US reduces financial aid to Pakistan

Islamabad, Jan 27: The USD 156 million aid claim by Pakistan towards its war on terrorism was rejected by the US auditors and in the wake, US deducted USD 55 million and allotted only USD 101 million.

"The Pakistan government will re-submit a case for the release of the amount which has already been spent from its resources (on) the war on terror," said Shaukat Tarin, adviser to the Prime Minister on finance on Monday, Jan 26.

Tarin said increased defense spending due to tensions with India in the wake of the Mumbai terror attacks had put pressure on the national exchequer.

Pakistan's financial position will increase as the country is ought to get USD 700 million by the World Bank in February (USD 500 million) and from Asian Development Bank (USD 200 million).

The country recently received a loan of USD 500 million from China and USD 100 million from the ADB.

OneIndia News (With inputs from Agencies)