After an executive order by President Donald Trump the United States has temporarily suspended all foreign aid and halted the implementation of new aid programs. A memorandum regarding the suspension has been sent to U.S. officials and American embassies abroad. According to the document only emergency food aid and military assistance to Israel and Egypt are exempt from this order. The document states. During this period no new funds will be released nor will any existing agreements be extended unless each new agreement or extension is reviewed and approved afresh. This development follows an executive order issued by President Trump on Monday in which he ordered a 90 day suspension of foreign development aid to assess its effectiveness and alignment with U.S. foreign policy.
It is worth noting that the United States is the world's largest provider of international aid, having spent $68 billion in 2023, according to official figures. The State Department's memorandum will impact all forms of aid from developmental assistance to military aid. The directives further state that U.S. officials must immediately issue instructions to halt work on relevant agreements as per their terms until a final decision is made. According to the memo a comprehensive review of all foreign aid programs has been ordered within three months to ensure that the assistance aligns with President Trump’s foreign policy objectives. Previously U.S. Secretary of State Marco Rubio had stated that American expenditures and aid abroad would only continue if they demonstrably contributed to strengthening securing or making the United States more prosperous. A former senior State Department official said that this notice could potentially have a significant impact on U.S. aid programs.
The priority sectors for aid included emergency response government and civil society operational expenses primary healthcare energy agriculture social services and other key areas. The United States' major aid partners in Pakistan include the World Food Program (UNICEF, USAID) JSI Research & Training Institute the World Health Organization Numark Associates the UN Office on Drugs and Crime and the UN Population Fund. According to details on the U.S. Embassy’s website the United States has provided Pakistan with $32 billion in direct aid over the past 20 years. A review of U.S. documents shows that from 2001 to 2010, Pakistan’s aid saw a continuous increase rising from $175 million in 2001 to $268 million. This period coincided with the U.S. and allied forces fighting the War on Terror in Afghanistan during which Pakistan emerged as a key U.S. ally. Between 2013 and 2015, U.S. aid to Pakistan saw a slight increase but from 2018 onward it began to decline. Aid was briefly increased between 2018 and 2019, but subsequently it was reduced again. In 2023, the U.S. provided Pakistan with $170 million in aid but this amount was cut to $116 million in 2024.
According to Pakistan’s former ambassador to the U.S. Maleeha Lodhi this aid did not directly reach the people of Pakistan. Instead a significant portion was spent on partner organizations and NGOs. Ahmed Bilal Mehboob head of (PILDAT) stated that U.S. aid saw a significant decline after the withdrawal of American forces from Afghanistan. He explained that the U.S. provided aid to Pakistan through its partners and NGOs, with major projects being implemented via USAID Democracy Rights and Labor, UNSP and various UN agencies. The aid received by the Pakistani military came directly from the U.S. Department of Defense he added. According to Ahmed Bilal the aid is now suspended for three months and after that nearly half of the projects will be shut down while many agreements will undergo modifications. Previously gender inclusiveness was a mandatory part of every agreement. However it is no longer a priority for Trump as he has made it clear that he recognizes only two genders male and female. Ahmed Bilal also noted that President Trump is not particularly enthusiastic about promoting democracy. Instead of such initiatives he is expected to focus on investment and economic literacy programs.
Major U.S.funded projects in Pakistan included a $21.5 million Emergency Food Assistance Program. Additionally $10 million was allocated to health initiatives while over $8 million was spent on U.S. pay and benefits. For energy sector improvements $7.5 million was provided and $7.7 million was allocated for the development of higher education. Humanitarian aid amounted to $7 million while $6.8 million was dedicated to polio vaccination efforts. UNICEF received $5.9 million in U.S. aid for ongoing projects in Pakistan. Approximately $5.5 million was allocated for FATA (Federally Administered Tribal Areas) reforms.
Pakistan's former ambassador to the U.S. Maleeha Lodhi stated that the suspension of U.S. aid would not significantly impact Pakistan’s healthcare sector as the aid provided to Pakistan was minimal. According to Maleeha Lodhi. Pakistan has long reduced its dependence on the U.S. and now it only occasionally requires F-16 spare parts which are easily available. In response to a question Maleeha Lodhi explained that if the U.S. has assisted Pakistan in the past it has always been driven by its own interests and priorities. The important point now is that the U.S. is providing almost no assistance to Pakistan she added. Social activist Haris Khaliq who works in the development sector agrees with this view. He noted that historically U.S. government development aid has been less than 1% of its GDP on an international scale. While the aid itself is not very significant it is the broader attitude behind it that will impact the entire world. This will affect institutions and UN agencies as well he said.
According to Haris Khaliq If this decision is implemented the U.S. will gradually become isolated globally. It will prove to be detrimental to U.S. foreign policy in the short term. Haris Khaliq noted that during the Ayub era, the U.S. actively brought aid to Pakistan and introduced the Village Aid program. He pointed out that the U.S. provided the most assistance during military dictatorships, which also affected public sentiment toward the U.S. He explained that In places where the U.S. has provided aid through various projects we have benefited. If this aid is cut off the economic impact on Pakistan will be less but the diplomatic consequences for the U.S. will be significant as U.S. aid is often conditional. This will damage the U.S.'s reputation. In response to a question he stated. Military aid is not related to developmental aid. Military aid is provided only when Pakistan aligns with U.S. objectives otherwise Pakistan purchases such items from U.S. agencies.
He acknowledged that while the suspension of U.S. aid would have a psychological impact on ongoing projects in Pakistan, existing agreements will still be honored. However he recalled that in the 1990s the U.S. had previously halted ongoing projects for Pakistan. We are a country with limited resources so there could be positive effects from this but the aid was already minimal he added. Michael Kugelman an analyst based in Washington stated that Pakistan had been receiving U.S. aid for a long time, with USAID deeply involved in these humanitarian efforts. He explained that U.S. aid to Pakistan and other countries had been under intense criticism which likely influenced the new administration's decision. Kugelman noted that. This decision will severely impact the vulnerable populations who rely on such aid and the timing of this decision is problematic as Pakistan is already facing severe financial difficulties.
An official working on U.S. projects in Pakistan speaking on condition of anonymity revealed that each year around 500 Pakistanis travel to the U.S. for various exchange programs and educational scholarships. According to the official this aid technically does not fall under the category of foreign U.S. aid that has been suspended. In response to a question the official stated that it is highly likely that these programs between the U.S. and Pakistan will continue and students currently studying in the U.S. under the Fulbright Scholarship will not be affected by this suspension. Senior journalist Iftikhar Firdous associated with Khurasan Diary stated that the suspension of U.S. aid will also affect the nearly 14,000 Afghan refugees residing in Pakistan many of whom were awaiting to go to the U.S. He mentioned that for now everything is paused for 90 days. He noted that the non governmental sector through which this aid is distributed will be most impacted. Additionally the United Nations' budget will also be affected by the suspension. However in his view the suspension will have minimal impact on Pakistan's counter terrorism efforts. Iftikhar Firdous added that some counter terrorism facilities along the Balochistan border which were funded by U.S. aid will now be affected by this suspension. Maleeha Lodhi on the other hand clarified that U.S. aid to the United Nations cannot be viewed in the context of Pakistan, and even if the U.S. does not provide assistance for global operations the U.N. is made up of 193 countries not just the U.S.
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