Pakistan social development sector has to adjust after Trump stopped aid

(MENAFN) Pakistan’s social development sector has been forced to adapt rapidly following the Trump administration’s decision to halt all foreign aid, including funding from the US Agency for International Development (USAID). The move, part of Trump’s “America First” policy announced just days into his second term, intensified a funding crisis already strained by global donor fatigue and shifting international priorities.

The sudden aid freeze disrupted numerous ongoing projects, forcing many NGOs to lay off staff, suspend programs, and downsize operations. Key sectors such as health, education, and community welfare were among the hardest hit.

Despite the blow, experts say Pakistan’s development sector has demonstrated resilience. Naseer Memon, a social sector analyst based in Islamabad, said that large and long-established NGOs have weathered the storm by embracing a broader, multi-donor strategy. “Pakistan’s decades-old development sector, particularly the big NGOs, are deep-rooted and are pursuing a multi-sectoral and multi-donor approach to avoid dependence on one or a few donors,” Memon told Anadolu.

While USAID was a major player, it was not the only source of external support. The vacuum left by its withdrawal has been partly filled by increased reliance on local contributions and support from the Pakistani diaspora. This shift, according to Memon, has helped NGOs avoid collapse and continue essential services, even if at reduced capacity.

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