The Discontinuation of USAID and Its Implications for Pakistan

Abstract

The abrupt suspension and effective discontinuation of United States Agency for International Development programming has created immediate humanitarian and operational shocks across Pakistan and raises deeper questions about development continuity, strategic dependence and foreign policy risks. This article examines the causes and channels of the USAID pause, maps its short-term effects on health, education and livelihood programs, and analyzes the likely medium term implications for Pakistan s governance, economy and diplomatic posture. Using a qualitative case study approach that draws on official statements, agency oversight reports, contemporaneous news reporting and scholarship, the study traces how the withdrawal affects public service delivery, civil society partners, donor coordination and Pakistan s capacity to respond to emergencies. Results show that disrupted funding pipelines and oversight gaps produce program closures, employment losses among NGO and contractor staff, and increased fiscal pressure on provincial and federal budgets. They also create strategic openings for alternative donors while constraining Pakistan s policy options. The article concludes with policy recommendations for Pakistan and international partners to manage service continuity, diversify financing, strengthen local capacities and insulate critical development functions from politicized shifts in donor funding.

Keywords: USAID, Pakistan, Foreign Aid, Aid Suspension, Humanitarian Assistance, Donor Dependence