Two USAID programmes partially restored in Pakistan

ISLAMABAD: The United States has resumed USAID funding to Pakistan after a pause earlier this year.

Islamabad has already received grants under two key programmes: the US Need-Based Merit Scholarships (Phase-II) and the merged area governance programme, with funding continuing until 2025, according to sources.

This comes after the suspension of $845 million in February 2025 under an Executive Order by President Donald Trump. The freeze had affected G2G and off-budget NGO programmes.

According to sources, ongoing discussions between the US Embassy in Islamabad and Pakistan’s Economic Affairs Division are focused on a broader resumption of USAID initiatives. These engagements are aimed at addressing structural concerns regarding transparency and oversight of funds distributed directly to NGOs. The resumption signals a resumption of US development engagement and will likely usher in a broader partnership, and it is likely that all USAID programmes in Pakistan will resume soon.

In response to questions about the restoration of USAID, US Secretary of State Marco Rubio confirmed that the United States was reorganising foreign assistance programmes, continuing essential life-saving programmes, and making strategic investments that strengthen partners and the US.