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The U.S. Agency for International Development (USAID) has temporarily suspended all funding for programs in Pakistan following the Trump administration’s decision to halt foreign aid globally on January 20, with exceptions only for Egypt and Israel.
This move has raised concerns among international aid organizations and governments reliant on U.S. assistance.
President Donald Trump’s executive order, titled “Re-evaluating and Realigning United States Foreign Aid,” prompted Secretary of State Marco Rubio to issue a memo freezing all foreign aid for a 90-day reassessment period, excluding aid to Israel and Egypt. This decision has significantly impacted USAID’s operations in Pakistan.
USAID Programs in Pakistan
According to the U.S. government’s Foreign Assistance website, disbursements to Pakistan dropped from $169.8 million in 2023 to $116.5 million in 2024.
In 2024, key sectors receiving assistance included basic health ($21.53 million), disaster prevention and preparedness ($14.01 million), business and other services ($13.34 million), energy ($12.04 million), conflict, peace, and security ($11.7 million), government and civil society ($6.608 million), agriculture ($4.823 million), emergency response ($3.3 million), and multi-sector programs ($5.003 million), while operating expenses accounted for $15.6 million.
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The suspension has impacted 11 governance programs in Pakistan, as well as initiatives under the Ambassadors Fund for Cultural Preservation. Additionally, five energy projects, four economic growth initiatives, five agricultural programs, and multiple education and health projects have been put on hold. Funding for democracy, human rights, and governance programs has also been suspended, pending further review.
Ongoing projects
- Pakistan Agriculture Programs – II
- Gomal Zam Dam Command and Development Project
- Water Management for Enhanced Productivity (WMEP)
- Investment Promotion Activity (IPA)
- Pakistan Regional Economic Integration Activity (PREIA)
- Commercial Law Development Program in Pakistan (CLDP)
- Pakistan Private Investment Initiative (PPII) – Indus Basin Holding