Giving Pakistan government a shock, the US administration has cut down a huge financial aid to the debt-ridden country. The financial aid was cut down by $440 million and the US has reduced its commitment to $4.1 billion
The financial aid was disbursed under Pakistan Enhanced Partnership Agreement (PEPA) 2010. The PEPA was signed in September 2010 to make operational the Kerry Lugar Berman (KLB) Act that was passed by the US Congress in October 2009 to disburse USD 7.5 billion to Pakistan over a period of 5 years.
This is not the first time that the aid to Pakistan was cut down by the US. Earlier in January, last year the US had cut USD 1 billion worth financial aid to Pakistan. And in September last year, the United States’ military cancelled the financial aid worth USD 300 million to Pakistan citing its inefficiency to tackle terrorism.