Trump’s Executive Order Halts US Aid to Pakistan, Major Projects Stalled

USAID initiatives in energy, health, and cultural preservation paused as the US reevaluates foreign assistance.

January 29, 2025: Islamabad:
The United States has temporarily suspended foreign assistance to Pakistan following an executive order issued by President Donald Trump, as reported on Tuesday. The decision has resulted in the immediate halt of key United States Agency for International Development (USAID) projects in Pakistan, including initiatives promoting cultural preservation and energy development.

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Among the affected projects is the Ambassadors Fund for Cultural Preservation (AFCP), a flagship program aimed at safeguarding Pakistan’s cultural heritage, including historic sites, traditional crafts, and indigenous languages. A US embassy spokesperson described the fund as essential for protecting global cultural assets.

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The suspension also impacts five energy-related projects, including the Power Sector Improvement Activity, Pakistan Private Sector Energy Activity, and the Pakistan Climate Financing Activity. Several economic growth initiatives, such as the Social Protection Activity scheduled to conclude in 2025, have been paused, along with projects in health, education, agriculture, and disaster resilience.

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A US consulate official in Karachi confirmed the pause, stating it aligns with Trump’s executive order to reevaluate foreign aid. The directive mandates a reassessment of all US foreign assistance to determine its alignment with national interests.

The total financial impact remains unclear, as officials in Pakistan have yet to confirm the development or assess the extent of disruptions. Meanwhile, fears loom that some halted projects may face permanent cancellation or significant reductions.

US State Department spokesman Tammy Bruce recently highlighted that all aid funded through the State Department and USAID is under review. Secretary of State Marco Rubio emphasized that foreign assistance must answer three core questions: “Does it make America safer? Does it make America stronger? Does it make America more prosperous?”

The freeze reflects Trump’s broader foreign policy priorities, placing Pakistan’s relationship with the US under increased scrutiny as ongoing projects across sectors face an uncertain future.