Why Pakistan Needs US aid to Save Their Economy?

Posted by Rohit Dhyani
February 26, 2018

NOTE: This post has been self-published by the author. Anyone can write on Youth Ki Awaaz.

US President Donald Trump’s new year began with a lot of anger and this anger appears to be making a big difference to Pakistan. Trump says Pakistan is false and deceitful. In terms of help from foreigners, America is the largest donor. Japan, in the second place, Germany in the third and France in the fourth. In early 2018, US President Donald Trump stopped military aid worth $ 255 million from reaching Pakistan. Earlier, the United States had cut the UN budget.

The US government has made it clear that if Pakistan takes action against the terrorists, then it can help. At the same time, it has also been emphasized that civilian assistance given to Pakistan will not be affected.

The current foreign aid system of America was prepared under the Foreign Assistance Act of 1961. Its purpose was to properly implement the support efforts taken by the US government across the world. In America, this help is called “resource distribution with the world”.

This help not only involves foreign military and defense help but also includes technical, educational and other cooperation. This help can be given to foreign governments, military forces, business groups or charitable groups like the United Nations or other non-governmental organizations.

America is constantly increasing its stance on Pakistan. Last month, the administration of Donald Trump stopped Pakistan’s assistance of $ 2 billion. Pakistan refuses to support terrorists in Afghanistan and India. He has also expressed displeasure on America’s warnings. Although the Pakistani government is concerned about the FATF’s action as the verdict can harm the banking sector there. Its impact will be on the economy of the country. Elections will be held soon in the country.

According to some studies, 1.3 percent of the total federal budget of the United States provides a help. But the helping figure varies every year. According to the experts, after the Second World War, the US gave a big boost to European economies.

In the 1990s, similar help was given to the Soviet Union which was later reduced. After the 9/11 attacks, the limit of help extended. According to experts, this helped increase the help given by George W. Bush in Iraq and Afghanistan and due to the global health program.

According to the data of 2015, 38 percent of the total help is given in the form of long-term development assistance. It is given to the poor countries of the world who have a weak economy and at the same time have been backward in health standards.

15 percent of this goes to the World Bank and United Nations Development Program. Apart from this, 35 percent of the military and defense assistance is included, 16 percent is included in humanitarian aid such as an earthquake, drought, war etc. and 11 percent political help.

About 21 agencies are involved in the management of US foreign aid. But according to the law of 1961, the US government created the United States Agency for International Development (USAID). This is a semi-independent agency that works under the directions of the President, Interior Ministry, and the National Security Council. However, all other agencies also manage overseas help.

America gives help to more than 200 countries of the world. According to the 2015 data, the main countries are Afghanistan, Israel, Iraq, Egypt, and Jordan. According to the Washington Post report, a large portion of aid is provided to Afghanistan due to security reasons, while military help is given to Israel. Egypt and Iraq are also given protection in the matter of security.

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