US to invest $101 million in Pakistan to strengthen democracy

US Assistant Secretary for South and Central Asia Donald Lu has said that the US intends to allocate $101 million in fiscal year 2025 to bolster democracy in Pakistan, combat militancy, and reduce Islamabad's dependence on China.

This budget request was presented to the House of Representatives Foreign Affairs Committee on July 23, Caliber.Az reports citing the foreign media.

Lu outlined this funding as part of a broader $1.01 billion budget proposal for the region. This amount reflects a 1.9 per cent decrease from the fiscal year 2023 budget. These budget requests and policy proposals are integral to the legislative process, aimed at informing and persuading lawmakers about the significance of these expenditures and policy directions.

“Pakistan presents both challenges and opportunities,” the official told the House Foreign Affairs Committee. “The president’s Budget proposes a flat allocation of $101 million for Pakistan.”

“This funding will be directed towards strengthening democracy and civil society, combating terrorism and violent extremism, and supporting economic reforms and debt management to stabilize Pakistan’s economy and reduce its dependence on China,” he added.

The US official, who faced criticism from former Pakistani Prime Minister Imran Khan’s party for allegedly contributing to his administration's downfall—an accusation Washington denies—acknowledged the difficulty of competing with China in the region, which is actively seeking military and commercial footholds in the Indian Ocean.

He also highlighted that the US administration is working within a framework of limited budgets.

“Our most effective strategy to counter an assertive PRC is to show that we offer superior alternatives—better development opportunities, more favourable commercial deals, and more effective solutions to security challenges,” the official added.