SUBCONTINENT

After Bangladesh, US suspends aid to Pakistan: Report

Wednesday, 29 Jan, 2025
Pakistan is yet to confirm the development. (Photo courtesy: Wikimedia Commons)

Islamabad: The United States has temporarily suspended foreign assistance to Pakistan for re-evaluation, following an executive order issued by President Donald Trump, according to a media report. The move comes days after the US government, via its donor agency USAID, announced an immediate cessation of all work in Bangladesh, including contracts, grants, cooperative agreements, and other procurement instruments.

In Pakistan too, the move has put a stop to several important USAID (United States Agency For International Development) projects, including the Ambassadors Fund for Cultural Preservation (AFCP) - a flagship program to promote cultural heritage preservation and protection, the Geo News reported.

According to the US embassy in Islamabad, the AFCP fund "helps protect historic buildings, archaeological sites, museum collections, and traditional cultural expressions like Indigenous languages and crafts around the world". Quoting an unnamed official at the US Consulate in Karachi, the report said the US has paused Pakistan's foreign assistance for re-evaluation as per the executive order issued by Trump.

Five projects related to the energy sector have also come to a halt as a result of this decision, and they are: Power Sector Improvement Activity, Pakistan Private Sector Energy Activity, Energy Sector Advisory Services Project, Clean Energy Loan Portfolio Guarantee Program, and Pakistan Climate Financing Activity.

The US move also hit many projects related to health, agriculture, livelihood and food security, flood, climate, and education. Democracy, Human Rights, and Governance funds are also hit by Trump's order. There have been fears that some of these programs will be shelved forever, or at least reduced significantly, according to Geo News.

Pakistan is yet to confirm the development and the impact of Trump's executive measures. The total value of the affected projects is not known, as it is not clear how much annual aid the US is currently pumping into Pakistan.

This decision comes as a shock to many in the South Asian nations, especially given the current economic crisis prevailing there. The two nations, already grappling with a dire financial situation, now face even more significant challenges following the suspension of US aid.