US temporarily suspends aid to Pakistan; several projects on pause

Jan 28, 2025

Karachi [Pakistan], January 28 : The United States has paused Pakistan's foreign assistance for re-evaluation, Geo News reported citing after an official at the US Consulate in Karachi confirmed the news to them.
This has brought a halt to projects across several fronts ranging from the health sector, and agriculture to education.
The US has paused Pakistan's foreign assistance for re-evaluation as per an executive order issued by President Donald Trump, an official at the US Consulate in Karachi recently confirmed to Geo News.
Geo News reported that without mentioning any country, Tammy Bruce, spokesman for the US Department of State, has also issued a statement in this regard.
"Consistent with President Trump's Executive Order on Reevaluating and Realigning United States Foreign Aid, Secretary Rubio has paused all US foreign assistance funded by or through the State Department and US Agency for International Development (USAID) for review," Bruce said, as reported by Geo News.
The move has instantly stopped several USAID projects in Pakistan, including the Ambassadors Fund for Cultural Preservation (AFCP) which is the flagship programme to promote cultural heritage preservation and protection.
Additionally, five projects related to the energy sector have also come to a halt as a result of this decision. As per Geo News, these include the Power Sector Improvement Activity, Pakistan Private Sector Energy Activity, Energy Sector Advisory Services Project, Clean Energy Loan Portfolio Guarantee Program and Pakistan Climate Financing Activity.
Notably, economic growth-related four projects are also hit. Among them, Social Protection Activity was the only programme supposed to end in 2025.
Others include Investment Promotion Activity, Pakistan Private Investment Initiative and Economic Recovery and Development Activity. Geo News noted that the USD 24.8 million FATA Economic Revitalisation Programme, implemented by the United Nations Development Programme has already been completed.
In the agriculture sector, the Gomal Zam Command Area Development Project was completed in 2024. However, two of the five programmes were expected to end in 2025.
They include Water Management for Enhanced Productivity and Pakistan Agriculture Programmes II. Yet, Livelihood and Food Security Activity for Khyber Pakhtunkhwa and the Flood Affected Districts of Pakistan, Climate Smart Agriculture and Recharge Pakistan are also affected, Geo News said.
Projects Democracy, Human Rights and Governance funds are also hit by Trump's order.
As per Geo News, four of these 11 projects were expected to be completed in 2025. However, a USD 19.1 million project to strengthen Electoral and Legislative Processes was just completed in 2024.
The other projects include Building Peace in Pakistan, Land Registration in Merged Areas Activity, Community Resilience Activity-North, Merged Areas Governance Programme, Inclusive Democratic Processes and Governance, Hum Ahang, Building Understanding and Involvement in Local Governance and Democracy, Subh-e-Nau, Justuju and Water Governance for Sindh.
In the education sector, one of the four projects, Improving Girls Education Activity, was expected to be completed in 2025. A similar programme, Higher Education System Strengthening Activity and Education Resilience Activity, that focused on Sindh and KP are also halted, according to Geo News.
In the health sector, Integrated Health Systems Strengthening and Service Delivery, Tuberculosis Local Organisation Network, Tuberculosis Implementation Framework Agreement, Building Healthy Families and Global Health Security Program are paused.
The White House, in its statement, noted that the pause which is for a period of 90- days will see a review. "All department and agency heads with responsibility for United States foreign development assistance programs shall immediately pause new obligations and disbursements of development assistance funds to foreign countries and implementing non-governmental organizations, international organizations, and contractors pending reviews of such programs for programmatic efficiency and consistency with United States foreign policy, to be conducted within 90 days of this order. The Office of Management and Budget (OMB) shall enforce this pause through its apportionment authority".

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