Pakistan's Growth-Related Projects Hit As Donald Trump Orders Freeze On Foreign Assistance - What It Means?

(MENAFN- Live Mint) The United States has temporarily halted foreign assistance to Pakistan for re-evaluation following an executive order issued by President Donald Trump, according to a media report. This move has led to an immediate suspension of a number of critical projects funded by the United States Agency for International Development (USAID) in Pakistan.

Halted programs

The suspension impacts several key USAID initiatives, including the Ambassadors Fund for Cultural Preservation (AFCP), according to Geo News. The AFCP fund supports efforts to protect historic buildings, archaeological sites, museum collections, and traditional cultural expressions, such as indigenous languages and crafts.

Additionally, five major energy-related projects have been put on hold. These include:

Power Sector Improvement Activity

Pakistan Private Sector Energy Activity

Energy Sector Advisory Services Project

Clean Energy Loan Portfolio Guarantee Program

Pakistan Climate Financing Activity

Other projects in sectors such as health, agriculture, food security, education, and climate change have also been affected. Economic growth-related projects, including the Social Protection Activity, which was slated to end in 2025, are also on hold. Concerns have been raised that some of these projects might be canceled permanently or significantly reduced.

Impact and concerns

The total value of the affected projects remains unclear, as it is not known how much aid the US is currently providing to Pakistan. Officials in Pakistan have yet to comment on the suspension and its potential long-term impacts.

Reportedly, the US Embassy in Islamabad confirmed the move, attributing it to President Trump 's executive order for the reevaluation of foreign assistance .

MENAFN29012025007365015876ID1109144409