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.
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.
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.
