Pakistan’s Aid Sector in Crisis

Pakistan’s aid sector is buckling under the weight of reduced funding, mismanagement, and geopolitical tensions, threatening critical health and infrastructure programs. Recent cuts from global donors, coupled with domestic challenges, have exposed the fragility of the nation’s development framework, raising alarms about long-term economic stability.

The Global Fund to Fight AIDS, Tuberculosis, and Malaria has slashed its financial support to Pakistan, citing global funding pressures and the need to reprioritize allocations. This reduction has hit the National Tuberculosis (TB) Control Program hard, with its budget dropping from $145.7 million to $129.9 million, and the HIV/AIDS program losing over $4 million, according to The News. Health experts warn that these cuts could reverse gains in combating infectious diseases, with civil society groups urging immediate action to restore funding. “The ripple effects are devastating for communities already stretched thin,” said Dr. Ayesha Khan, a public health advocate in Islamabad. Pakistan’s Ministry of National Health Services is scrambling to fill leadership gaps, but without transparent appointments, the fight against these diseases risks stalling.

Infrastructure development is also reeling. The United States Agency for International Development (USAID) suspended $845 million in aid due to concerns over corruption and mismanagement, particularly in education projects like school construction and scholarships. This move, reported on X, underscores a growing skepticism among Western donors about Pakistan’s ability to manage funds effectively. Meanwhile, the Asian Development Bank (ADB) approved an $800 million package to bolster fiscal sustainability, but India’s objections citing Pakistan’s rising defense spending and declining tax-to-GDP ratio highlight geopolitical hurdles. “Funds meant for development are too often diverted elsewhere,” an Indian official noted, per Business Today.

Despite these setbacks, some bright spots remain. Saudi Arabia’s KSrelief agency launched the third phase of its food security project, reflecting continued support from Gulf allies. However, Pakistan’s heavy reliance on external aid exposes a deeper issue: a failure to build internal revenue capacity. The All Pakistan Business Forum (APBF) has praised recent economic reforms, but as Bloomberg Intelligence reports, sustaining growth requires reducing dependence on foreign loans. Without bold policy shifts, Pakistan’s aid sector and its broader development goals risk unraveling further, leaving millions vulnerable.