US temporarily halts aid to states, including allies

WASHINGTON/ NEW YORK: The US has temporarily suspended its foreign assistance to other countries pending a review aligned with President Donald Trump’s executive order. The countries considered allies of the US have also come under the ban, including Pakistan, Taiwan, Turkey, as well as African, Asian and Latin American states. However, military funding for Israel and Egypt will continue.

The move has halted several key development projects in Pakistan, with US officials confirming that Pakistan is not the only country affected by this temporary aid suspension. The suspended programmes include those related to cultural preservation, energy, economic, agriculture, education, health, democracy, human rights and governance. However, the US Secretary of State will review their final status within 90 days.

This move has instantly stopped many important USAID projects in Pakistan, including the Ambassadors Fund for Cultural Preservation (AFCP), the flagship programme to promote cultural heritage preservation and protection. Additionally, five projects related to the energy sector have also been halted. 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.

Economic growth-related four projects were also affected. 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.

In the agriculture sector, two of the five programmes were expected to end in 2025. They include Water Management for Enhanced Productivity and Pakistan Agriculture Programmes II. Trump’s orders also impacted democracy, human rights and governance funds. Four of these 11 projects were expected to be completed in 2025. In the education sector, one of the four projects, Improving Girls Education Activity, was expected to be completed in 2025. A similar programme, Higher Education System Strengthening Activity and Education Resilience Activity, that focused on Sindh and KP are also halted.

In the health sector, Integrated Health Systems Strengthening and Service Delivery, Tuberculosis Local Organisation Network, Tuberculosis Implementation Framework Agreement, Building Healthy Families and Global Health Security Programme were also paused.

In a recent statement, the White House stated: “The responsible department and agency heads, in consultation with the Director of OMB, will make determinations within 90 days of this order on whether to continue, modify, or cease each foreign assistance programme based upon the review recommendations, with the concurrence of the Secretary of State.”

As soon as President Trump assumed the presidency, he has raised so many issues on the domestic as well as foreign policy fronts through his executive orders that it seems difficult to deal with them until the US Congress elections in two years.

The effects of the temporary ban on US global aid are likely to damage America’s global image and leadership image, while European allies are already deeply resentful of Trump’s past Nato policy. Now, Trump has created such a stir in North America by announcing a 25 per cent surcharge on imports from his neighbours and allies Canada and Mexico, which are preparing countermeasures.

The statement about integrating Canada into the US has also caused stir in Canada regarding national identity, while the campaign to deport immigration and illegal immigration is also worrying Latin American countries. Lack of cheap labour in the US is causing labour shortages, cost increases, and inflation for small businesses and the industrial sector.