THIS is with reference to the report ‘USAID chief sacked after criticising Trump’ (Feb 13). The decision of American President Donald Trump to suspend foreign aid has resulted in the United States Agency for International Development (USAID) stopping many projects in Pakistan, causing great socioeconomic repercussions.

This suspension has ended 39 major USAID projects in Pakistan with a total cost of over $845 million. These projects were concentrated in various sectors, including energy, economic development, agriculture, democracy, human rights and governance, education, health and humanitarian assistance.

The abrupt decision has left local non-governmental organisations (NGOs) and partner institutions struggling to survive, leaving local operations suspended and essential services and development initiatives discontinued. The immediate funding freeze has meant an end to critical development projects. More than 60 health facilities are at the risk of closure.

USAID used to support through part-nerships with organisations like the United Nations Population Fund (UNFPA), providing such services as maternal health care, family planning and disease prev-ention. A lot of literacy and education infrastructure development activities have also been halted. Initiatives to improve teacher training, provide learning materials, and construct or renovate neglected schools have come to a halt.

The suspension of USAID funds has already hurt the economy, especially with respect to employment opportunities. Many local organisations and contractors working on USAID programmes have either downsized already or are in the process of pulling the shutters down, resulting in employment losses.

Infrastructure construction workers have been laid off after USAID contracts ceased to be valid anymore. Several agricultural ventures that employed and gave resources to farmers have also been abandoned, threatening food security.

The slowdown in the development activity is bound to affect the confidence of foreign investors, and put additional burden on the government to fill in the gap created by the exit of assistance. Supply chains and service delivery in critical sectors also stand messed up. Additionally, the suspension of humani-tarian assistance programmes has left the poor with fewer sources, increasing the risk of poverty and social unrest.

However, much more critical than the current upheaval is the risk to long-term socioeconomic development of the country.

Sadly, democracy, human rights and governance programmes have been stopped, and that does not augur well for the democratic future of the country.

Nazakat Hussain
Islamabad

Published in Dawn, February 15th, 2025