USAID, the United States Agency for International Development, has been a crucial partner in supporting Pakistan over the past five years. From 2018 to 2023, USAID funded multiple programs in Pakistan, totaling around $1.5 billion. This funding has been allocated across key sectors necessary for Pakistan's development, including humanitarian aid, economic growth, education, health, governance, and disaster relief. Addressing these areas is paramount, as Pakistan faces significant challenges such as poverty, health emergencies, climate change, and educational gaps. USAID’s assistance aims to improve living conditions and promote stability in the country.

The recent suspension of USAID-funded projects has tangibly impacted Pakistan. Thirty-nine essential programs and $845 million in funding have been axed, forcing the country back into a state of uncertainty. The disruption of foreign assistance across Pakistan's critical sectors, including energy, health, education, governance, and humanitarian areas, now raises concerns about internal stability and its future relationship with the U.S. Only the humanitarian sector received significant support to provide aid to people affected by natural disasters such as floods and earthquakes. Economic development initiatives focused on creating jobs and promoting entrepreneurship, especially among women and young people. Funding for education has been crucial in improving literacy rates and ensuring equitable access to quality education for all children. Health programs focused on enhancing maternal and child health services, fighting diseases, and strengthening health systems. Governance initiatives also received attention and strived to promote transparency, accountability, and democratic practices. These areas demonstrate how USAID's funding aligns with Pakistan's urgent development needs, making a tangible impact.

Additionally, USAID's financial assistance plays a vital role in backing Pakistan's development. Funds not only provide immediate relief but also promote sustainable long-term progress, strengthening the capabilities of local institutions and communities. Through targeted financing, USAID helps build resilience against future crises and establishes a foundation for ongoing growth. The scope and impact of this funding highlight its importance in addressing Pakistan's complex challenges today, from economic sustainability to social development. Over the past five years, USAID has significantly contributed to enriching key sectors in Pakistan, especially in education and health. These sectors are critical for building human capital, which is essential for the country's growth and long-term stability. In education, USAID has invested heavily to expand access to quality learning. Reports show that this funding has helped establish new schools, train teachers, and supply learning materials to millions of children. For instance, initiatives aimed at increasing enrollment have led to the opening of more than 500 primary schools in underserved areas, resulting in a rise in the national literacy rate from 58% to 65% during this period. These advancements allow more children to access education, which is fundamental for their personal and professional development and directly bolsters the creation of a more capable workforce.

In the health sector, USAID's support has led to substantial improvements in health facilities and services. Funding for maternal and child health has increased access to healthcare for women and children. Data shows that maternal mortality rates have dropped nearly 20% thanks to improved access to prenatal and postnatal care sustained by USAID programs. Additionally, the health campaigns funded by USAID have vaccinated over 5 million children against preventable diseases, enhancing overall health outcomes and reducing the burden on the healthcare system. These developments are vital because a healthier population is more productive and better equipped to contribute to the economy.

Furthermore, the synergy between progress in education and health shows how USAID investments are linked to Pakistan's broader economy. A well-educated population fosters innovation and entrepreneurship, which are key drivers of economic growth. At the same time, improvements in health result in lower healthcare costs and a more capable workforce. Therefore, USAID's funding in these areas not only addresses immediate needs but also builds the foundation for sustainable development. Progress in education and health provides robust assistance for a stable and resilient Pakistan, ultimately strengthening the country's ability to handle internal and external challenges.

The ongoing suspension and reduction of U.S. aid to Pakistan over the past five years have created significant challenges for the country’s development efforts. When USAID suspends financial support, many indispensable programs that depend on this funding find it difficult to operate effectively. For example, governance initiatives aimed at enhancing political stability and transparency may face setbacks. With less assistance, efforts to strengthen democratic processes and public sector accountability can slow, resulting in weaker institutions that fail to serve the citizens of Pakistan. Moreover, during crises, such as natural disasters or health emergencies, reduced funding hampers Pakistan’s ability to respond swiftly and effectively. The capacity to mobilize resources, aid those affected, and recover from shocks is severely limited when aid is cut or withdrawn.

The fluctuations in USAID's funding also pose significant obstacles to Pakistan's socio-economic health. Consistent international support creates conditions that encourage investment, business growth, and job creation. Without stable funding from USAID, critical sectors such as education, health, and infrastructure projects may face delays or disruptions. These setbacks can result in missed opportunities for economic development, further worsening the already fragile situation in many parts of the country. As investments in social infrastructure decline, the quality of life for ordinary Pakistanis could worsen, increasing poverty and inequality.

Furthermore, suspending funding can hinder growth in emerging sectors, such as the startup ecosystem, which has the potential to strengthen Pakistan's economy. Many startups rely on foreign aid and investments to launch and expand their operations. These companies often struggle to secure local funding due to high risks and limited access to capital. Therefore, when USAID’s resources are reduced, it sends a discouraging message to investors. Uncertainty can suppress innovation and limit entrepreneurial efforts, weakening the overall strength of the economy. As a result, the economic landscape becomes less competitive, risking the loss of talent and motivation among young professionals and innovators seeking growth opportunities.

In summary, the implications of suspending USAID funding are complex, affecting governance, social programs, emergency response capabilities, and Pakistan's vibrant culture. These challenges underscore the importance of maintaining a steady flow of international aid to sustain progress in key sectors and build a resilient economy. In recent years, USAID funds to Pakistan have reflected both the obstacles and opportunities of international development. Moving forward, it’s necessary to understand how this funding influences Pakistan's development outcomes. Funds have been allocated to sectors such as education, health, and agriculture. Each of these areas is crucial for improving the country's stability and sustainable growth.
However, the question remains: are these efforts truly effective?

An important challenge noted by experts is the dependency that can develop from foreign aid. While financial support can help fund programs and services, it can also make local authorities and communities overly dependent on external assistance. This dependency can hinder the growth of local capacities and initiatives, raising concerns about the long-term sustainability of the results achieved. As Doud points out, responsible donation is needed to ensure that funding not only provides temporary relief but also encourages lasting progress.

Furthermore, the connection between financing and national stability cannot be ignored. When funding is halted due to political tensions or disagreements, programs come to a stop, causing setbacks in development outcomes. These disruptions often affect vulnerable populations, widening the gap between those in need and the resources available to them. As Singh, Ritchie, and Chen noted, such financing disruptions can lead to instability, which, in turn, can weaken the capacity of civil society to thrive and contribute to national progress.

Civil society plays an integral role in connecting government efforts with community needs. When USAID funding supports local groups, it boosts their ability to advocate for their communities. However, inconsistent funding or sudden cuts can weaken these groups and limit their capacity to create change. Ogieuhi et al. affirm that a strong civil society is the foundation of a stable state, and without support, these organizations may struggle to fulfill their roles effectively.

Therefore, although USAID financing has the potential to bring about significant change in Pakistan, notable challenges and risks are associated with it. The connection between aid, state stability, and civil society highlights the complex dynamics within the development landscape.

As we move forward, it will be essential to address these challenges and capitalize on opportunities to ensure that USAID funding not only produces immediate results but also fosters a sustainable path for Pakistan's growth. Maintaining this balance will require ongoing collaboration and strategic planning to manage the complex network of dependencies created by foreign aid.