• Source:JND
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In a major blow to the debt-ridden Pakistan, the United States has paused aid through an executive order passed by President Donald Trump, Pakistani media Geo News reported citing an official at the US consulate in Karachi. Without mentioning any country, Tammy Bruce, spokesman for the US Department of State, has also issued a statement in this regard. Without mentioning any country, Tammy Bruce, spokesman for the US Department of State, has also issued a statement in this regard.

The major blow came as Pakistan facing an unprecedented economic crisis for the past 3-4 years. The citizens are struggling for basic needs as inflation shot above 37 per cent. "Consistent with President Trump's Executive Order on Reevaluating and Realigning United States Foreign Aid, Secretary Rubio has paused all US foreign assistance funded by or through the State Department and US Agency for International Development (USAID) for review," Bruce said.

"As Secretary of State Marco Rubio has said, 'Every dollar we spend, every programme we fund, and every policy we pursue must be justified with the answer to three simple questions: Does it make America safer? Does it make America stronger? Does it make America more prosperous?'" he added.

Impact of Trump's aid pause in Pakistan

 As per the executive order, all aid to Islamabad will be stopped immediately. A number of important USAID projects in Pakistan, including the Ambassadors Fund for Cultural Preservation (AFCP) which is the flagship programme to promote cultural heritage preservation and protection will also be stopped.

According to the US embassy, this fund "helps protect historic buildings, archaeological sites, museum collections, and traditional cultural expressions like indigenous languages and crafts around the world."

In other words, the AFCP demonstrates 'the depth of US respect for the cultural heritage of Pakistan.' Additionally, five projects related to the energy sector have also come to a halt as a result of this decision. They include 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.

Impact on Pakistan's economy

Economic growth-related four projects are also hit. Among them, Social Protection Activity was the only programme supposed to end in 2025.  Others include Investment Promotion Activity, Pakistan Private Investment Initiative and Economic Recovery and Development Activity. Luckily, the $24.8 million FATA Economic Revitalisation Programme, implemented by the United Nations Development Programme has already been completed, according to Geo News.
In the agriculture sector, the Gomal Zam Command Area Development Project was completed in 2024. However, two of the five programmes were expected to end in 2025.

Similar action was taken against Bangladesh

The latest action came nearly two days after the Trump administration announced an immediate termination or suspension of any work in Bangladesh under contracts, work orders, grants, cooperative agreements, or other assistance or procurement instruments. The announcement was made by the United States donor agency USAID in a message on Saturday (25 January), stating the "immediate suspension". The suspension has also been felt in other areas dependent on US funding as well. 

Immediately cease or suspend any work: Trump's order 

The USAID, in its letter on the funding suspension, cited US President Trump's recent executive order, saying, "This letter is directing all USAID/Bangladesh implementing partners to immediately cease or suspend any work under your USAID/Bangladesh contract, work order, grant, cooperative agreement, or other assistance or acquisition instrument."

The United States is the largest provider of humanitarian aid in response to the Rohingya crisis, contributing nearly $2.4 billion since violence erupted in August 2017. Of this, nearly $2 billion has been directed towards assisting Rohingya refugees and host communities in Bangladesh, according to the USAID website.

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