Projects put on hold after US halts Foreign Aid to Pakistan

The US has temporarily suspended foreign aid to Pakistan, affecting critical health, education, energy, and agriculture projects.

Projects put on hold after US halts Foreign Aid to Pakistan f

This has left uncertainty about their completion timelines.

The United States has temporarily suspended foreign aid to Pakistan, halting numerous critical projects across various sectors.

This includes health, education, agriculture, and energy.

This suspension is part of a broader review of US foreign assistance programmes initiated under President Donald Trump’s directive.

The 90-day pause aims to reassess aid alignment with US foreign policy objectives, affecting Pakistan and other countries.

The suspension has immediately impacted several US-funded initiatives in Pakistan.

Key programmes, such as the Ambassador’s Fund for Cultural Preservation, five energy-related projects, and multiple agriculture and governance initiatives, have been put on hold for now.

In addition, four education and four health projects, along with 11 democracy and governance programmes, are currently on hold.

These programmes were instrumental in supporting critical areas such as economic growth, cultural preservation, and social development.

Projects affected in the energy sector include the Power Sector Improvement Activity and Pakistan Private Sector Energy Activity.

Meanwhile, agriculture initiatives like Climate Smart Agriculture and Recharge Pakistan have also been disrupted.

Education programmes, such as the Improving Girls Education Activity and Higher Education System Strengthening Activity, have been paused.

This has left uncertainty about their completion timelines.

In the health sector, the likes of the Tuberculosis Local Organisation Network and the Global Health Security Programme are also affected.

The move has drawn criticism from various quarters.

Former USAID official Jeremy Konyndyk labelled the suspension as potentially devastating, warning that it could lead to loss of lives due to delays in critical aid delivery.

He described the decision as a “wrecking ball” to foreign assistance rather than a constructive review.

Critics fear that the halt in programmes could undermine long-term development goals in Pakistan and strain diplomatic ties further.

The Trump administration defended the suspension, with the State Department emphasising the need for foreign assistance to align with American interests.

In a statement, the White House noted that it would allow for a comprehensive evaluation of efficiency and relevance to US policy.

This suspension comes as Pakistan grapples with economic challenges, including rising inflation and reduced purchasing power for its citizens.

Former Finance Minister Miftah Ismail recently highlighted the country’s struggles, noting that nearly 40% of the population lives below the poverty line.

The 90-day review period may lead to a resumption or restructuring of aid programmes.

However, the immediate impact has raised concerns about the sustainability of ongoing initiatives and their long-term implications for Pakistan’s development.

Ayesha is our South Asia correspondent who adores music, arts and fashion. Being highly ambitious, her motto for life is, "Even the Impossible spells I'm Possible".





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