President Joe Biden administration demanded $101 mn aid for Pakistan

Official of US President Joe Biden administration, Donald Lu demanded $101 mn aid for Pakistan to fight terrorism, support economic reforms, and relieve debt.

Donald is the US Assistant Secretary for South and Central Asia. He put this demand before the US House Committee on Foreign Affairs subcommittee. He emphasized that assistance is intended to support democracy and human rights. It will stabilize Pakistan’s economy.

This demand of Donald comes when Pakistan faces financial difficulties even after being granted a 37-month International Monetary Fund (IMF) program. According to Donald, this aid will promote economic reforms.

Donald Lu is dancing with the devils. pic.twitter.com/ooQah5HUOu
— Rodium-A (@RodiumInsights) July 24, 2024

This financial aid aims to strengthen the recent IMF deal that raised taxes on agricultural incomes to lower the recurrent deficit. Hence, Donald Lu (a member of the US administration) stated President Joe Biden demanded $101 mn aid for Pakistan.

It is significant to note that Donald Lu whom Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan accused of his involvement in the ouster of his government.

Donald also expressed concern over the state of women and minority groups in Afghanistan. He also emphasized the normalization of relations with the Taliban regime to protect the citizen’s rights of Afghans.

Today's @HouseForeign hearing w/ @StateDept Asst. Sec. Donald Lu set the record straight – frmr President #Trump lied about no U.S. deaths in #Afghanistan for 18 months during his presidency. That lie insults the memories of 63 U.S. servicemembers who died during his admin. (1/2) pic.twitter.com/StG8BSO7zM
— Congressman Brad Sherman (@BradSherman) July 24, 2024

Click here to read the updates on the US Congressional Committee conducting a hearing on the Pakistan election

Donald’s aid demand came after the IMF agreement at the staff level began in May. It follows Pakistan’s completion of a $3 billion, short-term program. It helped stabilize the economy and prevented a sovereign debt default. This plan set ambitious revenue targets in the national budget to receive IMF approval.

This deal raised taxes on agricultural incomes, highlighting the necessity of raising government revenue. It lowers the ongoing deficit to secure the lender’s approval.

The maximum effective tax rate can increase from the current 15% to as much as 45% under the terms of the IMF agreement. This new tax’s implementation will start in 2025. JS Global, a brokerage and investment banking firm, described the move as “unexceptional.”