Trump’s Directive Suspends $845 Million Aid Projects in Pakistan

Staff Reporter

Following the directive of U.S. President Donald Trump, the United States has suspended over $845 million worth of aid projects in Pakistan. This is part of the global funding cuts for U.S. Agency for International Development (USAID) projects.

A total of 39 major USAID-funded projects in Pakistan, working in various sectors, have been suspended. These projects included initiatives in energy, economic development, agriculture, democracy, human rights and governance, education, health, and humanitarian assistance.

The majority of these projects were either fully or partially funded by USAID, and their suspension has caused local NGOs and organizations to face difficulties in continuing their operations. Many of them are struggling to maintain their work due to the withdrawal of promised funds.

One of the significant projects affected was the “Integrated Health Systems Strengthening and Service Delivery Integrated Health System Program,” which had a budget of $86 million. This project aimed to strengthen Pakistan’s healthcare system.

Another key project, the “Global Health Supply Chain Program,” which had a budget of $52 million, was designed to ensure the availability of essential medical supplies. In education, the “Merit and Needs-Based Scholarship Program,” valued at $30.7 million, was meant to assist underprivileged students in pursuing higher education.

Additionally, the “Inclusive Democratic Processes and Governance,” with a budget of $15 million, was aimed at enhancing democratic governance and transparency.

The suspension has also impacted development initiatives in the recently merged tribal areas. The “Merged Areas Governance Program” for improving administrative systems in former FATA, with a budget of $40.7 million, has been put on hold, as has the “Building Peace in Pakistan” program, which had a $9 million budget aimed at fostering religious, ethnic, and political harmony.

The “Pakistan Private Investment Initiative,” valued at $43.5 million and focused on creating employment opportunities, has also been suspended.

Among the most critical projects affected is the “Mangla Dam Rehabilitation Program,” a $150 million initiative crucial for Pakistan’s energy and water security.

This decision to suspend the aid projects is part of a broader restructuring of foreign assistance under Trump’s “America First” policy.

USAID, established in 1961 under President John F. Kennedy, has long been a key part of U.S. foreign policy. In the 2023 fiscal year, USAID distributed $43.79 billion in global assistance, supporting development efforts in more than 130 countries. However, the Trump administration is now seeking to consolidate USAID into the State Department in an effort to reduce government expenditure and redirect funds toward domestic priorities.