In a decision last week, President Trump announced a suspension of $255 million due to Pakistan for military equipment and training. Also he proclaimed a suspension of another $700 million under the Coalition Support Fund. These monies are paid to Pakistan for conducting operations against militant groups. This is not all, the US state department has said that an unspecified amount of other security assistance programs managed by the department of defense could be cut.
So how is going to effect Pakistan?
As of September 2017, Pakistan’s fiscal deficit accumulated to a whopping 5.8 per cent of gross domestic product (GDP) and reached Rs 1.864 trillion mark in absolute terms, the highest in the country’s 70-year history. Many insiders believe that the funds received from the U.S.A. were to be targeted to counteract this trend. Now with the lack of U.S.A. aid, many people are saying that the Pakistanis will turn to China for aid support. However that maybe wishful thinking.