By Sana Khethran
Background:
With the halt of funding from United States of America through USAID (United States Agency for International Development) to the development sector in Pakistan, first tier organizations that are INGOs have mainly suffered with termination of developmental projects immediately and with trickle-down effect upon NGOs that could not carry out implementation of projects without partnership with the first-tier level INGOs, hence would not be able to serve the communities. A number of NGOs that were largely dependent upon U.S grant for each year having funding through submission of innovative projects and winning the grant by going through a competitive process have started realizing the gap. As, the U.S has terminated the projects by not extending the support, the cost is much higher, as when the project is terminated the cost and time incurred go to waste of effort resulting in the negative impact. The U.S Stop order has resulted in not less than a 7 billion $ funding gap only in Pakistan. This has created a huge gap.
What will happen next?
Such termination of development projects has given us a lesson learned that any funding can be halted by the primary donor anytime wherein the major loss will be incurred upon the implementing partner. In future we may see reduction in the size of grants from other donors in Pakistan. This is because the tariffs have been increased upon the imported goods from countries going in trade with America. And, amidst the major increase of tariff these countries like Canada, United Kingdom and European Union may reduce the budget for the cross developmental activities. On economic scenario and mapping, the war in Gaza and Ukraine and its support of U.S has given an alarming message to the world that the war cost borne by the America will affect the developing countries more. All of a sudden one of the aid based economic engines in the development sector has stopped.
What is the solution towards sustainability?
It is the high time to move towards a sustainable approach for the development sector. Sustainability is directed by inclusive growth and self-reliance. Through a discussion held on 28th of February, 2025 on ‘Paradigm Shift towards Sustainability’, Team for Development a project management consultancy in Pakistan has focused upon giving a solution to the development sector towards attaining the sustainable approach. It has been envisaged that the most reliable option is the initiation of innovative and realistic projects with product development process embedded in it so that the product can make the project self- reliant and sustainable.
Envision Pakistan by 2047:
Organizations should have five years strategy expanding in five segments over twenty-five years reaching to fulfilment and achieving the vision of a self-sustainable development sector by 2047 as Pakistan will reach to the hundred years of Independence. Vision 2047 is the mark of moving towards product embedded projects with benefit to the organizations and communities for having a self- independent and growth based, inclusive approach based economy.
