US suspends aid to Pakistan, halting major projects across key sectors: report

Governance, energy, and health initiatives among sectors affected

The United States has suspended aid to Pakistan, resulting in the temporary halt of several major projects across governance, energy, education, and health sectors.

This move follows President Donald Trump’s directive to review foreign assistance programmes to ensure alignment with his administration’s foreign policy objectives.

According to a US State Department cable seen by Reuters, the decision has affected 11 governance programmes in Pakistan, alongside initiatives under the Ambassadors Fund for Cultural Preservation (AFCP). The cable, prepared by the State Department’s foreign assistance office and approved by Secretary of State Marco Rubio, confirmed a “stop-work” order for ongoing aid and a pause on new funding.

While waivers for military financing have been granted to two Middle Eastern nations, including Egypt, no exceptions were mentioned for Pakistan. The suspension impacts five energy projects, four in economic growth, five in agriculture, and several others in education and health. Democracy, human rights, and governance funds have also been put on hold, pending a review.

The US, as the world’s largest donor of aid, disbursed $72 billion in assistance in fiscal year 2023. However, the pause on programmes in Pakistan could delay billions of dollars in critical life-saving assistance. US officials are expected to determine the future of these programmes after completing their review.

Former USAID official and president of Refugees International, Jeremy Konyndyk, criticised the decision, warning of its severe consequences. “This will kill people. If implemented as written, a lot of lives will be lost,” he said. Konyndyk dismissed the move as a destructive approach rather than a genuine review of foreign assistance, calling it “a wrecking ball to break as much as possible.”

Monitoring Desk
Monitoring Desk
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