The suspension of $380 million in United States Agency for International Development (USAID) funding has halted several major development projects in Khyber Pakhtunkhwa, exacerbating the province’s financial crisis.
According to official documents, key affected projects include the Khyber Pakhtunkhwa Reconstruction Project ($100.60 million), the Gomal Zam Dam Project ($12.87 million), and the Municipal Service Delivery Project ($43.89 million). The FATA Infrastructure Project, one of the largest initiatives, stands at $102 million, while the Economic Recovery and Development Activity project is worth $24.72 million.
Other stalled initiatives include the Human Development Activity project ($15 million), the Tribal Districts Land Registration Project ($17 million), and the Integrated Health System Strengthening Project ($64 million).
The funding freeze follows a decision by the US government to suspend financial aid to multiple countries. Sources confirmed that without the resumption of funds, the provincial government will struggle to secure alternative financial resources to sustain these projects.
Khyber Pakhtunkhwa is already facing a financial crunch, with several projects under the Annual Development Program delayed due to budget constraints. Officials warned that if the province reallocates funds to continue these stalled projects, it may have to sacrifice multiple other initiatives from the annual plan.
