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Trump proposes to convert US Grants to Pakistan as Loans

In what would become a major setback to the double faced Pakistan is that United States President Donald Trump has proposed in his annual budget to the Congress to convert US’ grant to Pakistan for purchase of military hardware into a loan. The State Department was asked to take a call on this.

Pakistan has always been diverting funds and aids it receives from US and other countries to fund the terror activities.

In the US the White House sends hard copies of the President’s budget proposals which would be submitted later on Tuesday for approval.

Responding to questions, Mick Mulvaney, Director of the Office of Management of Budget in the White House said the Trump administration has proposed to convert its Foreign Military Funding programme to many countries, including Pakistan, from aid to financial loan. It would however extend grants to Israel and Egypt in the form of Grants.

“The Foreign Military Funding or FMF for Pakistan may be provided in the form of a loan,” said Mulvaney.

“This is one of the options that the administration had explored in its internal deliberations, but the request itself does not make that determination,” the White House clarified later.

This is seen by analysts as a way to increase US Spending on its own military infrastructure. 

Mulvaney said “We do maintain aid to Pakistan in the budget. I don’t believe it’s at the same levels as previous,” in response to a question.

“We do change a couple of the foreign military programmes from direct grants to loans. Our argument was instead of giving somebody $100 million, we can give them a smaller number worth of loan guarantees and they can actually buy more stuff. We did not change it for Israel. We did not change it for Egypt,” he added further.

If being converted into a loan, Pakistan will be under immense pressure which has always used the funds to fuel its own ambitions of turning militants and terrorists against India especially in the border.

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