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AROUND THE WORLD

demands for an outright oil embargo In September, North Korean of that money has yet been disbursed.
but went along with the latest limits. businesses in China were ordered to The freeze also covers $255 million in
Under the new restrictions, close by this month, cutting off an FMF for fiscal year 2016, which falls
Chinese companies will be allowed to important supply of foreign currency. under State Department authority and
export no more than 4 million barrels Most North Koreans who work in whose suspension has already been
of oil and 500,000 barrels of refined factories and other Chinese announced, as well as unspecified
petroleum products per year. They are businesses have been sent home. amounts of FMF that went unspent in
barred from supplying the North’s Previous sanctions banned sales earlier fiscal years.
military or weapons programs. The of natural gas to North Korea and Pakistan is largely shrugging off
new measures also ban sales of steel, purchases of the North’s textile the proposed US aid cuts but frets that
industrial machinery and vehicles. exports, another key revenue source. Washington could take more drastic
Imports of North Korean food, China also has banned imports of measures to deter what it sees as
machinery and some other goods will North Korean coal, iron and lead ore Pakistan’s support for the Taliban.
be banned. and seafood since early September. Pakistan is worried about the influence
of old rival India in Afghanistan, and
US at the same time has been battling a
Pakistani Taliban insurgency that
Trump regime suspends security aid Pakistan says was largely fueled by
its support for the US war on terrorism
to Pakistan launched after the September 11, 2001,
attacks on the United States.
The US, on 4 January 2018, said it is Pakistan to launch attacks in Donald Trump signs tax reform bill
suspending most of its security neighboring Afghanistan that have Donald Trump, on 23 December 2017,
assistance to Pakistan until it “takes killed US, Afghan and other forces. The signed into law USD 1.5 trillion tax bill,
decisive action against groups, department declined to say exactly the most sweeping overhaul in over
including the Afghan Taliban and the how much aid would be suspended, 30 years, days after the Republican
Haqqani Network”. The saying the numbers were still being plan was adopted by Congress in a
announcements from the State and calculated and included funding from major political victory for the US
Defence Departments followed a both the State and Defense President. The tax reform bill was
public condemnation of Pakistan by departments. passed by the House of
President Donald Trump on January 1. Pakistan has long rejected Representatives for the second time
The total amount in question accusations that it fails to tackle the by 224 to 201 votes to clear the
could exceed a billion dollars, though militants battling the Kabul technical snag in the passage of the
no official figure was provided. The government and US-led foreign forces package, which was passed by the
decision will delay, and perhaps in Afghanistan, from sanctuaries on Senate and House earlier.
eventually deny, pending payments to its side of the border. Trump signed the sweeping tax
Islamabad. This includes both Pakistan has criticized what it overhaul which represents the most
payments under the State called “shifting goalposts” and said drastic changes to the US tax code
Department’s Foreign Military the US suspension of aid was counter- since 1986 into law in his Oval Office
Financing and under the Coalition productive. US officials said two main of the White House. The passage of
Support Fund, which involves categories of aid are affected: foreign the bill by the Senate and House of
reimbursement by Pentagon for military financing (FMF), which funds Representatives is considered to be
Pakistan’s logistical support in the purchases of US military hardware, the first major legislative victory for
Afghanistan war. However, civilian training and services, and coalition President Donald Trump, after
assistance programmes are not support funds (CSF), which reimburse coming to power.
included and exceptions may be made Pakistan for counter-terrorism Earlier, the Republican-majority
on a case-by-case basis if they are operations. They said they could make Congress passed the tax reform bill,
“determined to be critical to national exceptions to fund critical US national which was Trump’s key election
security interests”. security priorities. promise. The bill among other things
The US State Department CSF funds, which fall under reduces income tax of individuals,
announced the decision, saying it Defense Department authority, are drops down the business tax to 21 per
reflected the Trump administration’s covered by the freeze saying Congress cent.
frustration that Pakistan has not done authorized up to $900 million in such Trump called the tax package the
more against the two groups that money for Pakistan for fiscal year “biggest tax cuts and reform in our
Washington says use sanctuaries in 2017, which ended September 30. None country.”

52 Competition Wizard March 2018