The United States has granted limited relief by partially lifting its freeze on USAID humanitarian funding to Pakistan. While most foreign aid programs remain paused, a few high-priority initiatives have received exemptions—though the bulk of aid remains suspended.
What Was Resumed?
- Smaller USAID programs—mainly humanitarian in nature—were allowed to continue, but total exemptions for humanitarian aid remain below $100 million Reuters.
- The majority of resumed funds have been for security and counternarcotics programs, not humanitarian efforts.
What Is Still Suspended?
- Major development and social programs—including in health, education, agriculture, governance, and energy—have been halted. A total of 39 projects in Pakistan worth around $845 million are now on hold.
- Critical initiatives like the Merit & Needs-Based Scholarship Programme, healthcare campaigns, agricultural support, and infrastructure have been disrupted.
Local Impact:
- Over 530 Pakistani scholarship students from flood-affected regions now face uncertainty about completing their studies due to halted funding.
- More than 60 health facilities are at risk of closure, impacting millions—including 1.7 million people and many Afghan refugees—who rely on services like maternal care and HIV treatment.
Broader Policy Context:
- The aid suspension is part of former U.S. President Donald Trump’s “America First” policy, initiating a review of foreign assistance for alignment with national priorities.
- Around 83% of USAID programs globally were either suspended or absorbed into the U.S. State Department as part of a wider realignment.