Pakistan’s Social Sector Shows Resilience After Trump’s Sudden Aid Cuts
(MENAFN) The Trump administration’s unexpected halt to foreign aid, including critical funding via the US Agency for International Development (USAID), sent shockwaves through Pakistan’s social sector. This abrupt move forced numerous organizations to pause projects, downsize staff, and reduce their operational scope.
Shortly after commencing his second term in January, President Trump implemented a freeze on all foreign assistance as part of his “America First” agenda. This decision intensified the already strained funding situation in Pakistan, where donor fatigue and shifting international priorities had already weakened global aid flows in recent years.
Despite these setbacks, Pakistan’s development sector has so far absorbed the initial impact. Analysts credit a strategic pivot—backed by increasing contributions from the Pakistani diaspora and domestic government support—with helping NGOs sustain their activities.
“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,” said Naseer Memon, an Islamabad-based social sector expert.
While USAID was not the sole benefactor of Pakistan’s social programs, its sudden withdrawal disrupted a range of vital initiatives in health, education, and community welfare, Memon told media.
Local NGOs responded swiftly by broadening their funding base, turning to domestic and diaspora resources to stave off a complete collapse.
European donors have also played a key role, particularly in funding projects that promote religious harmony and democratic governance, especially during the post-9/11 “war on terror” era. This support helped diversify Pakistan’s donor network, Memon noted.
Reorganization and Durability Amid Crisis
A further lifeline for local NGOs has been the Pakistani government’s financial backing of multiple social sector projects, Memon explained.
One of the largest USAID recipients, the Sindh Rural Support Organization (SRSO), was compelled to terminate three health programs in southern Sindh following the funding freeze—two projects were actively underway, while one was just launching.
Mohammad Dittal Kalhoro, head of SRSO, revealed that layoffs were unavoidable, but nearly 90% of affected staff found new roles within months through strategic restructuring and cost reductions.
“We either retained or re-hired employees (affected by USAID cuts) for other projects where we had some cushion, or new projects that we launched later,” Kalhoro told media.
Notably, one of the suspended projects was reinstated by USAID in June, allowing SRSO to expand again and rehire additional staff, he added.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
