Aid freeze impacts health, education, agriculture, and energy sectors under President Trump’s executive order.
Karachi [Pakistan], January 28: The United States has halted its foreign assistance to Pakistan for reevaluation under an executive order issued by President Donald Trump, impacting numerous development projects across health, agriculture, education, and energy sectors.
An official from the US Consulate in Karachi confirmed the news to Geo News, stating that the pause was in line with a broader review of US foreign aid programs.
Official Statement from the US Department of State
Spokesperson Tammy Bruce of the US Department of State commented on the decision:
“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 USAID for review.”
Key Sectors Affected
The aid freeze has halted several USAID projects in Pakistan, including the flagship Ambassadors Fund for Cultural Preservation (AFCP), which focuses on cultural heritage protection.
Energy Sector
Five major projects in the energy sector have been paused, including:
- Power Sector Improvement Activity
- Pakistan Private Sector Energy Activity
- Energy Sector Advisory Services Project
- Clean Energy Loan Portfolio Guarantee Program
- Pakistan Climate Financing Activity
Economic Growth
Four key projects in economic development have also been affected, including:
- Social Protection Activity (set to end in 2025)
- Investment Promotion Activity
- Pakistan Private Investment Initiative
- Economic Recovery and Development Activity
Agriculture Sector
While some initiatives like the Gomal Zam Command Area Development Project were completed in 2024, others like the Livelihood and Food Security Activity for Khyber Pakhtunkhwa and Flood-Affected Districts and Climate Smart Agriculture have been paused.
Democracy, Human Rights, and Governance
Projects such as Building Peace in Pakistan, Land Registration in Merged Areas, and Merged Areas Governance Programme are among the affected initiatives.
Education and Health
In education, initiatives like Improving Girls Education Activity and Higher Education System Strengthening Activity have been paused. Similarly, health sector programs, including the Global Health Security Program and Tuberculosis Local Organisation Network, are impacted.
White House Statement
The White House clarified that the aid suspension is temporary, lasting 90 days, during which a review will assess program efficiency and alignment with US foreign policy. The Office of Management and Budget (OMB) will oversee the pause.
“This pause affects all obligations and disbursements to foreign countries and implementing organizations until the review’s completion,” the statement read.
This decision has raised concerns over the future of numerous development initiatives in Pakistan, with a reassessment of US-Pakistan relations taking center stage.