This move follows after President Donald Trump initiated a 90-day pause on all U.S. foreign aid in January 2025, to reevaluate and realign international assistance priorities.

The two programs receiving renewed support are:

1.     Pakistani University Student Program Phase II (Merit Scholarships): financial aid will be provided through this initiative to students from underprivileged backgrounds, particularly those from flood-affected regions, enabling them to pursue higher education at partner universities.

2.     FATA Infrastructure Development Program: this program aims to promote regional development and stability by focusing on enhancing and rebuilding infrastructure in the former Federally Administered Tribal Areas (FATA).

The importance of transparency and accountability in fund distribution was emphasized in the discussions, especially concerning non-governmental organizations (NGOs) operating in Pakistan. Through direct government-to-government (G2G) channels between Pakistan s Economic Affairs Division and the US Embassy in Islamabad, the resumption of funding for these programs was confirmed.

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Many other USAID initiatives remain on hold while these two programs have been reinstated. The broader freeze affected over $845 million in aid, impacting sectors such as health, education, agriculture, and governance.

As per US officials, additional programs may be restored in the future contingent upon the establishment of robust monitoring mechanisms and ongoing reviews.
The aim is to ensure that aid aligns with Pakistan s national development priorities.

Through this partial restoration of aid, the enduring partnership between the United States and Pakistan has been highlighted.