‘No significant impact’ of Trump temporarily halting development aid to Pakistan — official

An aerial view of the commercial district of Pakistan's port city of Karachi on January 27, 2023. (AFP/File)
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Updated 29 January 2025
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‘No significant impact’ of Trump temporarily halting development aid to Pakistan — official

  • Suspension hits five energy, four economic growth, five agriculture projects in Pakistan, several others in education and health
  • Trump’s executive order has set alarm bells ringing among aid groups, governments around the world that depend on US largesse

KARACHI: Khurram Schehzad, an adviser to the Pakistani prime minister on economic affairs, said on Tuesday US President Donald Trump ordering a 90-day pause in foreign development assistance pending assessments of consistency with his foreign policy would have “no significant impact” on Pakistan. 

Trump’s executive order has set alarm bells ringing among aid groups and governments around the world that depend on US largesse.

According to a US State Department cable seen by Reuters, the decision has affected 11 governance programs in Pakistan as well as initiatives under the Ambassadors Fund for Cultural Preservation. The suspension hits five energy projects, four in economic growth, five in agriculture, and several others in education and health. Democracy, human rights, and governance funds have also been put on hold, pending a review.

Over the past twenty years, the US had provided more than $32 billion in direct support to the people of Pakistan, according to the website of its embassy in Islamabad. 

“Firstly, the aid has been temporarily halted and secondly, the aid has been halted for all countries, not just Pakistan, and thirdly, it is a very small portion of the overall grants,” Schehzad told Arab News when questioned about the impact of pausing development assistance from the US Agency for International Development for 90 days.

“Total grants for fiscal year 2025 were hardly 1 percent of the total external financing. Grants received so far in the first five months of fiscal year 2025 stand at $38 million, which has already surpassed the budgeted target of $21 million for FY25. So no significant impact as such.”

Humanitarian organizations and UN agencies say they could face drastic curbs on their ability to distribute food, shelter and health care if the freeze becomes permanent. The US is by far the biggest contributor to global humanitarian aid, supplying an estimated $13.9 billion in 2024, accounting for 42 percent of all aid tracked by the United Nations.

The cuts will also affect the supply of lifesaving drugs for HIV, malaria and tuberculosis around the globe, which millions of people depend on. 

The order to freeze funding has thrown USAID missions and their partners into chaos, with many organizations unsure whether to lay off staff, start selling assets such as cars or tell employees to take unpaid leave. USAID has reportedly been forbidden from communicating with implementing partners except to say funds have been paused.


UNGA adopts Pakistan-sponsored resolution focusing world attention on Palestine, Kashmir

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UNGA adopts Pakistan-sponsored resolution focusing world attention on Palestine, Kashmir

  • The resolution calls on countries to immediately cease foreign military intervention in and occupation of foreign countries and territories
  • Islamabad says the resolution reinforces international attention to the legitimate causes and aspirations of Palestinian, Kashmiri peoples

ISLAMABAD: The United Nations General Assembly (UNGA) has adopted a Pakistan-sponsored resolution on the peoples’ right to self-determination, Pakistan’s UN mission said on Friday, saying it reinforces the world attention to the Palestine and Kashmir issues.

The text, which was adopted by consensus, was recommended last month by the 193-member General Assembly’s Third Committee, which deals with social, humanitarian and cultural issues, according to Pakistani state media.

Co-sponsored by 65 countries, it called on countries to immediately cease foreign military intervention in and occupation of foreign countries and territories as well as acts of “repression, discrimination, and maltreatment.”

The resolution also declared the General Assembly’s firm opposition to acts of foreign military intervention, aggression and occupation, which have resulted in suppression of peoples’ right to self-determination in parts of the world.

“The consensual adoption of the resolution manifests broad international support for the inalienable right of the peoples facing colonialism, alien domination and foreign occupation,” Pakistan’s UN mission said on X. 

“For the people of Indian Illegally Occupied Jammu and Kashmir (IIOJK) and Palestine, the resolution reinforces international attention to their just and legitimate cause and their aspirations for freedom and dignity in accordance with UN Security Council resolutions.”

Pakistan, which does not recognize Israel, supports an independent Palestinian state based on “internationally agreed parameters” and pre-1967 borders, calling for an end to Israeli occupation of the Gaza Strip and the West Bank, including East Jerusalem.

Kashmir, on the other hand, has been divided between Pakistan and India since their independence from British rule in 1947. Both countries claim the Himalayan territory in its entirety but rule it in part and have fought multiple wars over it.

Islamabad has repeatedly urged New Delhi to hold a plebiscite in the disputed territory in line with the United Nations Security Council resolutions.

Ambassador Usman Jadoon, Pakistan’s deputy permanent representative to the UN, this week said the realization of self-determination is not merely a historical aspiration, but an enduring obligation.

“Recent developments in the Middle East demonstrate that lasting peace cannot be achieved through the continued denial and suppression of the legitimate right to self-determination of the Palestinian people,” he said on Thursday.

“Similarly, the UN Security Council has, through several resolutions, recognized the legitimate right of self-determination of the people of Jammu and Kashmir. A just resolution of the Jammu and Kashmir dispute remains central to the establishment of durable peace in South Asia.”