The abrupt suspension of USAID funding has left 530 Pakistani students from flood-affected areas struggling to finance their education, jeopardizing the future of the Merit and Needs-Based Scholarship Programme.
The affected students, currently enrolled in undergraduate programs at 30 partner universities, were receiving financial aid through a USAID-funded initiative managed by the Higher Education Commission (HEC). Initially set to continue until June 2026, the programme now faces an uncertain future due to the sudden funding halt.
Funding Suspension and Its Impact
The USAID funding cut is part of broader reductions in US foreign aid under the “America First” policy, leading to the suspension of multiple initiatives across Pakistan. The $30.7 million scholarship programme was among the casualties, severely impacting students from low-income backgrounds, particularly those from areas devastated by the 2022 floods.
According to official documents, the Pak-USAID Merit and Needs-Based Scholarship Programme (Phase-II) was originally approved by the Executive Committee of the National Economic Council (ECNEC) in October 2013, with a total cost of Rs2.95 billion. USAID pledged Rs2.37 billion as a grant, while HEC contributed Rs577.1 million in kind. Initially planned for 90 months, the project was extended to June 2025, with a request for further extension until June 2026 now in jeopardy due to the funding shortfall.
Programme Expansion and Student Uncertainty
Originally aimed at awarding 3,000 scholarships—1,970 for undergraduate and 1,030 for graduate students—the project benefited from exchange rate fluctuations, allowing HEC to allocate an additional 1,868 scholarships. This brought the total number of beneficiaries to 4,868, including 530 students from flood-hit areas who received scholarships in 2022 with approval from USAID and the Ministry of Economic Affairs.
So far, 4,142 students, including 2,094 undergraduates and 2,048 graduates, have completed their studies. However, the remaining 530 students, still pursuing their degrees, were relying on the programme’s continuation until 2026. With the withdrawal of USAID support, many now face financial hardship, forcing them to reconsider their academic future.
Institutional Challenges
The programme also aimed to enhance institutional capacity and staff training, initially supporting 30 universities before expanding to 70, incorporating 40 additional public-sector institutions, particularly those linked to the Benazir Income Support Programme (BISP) Undergraduate Scholarships. Many students from Khyber Pakhtunkhwa, Balochistan, Sindh, and South Punjab, including female students at women’s universities, benefited from this initiative. However, with USAID’s exit, these capacity-building efforts have also come to an abrupt halt.
Beyond education, the funding cut raises concerns about the future of US-Pakistan development cooperation. Since its establishment in 1961 under President John F. Kennedy, USAID has played a critical role in global development, supporting sectors such as energy, democracy, human rights, economic development, governance, health, and humanitarian aid. In 2023 alone, USAID disbursed $43.79 billion in assistance to over 130 countries, with Pakistan being a major recipient. The suspension of funding puts several ongoing projects at risk, affecting thousands of beneficiaries.
No Official Response
Despite repeated attempts, HEC officials, including Dr. Shaista Sohail and Dr. Ziaul Qayyum, were unavailable for comment. Meanwhile, the affected students, many from underprivileged backgrounds, remain in limbo, unsure whether the programme will be revived or if they will be forced to abandon their academic ambitions.
