US cuts Pakistan aid to $174 million

US will provide Pakistan only $174 million for the budgetary support during 2009-10 out of $1.5 billion annual assistance under the Kerry-Lugar bill, reported a private TV channel Thursday. The rest of the money will be spent through US institutions. Obama Administration has conveyed the decision to Pakistani officials that it will spend $1.32 billion through its institutions. Pakistani officials have objected to this mode of aid while officials from both the sides are trying to resolve the issue. US wants to spend the said money without any intervention from the Pakistan Government while Pakistan says it should have the mandate to spend it. According to the Ministry of Finance, it has informed the US that if it doesn't provide Pakistan with the promised money, there is no substitute arrangement to fill the vacuum.

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