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Wednesday, March 19, 2025  
18 Ramadan 1446  

Trump’s USAID shutdown pushes 1.7 million people in Pakistan into Crisis

Hundreds of Pakistani employed by USAID projects lose jobs; Tuberculosis and HIV programs affected
People protest near the office of USAID in Washington early February 2025. PHOTO FILE
People protest near the office of USAID in Washington early February 2025. PHOTO FILE

**The abrupt suspension of U.S. foreign aid has left hundreds of Pakistanis without employment and millions without access to critical healthcare and humanitarian services. The decision, made by former U.S. President Donald Trump, has halted the operations of USAID-funded programs across Pakistan, affecting a wide range of sectors, including healthcare, education, refugee assistance, and economic development.

Healthcare and Employment Crisis

One of the most immediate and devastating impacts has been on Pakistan’s healthcare sector. In Sindh’s Shikarpur district alone over 100 workers lost jobs when the U.S.-funded tuberculosis control program was abruptly halted. Launched in November 2023, the program aimed to combat tuberculosis in 15 underdeveloped districts of Sindh by 2029.

With Pakistan ranking sixth among nations with the highest tuberculosis burden and over 600,000 new cases annually, the shutdown has left thousands of patients vulnerable.

Additionally, a U.S.-funded HIV/AIDS control program in Sindh has been affected, cutting off life-saving medications for thousands of patients. Pakistan, with over 210,000 individuals living with HIV, now faces a severe public health crisis.

USAID Contributions and Their Impact

USAID has played a significant role in Pakistan’s development, funding programs in healthcare, humanitarian assistance, education, infrastructure, and economic growth. Pakistan received approximately $2.5 billion in USAID funding between 2010 and 2020, with hundreds of millions allocated annually for critical initiatives. The cessation of these funds threatens the survival of many social programs that directly impact the country’s most vulnerable populations.

1.7 Million People Directly Affected

According to the United Nations, around 1.7 million people in Pakistan, including 1.2 million Afghan refugees, will be directly affected by the suspension of USAID programs. The closure of over 60 U.S.-funded health facilities has left healthcare authorities scrambling for alternatives, with Sindh’s provincial government acknowledging the devastating consequences of the aid freeze.

Beyond healthcare, the suspension affects multiple sectors, including energy, trade, economic growth, climate change, and nutrition. Mohammad Dittal Kalhoro, head of the Sindh Rural Support Organization, warned that “suspension of such crucial programs puts the lives of millions at risk.”

A Shift in Pakistan’s Aid Dependence?

While the suspension has sparked a humanitarian crisis, some analysts suggest it may serve as a wake-up call for Pakistan to reduce its dependence on foreign aid. Veteran economist Shahid Hasan Siddiqui views the crisis as an opportunity for Pakistan to reallocate its resources and prioritize self-sufficiency. “While it will cause immediate hardships, this crisis may incentivize us to discipline our economy, reshape priorities, and push the state to take back responsibilities long outsourced to NGOs,” he said.

Siddiqui also highlighted that while Pakistan has received billions in U.S. aid, the country has suffered over $130 billion in economic losses due to its involvement in the war on terror. He urged the government to increase GDP allocation for essential services, improve tax collection, and invest more in human development to mitigate the impact of the aid suspension.

Pakistan’s Response and Future Outlook

Pakistan’s Foreign Ministry has expressed hope that USAID programs will be resumed. “Over the years, USAID has worked on a number of beneficial projects in Pakistan in the areas of energy, education, health, and narcotics control. We hope that these programs will restart soon,” said ministry spokesperson Shafqat Ali Khan.

As the aid freeze continues, Pakistan faces an uncertain future in addressing healthcare and humanitarian challenges. For now, the suspension remains a stark reminder of the country’s reliance on foreign assistance and the urgent need to develop sustainable, locally-driven solutions.

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