USAID assistance to Pakistan faces uncertainty amid US political shifts

ISLAMABAD: Amid growing criticism of the US Agency for International Development (USAID) by US President Donald Trump and his ally Elon Musk, Pakistan is set to lose millions of dollars in annual grant-based projects.

Between 2011 and 2024, USAID had provided over $1.2 billion in grants for various development projects across Pakistan. These funds were channelled through the Economic Affairs Division (EAD) and other official civilian channels.

However, USAID assistance has declined significantly in recent years, dropping to $31 million in the fiscal year 2022-23 and $41 million in 2023-24. These figures only reflect on-budget inflows, while off-budget assistance—disbursed through INGOs or contractors—remains uncertain.

The ongoing political backlash against USAID by the new ruling elite in Washington is expected to further weaken US influence over policymaking in developing countries, particularly in Pakistan, where USAID has been a key development partner.

Official data obtained by The News on Monday reveals the following trends in USAID disbursements: 2011-12: $126 million (under the Kerry-Lugar Bill (KLB) assistance package) 2012-13: $102 million (PPP-led government’s last fiscal year) 2013-14: $128 million (PMLN government’s first year) 2014-15: $97 million, 2015-16: $160 million (the highest amount received) 2016-17: $41 million, 2017-18: $117 million (PMLN’s final year) 2018-19: $96 million (PTI government’s first year) 2019-20: $75 million, 2020-21: $108 million, 2021-22: $70 million (the final year of PTI government) 2022-23: $31 million (PDM-led government’s first year) 2023-24: $41 million and in the first five months (July–Nov) of the 2024-25 fiscal year, the US has disbursed $38.25 million to Pakistan.

The potential shutdown of USAID-funded projects could jeopardise numerous development initiatives and put the jobs of many employees at risk.