One decision of Trump and the back of India’s 3 neighbours broke… Big blow to Bangladesh and Pakistan

Donald Trump’s decision has dealt a big blow to countries like Pakistan and Bangladesh (Photo- Reuters)

Due to Donald Trump’s order, the aid given by America to the countries of the world for development work has stopped. India’s neighboring countries Pakistan and Nepal are dependent on American aid and these countries have suffered a big setback due to the stoppage of aid.

As soon as America’s new President Donald Trump came to power, he made many such announcements which have given sleepless nights to the countries of the world. One of his decisions has put India’s neighbours like Pakistan, Bangladesh and Nepal in trouble. The US State Department announced the suspension of all foreign aid under the America First agenda. According to US officials, only after re-evaluation, America will decide whether these countries should be given economic help or not. Till then, all the aid programs being run by America in the countries of the world have been suspended.

One of the executive orders Trump signed after taking the oath of office on January 20 was about foreign aid. He ordered all federal agencies to immediately stop funding for development abroad for 90 days and evaluate the development programs currently underway.

After this, the US State Department also issued a memorandum announcing that the US has banned almost all new funding for foreign aid programs. Israel, Egypt and America’s main Middle Eastern allies have been excluded from this suspension.

On Sunday January 26, 2025 , the ministry said, ‘President Trump has made it clear that if the American people do not benefit, he is not going to spend indiscriminately anywhere.’
The US is the single largest donor to aid worldwide. In 2023, it distributed $72 billion in foreign aid, including $401 million to Bangladesh and $232 million to Pakistan through the United States Agency for International Development (USAID).

Pakistan suffers a major setback

Many development projects are being run with US aid in Pakistan, which is going through economic crisis. But these projects have stopped due to Trump’s order. The Ambassador Fund for cultural preservation projects in Pakistan has been suspended and five important projects in the energy sector have been stopped. Trump’s order has also affected four programs related to economic development in Pakistan and aid to five agricultural development projects has been stopped.

Apart from all this, funding for democracy, human rights and governance-related programs has also been temporarily stopped. Four education and four health projects have also been suspended. The US decision has affected 11 governance-related projects.

US officials said the decision is temporary and the future of these projects will be decided after re-evaluating all aid programs.

According to the information available on the official website of the US Embassy and Consulate in Pakistan, in the last 20 years, the US has given Pakistan $32 billion in financial aid. According to the information available on the US government website ForeignAssistance.gov, Pakistan is the 20th largest country in the world to receive US aid.

The problems of Pakistan’s Shahbaz Sharif government have increased due to the stoppage of US aid. The country is already running on a bailout package from the International Monetary Fund. Inflation and unemployment are at their peak in Pakistan and the common people are deprived of basic facilities like education and health. In such a situation, Pakistan has suffered a major setback due to the stoppage of funding of development projects being run with US aid.

What will happen to Bangladesh, which is dependent on US aid?

Bangladesh is one of the countries to which USAID provides the most aid for development projects. Due to the financial aid from this agency, Bangladesh has been managing its economy for a long time and running education programs.

Bangladesh is at the seventh place among the top 10 countries to which the US gives the most aid for development work. According to a report by Foreign Assistance.Gov released in December last year, that year the US provided aid of $490 million to Bangladesh.
Bangladesh is dependent on US aid for its food security, education and shaky economy. Analysts say that the sudden suspension of US foreign aid could further worsen Bangladesh’s ailing economy and its efforts to hold elections could also be affected. They have warned that programs running in the fields of health, education, etc. with US aid in Bangladesh could be in danger.

Trump’s order to stop foreign aid is a big setback for the interim government of Bangladesh led by Nobel laureate Muhammad Yunus. In August last year, Sheikh Hasina had to resign from the post of Prime Minister and flee to India due to the violent student movement. Bangladesh, which became unstable during the student movement, has still not become stable.
Before the Covid-19 pandemic, Bangladesh’s economy was performing well, but after this the country got trapped in inflation, unemployment and heavy foreign debt. Communal violence is also increasing in the country after Sheikh Hasina’s departure, which is threatening the efforts to bring political stability in the country.

Sriradha Dutta, a professor of international affairs at Jindal Global University in northern India, told the Hong Kong newspaper South China Morning Post, “Stopping USAID aid will have consequences because many projects are being run with its help.” She said that the Republican administration often cuts aid and reviews projects every time this party takes office.Sriradha Dutta said .

She further said that the Trump administration will provide financial aid only to those projects which are in line with their foreign policy objectives. Dutta said that clean drinking water and computers are supplied to Bangladesh schools with US aid. He said that if the US withdraws this aid forever, it will have a profound impact on Bangladesh. US projects also stopped in Nepal

India’s neighboring country Nepal also receives huge amount of US aid. Nepal is the 19th country in the world to receive US aid for development work.

Since 1951, USAID has given $1.5 billion in aid to Nepal. In the financial year 2020-21, the US gave $105.94 million to Nepal and $125 million in 2018-19.

Programs like health, education, agriculture, infrastructure, economic development, humanitarian aid and women and child empowerment are running in Nepal with US aid.

21 programs are running in Nepal with the support of USAID. Trump’s decision has affected all these programs. If after evaluation, America decides not to help these programs, then Nepal will suffer a big blow.