The U.S. President has recently made an announcement, threatening to stop financial assistance to Pakistan.
What is US's stance?
The US has accused Pakistan of providing safe havens to the terrorists that US is striving to root out in Afghanistan.
There was significant scaling down of U.S assistance to Pakistan in the later years of the Obama administration.
The U.S has also made disbursement of Pentagon’s Coalition Support Funds (CSF) more stringent.
CSF is the reimbursement to Pakistan for logistical and operational support of U.S-led military operations.
A decision by the Trump administration on CSF for 2017 is pending.
Notably, US was insisting Pakistan to hand over a Haqqani Network operative who kidnapped an American-Canadian couple and held them hostage.
It was also “contemplating withholding” aid if Pakistan’s response to the demand was not satisfactory.
Besides shutting down terror havens, the US wants Pakistan to use its influence on those terror organisations in negotiations with the Afghan government to hold peaceful elections.
What are the implications?
Pakistan - Pakistan has maintained that it would officially respond to Trump's allegations.
With Pakistan already caught up in a civil-military crisis in recent months, Trump's move has caused new disruptions.
The real catastrophe in Pakistan is the cynical use of Islamist extremism by the security establishment to hold democracy hostage.
Until this changes, there is scant hope Pakistan will take control of terrorism.
China - It is possible that Pakistan will reach out to China to alleviate the potential economic hardship due to US's decision.
Notably, China holds that Pakistan had made enormous efforts and sacrificed for the fight against terrorism.
It defended Pakistan, saying the world community should acknowledge Pak's “outstanding contribution” to counter terrorism.
China has reasserted Pakistan as its all-weather partner and expressed its readiness to promote and deepen all-round cooperation.
Notably, China is currently investing heavily in Pakistan as part of China Pakistan Economic Corridor (CPEC).
Roping in Afghanistan, Beijing announced plans to extend the CPEC to Afghanistan as well.
But, Afghanistan accuses Pakistan of sheltering Taliban militants.
However, China is seeking to mediate between the two neighbours through the trilateral mechanism.
