Karachi:
The abrupt decision of the Trump administration to terminate foreign aid, including financing through the United States Agency for International Development (USAID), delivered a shake to the social sector of Pakistan, forcing many organizations to stop projects, fire the staff and climb operations.
Days after starting his second term in January, Trump announced a pause in all foreign assistance under his “America First” policy. The measure deepened even more in an already challenging financing environment in Pakistan, where donor fatigue and changing priorities have marked global aid currents in recent years.
Even so, the Pakistan development sector has managed to absorb initial clashes. Experts say that a change in the strategy, reinforced by the growing support of the Pakistani diaspora and the contributions of the national government, has helped NGOs keep their work alive.
“The Pakistan decades development sector, particularly the big NGOs, have deep roots and are looking for a multisectoral and multidonor approach to avoid dependence on one or a few donors,” said Naseer Memon, an expert in social sector based in Islamabad.
Although USAID was not the only donor of Pakistan’s development initiatives, his sudden retirement interrupted several key health, education and community welfare projects, Memon told Anadolu.
However, local NGOs quickly adapted to diversifying their sources of financing and depending more on national support and based on diaspora to avoid a complete collapse.
European nations have also financed programs focused on religious harmony and democratic governance in Pakistan, particularly during the “war on terror” after September 11, helping to expand the country’s donor panorama, Memon added.
Restructuring and resilience
Another factor that has helped local NGOs, according to Memon, is the financing of the Pakistani government for a series of social sector projects.
A large USAID fund receiver, the Rural Support Organization of Sindh (SRSO), was forced to close three health projects in the Southern Province after the freezing of funds, two of which were in full swing and one just starting.
Mohammad Dittal Kalhoro, head of Srso, said his organization had to put aside several staff members, but almost 90% became working in a matter of months through the restructuring of projects and cost reduction.
“We kept employees or hired (affected by USAID cuts) for other projects where we had some cushions or new projects that we launched later,” Kalhoro told Anadolu.
USAID restored one of the previously detained projects in June, allowing greater receptive and expansion, he added.
Diaspora intensifying
Increasingly, Pakistani NGOs depend on the diaspora funds. More than 8 million Pakistani live abroad, mainly in the United States, Europe and Gulf States, and send home more than $ 30 billion in remittances every year.
This financial life is now helping beneficial organizations and NGOs to complete water -related health, education and projects, particularly in unattended rural areas, Memon said.
Ali Mohsin, a Pakistani-Canadian engineer, has been raising funds for an eye hospital in Dir, a district of the northwest province of Khyber Pakhtunkhwa near the Afghan border. Between 2012 and 2024, the Canadian Pakistani helped complete 12 main projects in health, education and clean water, while another 10 are underway only this year, said Mohsin, who works with the Al-Khidmat Foundation, the charity wing of the Jamaat-E-Islami socio-religious party.
Umair Idris, director of the Foundation, also emphasized the importance of diaspora financing, saying that 35% of the beneficial organization now comes from Pakistani abroad, a 10% increase from 2020 levels.
The Citizens Foundation, which directs a network of more than 2,000 schools throughout the country, has also seen high diaspora support.
“Previously, we would receive 30% of our Pakistani general funds abroad,” Mushtaq Kassim Chhapra, founding director of the organization, told Anadolu.
“This participation has increased around 40% to 42% in recent years, particularly because (Pakistani abroad) they have confidence and confidence in our work.”
Global Aid Declive
The tension in the social sector of Pakistan is part of a larger global trend. Trump’s freezing about American aid, the world’s largest donor group, caused similar budget cuts from other countries, leaving the international development community fighting.
The global gin headquarters recently announced that it would reduce $ 1.4 billion of previously approved subsidies, citing uncertainty about donor commitments.
