The suspension of USAID funding has left 530 Pakistani students from flood-affected areas struggling to finance their education, raising concerns over the future of the Merit and Needs-Based Scholarship Programme.
The affected students, currently enrolled in undergraduate programmes at 30 partner universities, were receiving financial aid under a USAID-funded initiative managed by the Higher Education Commission (HEC).
The programme, designed to support underprivileged students, was set to continue until June 2026. However, with the abrupt halt in funding many students now face an uncertain academic future.
The funding cut is part of a broader reduction in US foreign aid under the “America First” policy, which led to the suspension of multiple USAID initiatives across Pakistan. The $30.7 million scholarship program was among those affected, significantly impacting students from low-income backgrounds, particularly those from regions 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 had pledged Rs2.37 billion as a grant, while HEC contributed Rs577.1 million in kind.
Initially designed to run for 90 months, the project was extended to June 2025. A request to further extend it to June 2026, to accommodate the remaining students, is now uncertain due to the funding shortfall.
The programme initially aimed to award 3,000 scholarships, including 1,970 for undergraduate students and 1,030 for graduate students. However, due to exchange rate fluctuations, the project generated additional savings, allowing HEC to distribute an additional 1,868 scholarships, bringing the total number of recipients to 4,868. Among them, 530 students, specifically from flood-hit regions, were granted scholarships in 2022 with approval from USAID and the Ministry of Economic Affairs.
Of the total recipients, 2,767 were undergraduate students and 2,101 were graduate students. So far, 4,142 students, including 2,094 undergraduate and 2,048 graduate, have completed their studies. However, the remaining 530 students, still enrolled in their respective universities, were expecting to complete their degrees by June 2026.
With the sudden halt in USAID funding, universities and the HEC are struggling to keep the programme operational. Students from flood-affected areas, who had pinned their hopes on the scholarships, now face financial difficulties that could force them to abandon their education.
The programme was not just limited to providing scholarships. Its Capacity Building and Staff Training component was also expanded over time. Initially covering 30 universities, it was later extended to 70, including 40 additional public-sector universities, particularly those under the Benazir Income Support Programme (BISP) Undergraduate Scholarships. Many students in Khyber-Pakhtunkhwa, Balochistan, Sindh, and South Punjab, including female students in women’s universities, benefited from this expansion. Furthermore, at least five training courses were conducted annually under this initiative. However, with USAID’s withdrawal, most of these capacity-building programmes have also come to an abrupt halt.
The suspension of USAID funding has broader implications beyond higher education. The agency, established in 1961 under President John F. Kennedy, has been a cornerstone of US foreign policy, supporting global development efforts in various sectors, including education, energy, democracy, human rights, economic development, governance, health, and humanitarian assistance. In 2023 alone, USAID disbursed $43.79 billion in assistance to over 130 countries.
Pakistan has been a key beneficiary of USAID-funded projects, with 39 major initiatives covering a wide range of sectors. The decision to withdraw funding has put several of these programmes in jeopardy, leaving thousands of beneficiaries uncertain about their future.
Despite repeated attempts, concerned quarters from HEC were unavailable for comment. Meanwhile, the affected students, many from disadvantaged backgrounds, face an uncertain future with no clarity on whether the programme will be revived while leaving their academic ambitions hanging in the balance.