US resumes funding for two key USAID programs in Pakistan

LAHORE: The United States has resumed its USAID funding to Pakistan following a suspension earlier this year, with Islamabad receiving grants under two major programs: the US Need-Based Merit Scholarships (Phase-II) and the FATA Infrastructure Program, according to a news report. 

The resumption comes after a freeze on $845 million in February 2025, imposed through an Executive Order by President Donald Trump, which had halted government-to-government (G2G) and off-budget NGO programs.

Ongoing talks between the US Embassy in Islamabad and Pakistan’s Economic Affairs Division are focused on restoring a broader range of USAID initiatives. These discussions aim to address concerns about transparency and oversight of funds allocated to NGOs. 

The resumption is seen as a step toward renewed US development engagement, with all USAID programs in Pakistan expected to restart soon.

US Secretary of State Marco Rubio confirmed that the US is reorganising foreign assistance, prioritizing essential life-saving programs, and making strategic investments to strengthen partnerships.