USAID Resumes Key Development Funding for Pakistan
ISLAMABAD – The United States has reinstated development assistance to Pakistan through the United States Agency for International Development (USAID), bringing renewed momentum to bilateral cooperation in education and infrastructure.
📌 Key USAID Programs Resume
According to official sources, Pakistan has received grants under two major initiatives:
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US Need-Based Merit Scholarships for Pakistani University Students (Phase-II)
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FATA Infrastructure Program
These programs will continue until June 2025, offering crucial support to underserved regions and students across Pakistan.
🇺🇸 Aid Resumed After February Freeze
The funding comes after the U.S. suspended approximately $845 million in development aid earlier this year under Executive Order 14169. That freeze affected both government-to-government (G2G) and off-budget NGO projects, prompting concern among stakeholders in Pakistan.
🤝 Talks Underway for Broader Aid Revival
Ongoing discussions between officials from the U.S. Embassy in Islamabad and Pakistan’s Economic Affairs Division (EAD) are focused on expanding the resumption of USAID programs. The talks aim to:
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Improve transparency and oversight of funds,
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Address concerns regarding direct NGO disbursements, and
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Align USAID efforts with Pakistan’s national development goals.
Pakistani officials have proposed channeling USAID-funded NGO programs through relevant government ministries to enhance monitoring and ensure strategic alignment.
📝 A Longstanding Partnership
USAID and Pakistan share a deep development relationship:
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In 2010, the Pakistan Enhanced Partnership Agreement (PEPA) was signed.
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In 2023, a five-year Development Objectives Assistance Agreement (DOAG) worth $445.6 million was introduced to support:
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Climate-resilient economic growth
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Inclusive governance
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Improved health outcomes
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An additional $407 million was added through an amendment to PEPA later the same year.
💬 What’s Next?
While funding for key projects has resumed, broader reinstatement of USAID support remains under review. Both countries continue to engage in high-level dialogue to ensure the aid process is transparent, accountable, and impactful.
Conclusion: The restoration of USAID funding marks a positive step in U.S.-Pakistan relations, with renewed focus on youth education, infrastructure development, and long-term sustainability. As oversight mechanisms improve, more aid programs may follow suit—benefiting communities across the country.
