The United States has reinstated the United States Agency for International Development (USAID) funding to Pakistan.
Sources told ProPakistani that Islamabad has received grants under two USAID funded projects including the US Need-Based Merit Scholarships for Pakistani University Students Programme (Phase-II) and the FATA Infrastructure Program till June 2025.
The move comes after the U.S. government in February 2025 suspended approximately $845 million in development aid under Executive Order 14169.
The freeze targeted government-to-government (G2G) and off-budget projects, which include programs where USAID channels funds directly to non-governmental organizations (NGOs) operating in Pakistan.
Sources further said that ongoing discussions between officials of the U.S. Embassy in Islamabad and Pakistan’s Economic Affairs Division (EAD) have focused on broader reinstatement of USAID initiatives. These engagements aim to address structural concerns regarding transparency and monitoring of funds disbursed directly to NGOs.
The Pakistani side has reportedly advocated for a revised mechanism whereby USAID grants to NGOs are routed through relevant government ministries.
USAID and Pakistan have a longstanding development partnership. In 2010, both sides signed the Pakistan Enhanced Partnership Agreement (PEPA) to formalize development cooperation. More recently, in 2023, a five-year Development Objectives Assistance Agreement (DOAG) worth $445.6 million was signed to support climate-resilient economic growth, inclusive governance, and improved health outcomes.
Additionally, in 2023, an amendment to PEPA was signed, bringing in an extra $407 million to further strengthen Pakistan’s development agenda.
Read Also: Rupee Miserably Below Par Against Major Currencies
