US President Biden proposes to double economic support fund for cash-strapped Pakistan

WASHINGTON: US President Joe Biden has proposed doubling the economic support fund for cash-strapped Pakistan to $82 million for fiscal year 2024 to help it recover from devastating floods, diversify energy supply and supporting activities aimed at building emergency preparedness capacities.
“Assistance to Pakistan will expand private sector economic growth, strengthen democratic institutions, and advance gender equity and the empowerment of women,” the State Department said.
In Pakistan, the assistance will support the country’s recovery from devastating floods, diversify energy supply and support activities to build emergency preparedness capacity, says the State Department’s budget proposal which was sent to Congress.
The budget proposes to grant Pakistan $82 million for the financial year 2024, starting in October, under the Economic Support Fund category. The support was USD 39 million in 2022.
Pakistan is also proposed to receive $17 million under the international narcotics and law enforcement category and an additional $3.5 million under the international military education and training category. The administration has also offered $32 million to Pakistan under the U.S. Agency for International Development (USAID) global health program.
Pakistan’s debt-trapped government is in a race against time to implement measures to reach a deal with the International Monetary Fund (IMF), as the country is believed to have barely enough reserves for three weeks essential imports.
The agreement with the IMF on the completion of the ninth review of a $7 billion Extended Credit Facility program – which has been delayed since late last year on a policy framework – would not only result in a disbursement of 1.2 billion, but also would release funds from friendly countries.


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