By In a significant policy shift, the United States has suspended aid projects worth over $845 million in Pakistan, following President Donald Trump’s directive to cut funding for the United States Agency for International Development (USAID) projects worldwide. This decision has led to the immediate halt of 39 major USAID-funded initiatives across various sectors, including energy, economic development, agriculture, democracy, human rights and governance, education, health, and humanitarian assistance.
Among the most impacted projects is the Integrated Health Systems Strengthening and Service Delivery Integrated Health System Program, an $86 million initiative aimed at bolstering Pakistan’s healthcare infrastructure. The suspension also affects the Global Health Supply Chain Program, valued at $52 million, which was designed to ensure the availability of essential medical supplies. In the education sector, the Merit and Needs-Based Scholarship Program, worth $30.7 million, intended to support underprivileged students pursuing higher education, has been put on hold.
The decision extends to development efforts in the recently merged tribal areas. The Merged Areas Governance Program for former FATA, valued at $40.7 million, aimed at improving governance and administrative systems, has been suspended. Additionally, the Building Peace in Pakistan program, worth $9 million, which sought to foster religious, ethnic, and political harmony, is now on hold. The freeze also halts the Pakistan Private Investment Initiative program, valued at $43.5 million, which focused on generating employment opportunities.
One of the most critical projects affected is the Mangla Dam Rehabilitation Project, a $150 million initiative essential for Pakistan’s energy and water security. The suspension of these aid programs is part of a broader restructuring of U.S. foreign assistance under President Trump’s “America First” policy, which seeks to consolidate USAID into the State Department to reduce government expenditure and redirect funds towards domestic priorities. Established in 1961 under President John F. Kennedy, USAID has been a cornerstone of U.S. foreign policy, administering approximately 60% of the country’s aid budget. In the 2023 fiscal year alone, USAID disbursed $43.79 billion in global assistance, supporting development efforts in over 130 countries. The suspension of aid to Pakistan reflects a significant shift in U.S. foreign aid strategy, with potential long-term implications for bilateral relations and development initiatives in the region.
