Press Trust of India
Washington, May 23: US 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 White House said.
However, the Trump administration has left it for the State Department to take a final call on the proposal. The maiden annual budget of the Trump administration would be submitted to the US Congress later Tuesday. 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 (FMF) programme to many countries, including Pakistan, from aid to financial loan. “The Foreign Military Funding or FMF for Pakistan may be provided in the form of a loan,” said Mulvaney. “We do maintain aid to Pakistan in the budget. I don’t believe it’s at the same levels as previous,” he said in response to a question. The details of the FMF to Pakistan and other countries are expected to be released by the State Department later.
Whether the funding is provided through grants, or as a subsidy for a guaranteed loan, is an option the State Department can exercise to ensure our foreign assistance best supports US’ national interests, the White House added. The move is seen as part of the Trump administration’s efforts to cut foreign aid budgets to help pay for increased US military spending.