The $500 million economic assistance will be provided by the Asian Development Bank (ADB) to Pakistan in the coming days. The aid was in the pipeline for a number of days. Meanwhile, the International Monitory Fund (IMF) has also planned to give a serious input for the betterment of the country's economy.
Asif Zardari and George Bush had been in active contacts during the former's stay in the US till the end of the last year. The sources said that the world financial institutions suggested to Pakistan to take tough decisions to improve its economy. Pakistan will be asked to tighten its belt further as austerity in the government expenditures would be proposed to reduce expenses so that the government should be in a position to provide much needed relief to the common man.
NATO feels pain in Kabul after Pakistan turns off spighot (click for read more)
Now the Pakistanis have turned the spighot off. Water, oil, bullets, medicines are not not flowing into Afghanistan via Pakistan. The US a few weeks ago was exploring alternative routes to Kabul through Russia. In the post Gerogia world, that may not be possible. American convoyes running from Chahbahar to Kabul may not be possible.
The suspended logistical support to US forces can have a huge impact on the war in Afghanistan. Every sip of water that the ISAF and NATO forces drink, every meal that the American soldiers eat, every gallon of gas for the vehicles used by the European, every bullet that is fired comes through Pakistan. Any delay in the supplies can have catastrphic impacts on the war in Karzai. If Pakistan allows the insurgents to attack the convoys, the Afghan war will come to a screeching halt