As US freezes aid, Pakistan dismisses economic fears

The United States will suspend nearly all security aid to Pakistan, the Trump administration announced on Thursday, in a sign of its frustration with the country’s refusal to confront militant networks operating there.

“The suspension is a freeze, and does not reflect intent to reprogramme funds at this time,” according to internal government talking points that were obtained by The New York Times.

The US will no longer transfer certain pieces of military equipment and security-related financial assistance to the Pakistani armed forces. “We can confirm that we are suspending security assistance to Pakistan at this time,” State Department spokeswoman Heather Nauert said.

The cutoff is not permanent, Nauert said, and only affects military assistance. Nauert was not immediately able to provide a total dollar amount for the cutoff. “We are still working through the numbers,” she said.

Nauert told reporters that the suspension will remain in effect until Pakistan “takes decisive action” against groups such as the Taliban that are “destabilising the region and targeting US personnel.” Although Pakistan “certainly has been helpful in some instances,” she said, “they are not taking steps they need to take to fight terrorists.”

The spokesperson warned of further steps if Pakistan did not act against the militant groups. “The United States will not deliver military equipment or provide security assistance to Pakistan unless required by law,” the spokesperson said.

The Trump administration had delayed $255 million in State Department aid until Islamabad did more to crack down on terrorism. Relations between the United States and Pakistan have deteriorated since the summer, when President Trump accused the country of giving “safe haven to agents of chaos, violence and terror.”

The suspension includes Coalition Support Funds for Pakistan, which is provided by the Pentagon to help pay the costs of Pakistan’s counterterror operations. However, Ms Nauert added, “There may be some exceptions that are made on a case-by-case basis if determined to be critical to national security interests.”

The United States has provided Pakistan more than $33 billion in aid since 2002.

Analysts say there are limits to how much the US can fracture relations, since Pakistan cannot be isolated or completely sidelined, because of its proximity to, and influence in, Afghanistan.

“There is really no way forward for the United States in Afghanistan without Pakistan playing some kind of cooperative and collaborative role,” said Huma Yusuf, a Wilson Center Global Fellow.

Earlier, the Trump administration accused Pakistan of severe violations of religious freedom in a further sign of deteriorating relations.

The State Department has announced that it’s placing the South Asian nation on a special watch list, pursuant to 2016 legislation.

The step is not thought to carry serious consequences, but it comes in the wake of stiff criticism from President Donald Trump this week.

On Monday, Trump reiterated US concerns that Pakistan provides safe havens for militants, saying it had played US leaders for “fools.” The administration is currently holding up $255 million in military assistance for Pakistan until it cracks down on extremists threatening Afghanistan.

A press release of the State Department on Thursday says: “In far too many places around the globe, people continue to be persecuted, unjustly prosecuted, or imprisoned for exercising their right to freedom of religion or belief. Today, a number of governments infringe upon individuals’ ability to adapt, change, or renounce their religion or belief, worship in accordance with their religion or beliefs, or be free from coercion to practise a particular religion or belief.”

The statement also re-designated Burma, China, Eritrea, Iran, North Korea, Sudan, Saudi Arabia, Tajikistan, Turkmenistan, and Uzbekistan as “Countries of Particular Concern” — an annual practice according to the International Religious Freedom Act of 1998.

Being on the watch list means Pakistan is a step away from being included in the “Countries of Particular Concern” list.

The list includes “governments that have engaged in or tolerated systematic, ongoing, and egregious violations of religious freedom.”