Pakistan’s Aid Cut: A Temporary Setback or a New Start?

The United States Agency for International Development (USAID) has suspended all funding for programs in Pakistan following an executive order by President Donald Trump to halt foreign aid, with exceptions only for Israel and Egypt.

In an official email response, the U.S. Embassy in Islamabad stated:

“Thank you for your message concerning President Trump’s executive order on re-evaluating and realigning U.S. foreign aid. We have been asked to refer all media queries on the President’s Executive Orders to the White House.”

The executive order, issued on January 20, prompted Secretary of State Marco Rubio to impose a 90-day freeze on all foreign aid disbursements, pending reassessment.

Declining U.S. Aid to Pakistan

According to data from the U.S. government’s Foreign Assistance website, financial assistance to Pakistan has seen a sharp decline:

• 2023: $169.8 million
• 2024: $116.5 million

The primary sectors receiving U.S. aid in 2024 included:

• Basic Health – $21.53 million
• Disaster Prevention & Preparedness – $14.01 million
• Business & Other Services – $13.34 million
• Energy – $12.04 million
• Conflict, Peace & Security – $11.7 million
• Government & Civil Society – $6.6 million
• Agriculture – $4.82 million
• Emergency Response – $3.3 million
• Other Multi-Sector Support – $5 million
• Operating Expenses – $15.6 million

Impact on Pakistan’s Development Programs

Despite the funding freeze, Pakistan is set to launch the $77.8 million ‘Recharge Pakistan’ project on February 10, aiming to enhance climate resilience and water management. The extent to which the aid suspension will affect such projects remains unclear.

Trump’s Stance on Pakistan’s Aid

This decision aligns with Trump’s long-standing criticism of U.S. financial support to Pakistan. During his first presidency, on January 2, 2018, Trump posted on X (formerly Twitter):

“The United States has foolishly given Pakistan more than $33 billion over 15 years and received nothing but deceit and lies in return. They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more!”

The 90-day review period will determine the future of U.S. aid allocations. As Pakistan navigates this uncertainty, policymakers and development stakeholders will closely monitor how this suspension impacts economic and humanitarian initiatives.