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In a significant development for Pakistan, USAID has resumed funding for two major initiatives, the Merit Scholarship under the Pakistan University Student Program (Phase II) and the FATA Infrastructure Program, signaling renewed bilateral cooperation under US President Donald Trump’s administration.
The US Embassy in Islamabad confirmed the resumption of these aid programs, stating that USAID is realigning its foreign assistance efforts in Pakistan to support both critical humanitarian work and strategic development.
A spokesperson from the embassy highlighted the continued American commitment to initiatives that benefit both nations.
“We still support life-saving programs and are making strategic investments that make our partners stronger and our nation stronger,” the spokesperson noted.
Previously, USAID channeled its funding through both Government-to-Government (G2G) partnerships and local NGOs operating within Pakistan. Current discussions between the US Embassy and Pakistan’s Economic Affairs Division aim to expand USAID’s footprint in the country while emphasizing transparency and accountability, particularly in direct funding to NGOs.
Washington had earlier halted financial support, which led to over 530 Pakistani students—mainly from flood-affected regions—struggling to continue their studies under the Merit and Needs-Based Scholarship Program (MNBSP). The freeze severely disrupted their education and created uncertainty for low-income scholars.
Pakistani officials have welcomed the renewed support, stating that it will enhance the monitoring of aid disbursement and help align international assistance with the country’s national development priorities.
The revival of the Merit Scholarship and FATA Infrastructure Program marks a fresh chapter in the enduring Pakistan-US development partnership, offering renewed momentum to joint efforts in education and infrastructure.
