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The budget also imposes tougher conditions on Pakistan for military and security assistance and accommodates last minute additional White House's financial request implementing its new South Asia strategy.
During the legislative process, Cruz secured an amendment that calls on the Department of Defence to reassess its approach to partnering with India and to appoint an individual to oversee this process.
The NDAA-2018 also asks the Pentagon to develop a "forward-looking" strategy for defence ties with India "that would build upon current objectives and goals, underlining a mutual desire to develop an enduring defence relationship with India".
According to it, the two countries "should work closely with Afghanistan" to promote stability in the region to include targeted infrastructure development and economic investment, means to address capability gaps in the country, and improved humanitarian and disaster relief assistance.
In its latest conference report, the Congressional leaders said that the designation is unique to India, and institutionalises the progress made to facilitate defence trade and technology co-operation between the two nations to a level equivalent with the closest allies of the US.
"The designation promotes joint exercises, defence strategy and policy coordination, military exchanges, and port calls in support of defence cooperation between the United States and India," it said.
The NDAA-2018 also makes $350 million available to Pakistan under coalition support fund (CSF) contingent upon certification from the secretary of defence that Pakistan is taking demonstrable steps against the Haqqani Network.
refused to give such a certification to Pakistan, in the absence of Islamabad taking demonstrable and satisfactory actions against the Haqqani network.
An accompanying conference report passed by the House and the Senate notes that action on the part of Pakistan against Lashkar-e-Taiba, as well as other terrorist groups operating within the borders of Pakistan, remains a priority for the United States.
It urged the Department of Defense to closely monitor US security assistance to Pakistan, to ensure that Pakistan is not using such assistance to support terrorist groups, and "to take appropriate measures to demonstrate to the Pakistani military the consequences of continuing to support" such terrorist organisations.