The United States has restarted USAID funding to Pakistan after putting it on hold earlier this year. Pakistan has already begun receiving financial support through two major programs — the US Need-Based Merit Scholarships (Phase-II), which help students from low-income families, and the FATA Infrastructure Program, which focuses on building roads and other important facilities in the tribal areas. Funding for both of these programs will continue until June 2025.
The funding had been suspended in February 2025 under Executive Order 14169, which led to the freezing of $845 million. This freeze impacted both government-to-government (G2G) assistance and programs run by non-governmental organizations (NGOs) that were funded separately. However, the situation is now improving, and meetings are taking place between officials from the U.S. Embassy in Islamabad and Pakistan’s Economic Affairs Division. Their goal is to improve coordination and oversight of how the aid is used.
To make the aid process more transparent and efficient, Pakistani officials have suggested that all NGO-related funds be managed through the relevant government ministries. This would help monitor spending and ensure that the aid reaches those who truly need it. The U.S. and Pakistan have a long-standing relationship when it comes to development assistance. In fact, in 2023, they signed a Development Objective Assistance Agreement (DOAG) worth $445.6 million, showing their continued commitment to working together for the country’s progress.
