US Assistant Secretary of State Donald Lu announced on Tuesday that the administration is seeking $101 million for Pakistan to “strengthen democracy, fight terrorism, and stabilize the economy.” This request was presented as part of a broader $1.01 billion foreign assistance budget for South and Central Asia, aimed at competing with China, countering disinformation, and preventing terrorist threats.
The proposed funds would be allocated to support economic reforms, debt management, and efforts to enhance democracy and civil society in Pakistan. Lu emphasized that the US aims to reduce Pakistan’s reliance on China by offering alternative support, highlighting that the US considers itself the future of investment compared to China’s past contributions.
China, Pakistan’s third-largest source of development finance, has previously provided $70.3 billion, mostly in loans rather than grants. China also rolled over $2.4 billion in loans to help Pakistan during a financial crisis last year.
