PUBLISHED
March 02, 2025
KARACHI:
Since 2001, the United States Agency for International Development (USAID) has been supporting many programmes in Pakistan and in the rest of the region as well. Non-governmental organisations and many educational, health, and social development projects highly depend upon funding. In 2024, the funds from USAID to Pakistan alone were 210 million dollars, covering several projects. Therefore, US President Donald Trump’s recent freeze for US funds has shocked the world.
The Trump administration has begun dismantling USAID, creating uncertainty in the international development community. It has resulted in an immediate halt on foreign aid. This decision has a significant impact on nations including Pakistan, where USAID has played a key role in providing money and support for a large number of programmes in the social, health, and educational sectors.
On February 24, 2025, the Trump administration declared that USAID was almost finished being dismantled, putting international staff on leave and preparing to eliminate roughly 2,000 jobs in the US.
Development setback
Several programmes that, after the freezing of the funds, have shut down their offices and stopped paying their employees.
The Water and Sanitation Extension Programme (WASEP), which was started in 1997 by the Aga Khan Planning and Building Service, is one noteworthy project that is in danger. Waterborne infections have been greatly reduced in underprivileged communities, thanks to WASEP’s provision of clean drinking water and sanitary facilities. More than 165,000 people in Sindh province and the Northern Areas of Pakistan have benefited from the initiative. The future of these programmes is in jeopardy due to the termination of USAID financing, which could undo the decades-long progress made in fighting waterborne diseases.
Programmes financed by USAID have provided significant help for education in Pakistan over the years, with billions of dollars invested in uplifting educational reforms as well, especially in isolated and underprivileged areas. Many literacy and infrastructural development projects, such as those that sought to enhance teacher preparation, supply educational resources, and build or renovate schools, have been put on hold as a result of the funding suspension. One major recipient of this assistance has been the Aga Khan Education Services (AKES), which runs more than 190 schools in Pakistan with over 37,000 students enrolled. These educational institutions have been instrumental in advancing education, particularly for northern girls. The budget freeze puts these educational services in danger of ceasing to exist, which might prevent thousands of children from receiving a good education and impede the nation’s efforts to achieve educational parity.
From infrastructure development to governance and human rights advocacy, USAID’s engagement in Pakistan’s social sector has taken several forms. For example, the Sarhad Rural Support Programmeme (SRSP) has focused on microfinance, community infrastructure, gender development, and social mobilisation. Programmes focused on social sector services, renewable energy initiatives, and community development risk an unclear future as a result of USAID money being withheld. Increased unemployment, particularly among those working on USAID-supported projects, could result from this interruption, which could further impede efforts to reduce poverty and advance rural development.
NGOs struggle to stay afloat
Beyond just the immediate loss of programmes, the suspension of USAID assistance poses a serious threat to Pakistan’s larger socioeconomic structure.
Due to their heavy reliance on USAID assistance, local NGOs and partner institutions are currently facing operational and financial challenges. Numerous businesses have been forced to reduce staff or shut down completely, which has resulted in the loss of many jobs and the interruption of necessary services. Workers in the construction industry, which profited from USAID-funded infrastructure projects, have been let go as contracts expire. USAID-backed agricultural projects have been shelved, endangering both the lives of many farmers and food security.
Foreign investor trust is also likely to be damaged by the sudden halt in development operations, which could result in less investments in vital areas.
Increased pressure on the government to fill the void left by the aid withdrawal might put a strain on public resources and possibly force cuts in other crucial sectors. Furthermore, disadvantaged communities now have less support as a result of the suspension of humanitarian assistance programmes, which raises the possibility of poverty and social instability.
The USAID funding suspension has significant long-term effects. The suspension of programmes centred on governance, democracy, and human rights may hinder Pakistan’s democratic progress and human rights advocacy. The end of these initiatives could result in a governance void, which would make it difficult to enforce the legislation and carry out changes. “Our office had to shut down overnight when the fund’s freeze were announced and we didn’t know what to do or how to pursue the projects and cases that are already there,” said Shahmeer*, who lost his job and was told by the officials that they cant pay his salary until after the 90-days decision period announced by Trump. Shahmeer and 200 fellow colleagues were left with nothing and nowhere to go. News of shutting down offices due to the fund freeze travelled faster than the speed of light in the development sector and the options they had were very limited, while recruiters exploited the situation to their own benefit.
Healthcare and education at risk
Millions of Pakistanis will suffer greatly as a result of the USAID funding freeze, especially in vital areas like social development, infrastructure, health, and education. Due to a shortage of funding, many USAID-funded hospitals and clinics, especially those in rural and poor areas, may close, limiting access to necessary medical care. “USAID was instrumental in promoting maternal and child health initiatives. Thousands of women can experience difficulties during pregnancy and childbirth if they don’t have access to adequate medical treatment, and if vaccination initiatives against polio, TB, and hepatitis are discontinued, the number of illnesses may increase, which will create another problem for Pakistan’s health sector to cater to,” said a USAID maternal and child health programme officer. Since many healthcare facilities depend on USAID-funded supplies, a freeze could result in a shortage of medications, which would prevent the poor from accessing treatment.
In addition to disrupting services, the abrupt termination of important health, education, and social sector projects also jeopardises years of progress made where local communities and the assistance of other foreign partners will be essential in reducing the negative consequences of this decision. “We worked day and night on projects worth millions with beneficiaries and thousands where the idea to provide education and state-of-the-art facilities were our main goal. But the fund freeze not only halted the services, but long-term disruption can impact the efforts worth decades,” said Amjad Ahmed who has been working with educational projects for 12 years.
USAID has funded the construction of schools and teacher training programmes. Ceasing of funds could result in school closures that would impact thousands of children. Many programmes that support girls’ education could be suspended, which would lower female literacy rates and impede gender equality in education. “My daughter studies in the USAID school in Khairpur, which is in collaboration with the Government of Sindh. The only reason why I enrolled her there was that it had the USAID name. Now I am not sure what the future holds,” said Khuda Bux, who has four daughters, three of them studying in USAID schools.
Thousands of workers in programmes financed by USAID, such as social workers, teachers, engineers, and healthcare professionals, could lose their jobs, which would raise unemployment.
US aid not only uplifted but also provided a certain standard through these projects that played a significant role in supplying better lifestyles and ways to operate. Several initiatives promoting social justice, gender equality, and women’s rights may be discontinued, impacting underprivileged populations.
Millions of individuals in Pakistan are being impacted by the USAID aid freeze be it in terms of jobs or beneficiaries, particularly in disadvantaged and marginalised communities. Finding alternate funding sources is essential for Pakistan since the loss of USAID aid might reverse years of progress in areas ranging from health and education to economic growth and governance.
