The United States Agency for International Development (USAID) is the primary US agency that assists countries in recovering from disasters, escaping poverty, and implementing reforms to democracy. It also supports the economic development of developing nations and increases their ability to engage in trade, which also benefits US commercial objectives. According to the Congressional Research Service (CRS) report, USAID is based in more than 130 countries, and around 10,000 people are employed, two-thirds of whom work overseas .
Their activities include providing food to people from underdeveloped countries who are living under the poverty line. They also provide vaccinations for polio and other medical diseases. In 2023, USAID accomplished more than $40 billion in foreign assistance, accounting for roughly 42% of total aid that year.Ukraine, Ethiopia, Jordan, the Democratic Republic of the Congo, Somalia, Yemen, Afghani-stan, Nigeria, South Sudan, and Syria were among the countries that received the most aid in 2023.
USAID has made significant contributions to Pakistan’s healthcare, education, infrastructure, and eco-nomic growth. From 2010 to 2020, Pakistan received 2.5 billion in USAID assistance, with hundreds of mil-lions as-signed to essential enterprises annually. However, recent changes have resulted in the halting of USAID funding. On January 20, 2025, the Trump administration ceased all foreign aid, except for Egypt and Israel, resulting in the suspension of all USAID-funded programsglobally and in Pakistan.The sudden stop-page of funding could hinder basic amenities, including the supply of vital medicines and food assistance, which could worsen starvation and health crises.
Many poor nations, some of which depend on foreign aid for more than half of their total national income, might encounter increased financial difficulties as they have difficulty recuperating the lost financial sup-port.Eliminating this assistance unexpectedly and dismissing the staff members needed for this assistance is per-ilous for the global community. Moreover, this has hampered international efforts to alleviate hunger and im-peded the resources of treatments, such as the medication that prevents mothers from passing HIV onto their offspring. For example, in Africa’s subcontinent, the closure of USAID has jeopardized crucial HIV therapy and study programs. Medical facilities in Nigeria and Uganda have closed, resulting in millions lacking a source of essential medical treatments. A permanent stop in aid assistance might prevent substantial improvements in HIV prevention and cure.
Around 1.7 million people in Pakistan, including 1.2 million Afghan refugees, are at risk due to the halting of USAID funded programs. This suspension will lead to a humanitarian crisis for these Afghan refugees as it jeop-ardizes their essential needs of shelter, food, and healthcare. Furthermore, over three dozen projects have been postponed which impacts industries such as healthcare, education, and infrastructure development. For example, a burns and plastic surgery centre in Peshawar, built with a $15 million USAID grant, has an indeterminate future. Moreover, programs combating tuberculosis and HIV/AIDS have been suspended which has left thousands of patients without treatment and support. For example, in Sindh province, a tuberculosis program supports 1500 families, however, due to this suspension the lives of the patients are put at risk. The suspension of funding could force a shut down of critical assistance, accelerating the hardships en-countered by those in need. USAID has been a key player in encouraging human rights and improving democratic reforms in the countries.
Pakistan’s immediate response should be to establish a relief fund to prioritize the healthcare and education system and to mobilize corporate social responsibility (CSR) initiatives from business and international corporations. Pakistan should enhance domestic revenue and strengthen local development programs to reduce the dependency on foreign aid. Pakistan can negotiate with other countries e.g. China, Gulf Countries, or organizations such as Islamic Development Bank or World Bank to secure grants or loans. In the long term, Pakistan should expand its exports, economic growth and strengthen its education system and invest in locally manufactured medicines to reduce foreign aid reliance. By implementing these strategies, Pakistan and other affected countries will be competent to cope with the challenges that arise from the suspension of USAID funding while also working towards a more sustainable future.
The writer is a International Law expert with a rich experience in negotiation,
mediation and Alternate Dispute Resolution.
