks. USA aid agencies alone gave nearly $5 million to Pakistan in 2017, according to data from USAID. From $2.60 billion in 2013 to $1.60 billion in 2015, the request for aid appropriations and military reimbursements in 2018 fell to just $350 million.
It said that Pakistan believed that its cooperation with U.S. in fighting terrorism directly served USA national security interests as well as the larger interests of the worldwide community.
So far, Trump and his advisers have seemed inclined to take a hard-line approach toward the country.
The decision to cut funding comes just several days after President Donald Trump tweeted his disappointment with Pakistan, claiming that the US got nothing but "lies and deceit" for the $33 billion in aid the USA gave Pakistan between 2002 and 2018. "That will have to change and that will change immediately".
In the rocky relationship shared by the United States and Pakistan, the former had continuously accused the latter of harbouring terrorists responsible for killing American soldiers in neighbouring Afghanistan.
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"Through those links, Pakistan has the ability to control at least some of the tempo of the fighting in Afghanistan - and it has done little to constrain it over the past two years, the officials say", the New York Times reports.
Relations between Islamabad and Washington have been strained for years over Islamabad's alleged support for Haqqani network militants, who are allied with the Afghan Taliban. "I don't think they will fully cut off the assistance, because they still want to work with Pakistan". Out of this, $400 million was eligible for Haqqani Network-related certification requirements that can not be waived by the administration.
Pakistani officials reacted to the news with measured frustration.
"The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies and deceit, thinking of our leaders as fools", President Donald Trump declared in a January 1 tweet.
'There are considerable risks for the US because Pakistan could retaliate in ways that would be very problematic for USA regional interests, ' he said, such as curtailing intelligence cooperation and USA supply lines into Afghanistan.
She also explained what the suspension entails and said that the U.S. will not be providing military equipment to Islamabad unless required there is a legal requirement.