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Did INGOs’ Alleged Fund Misuse Lead to Trump’s Foreign Aid Freeze?

The activities of international non-governmental organizations (INGOs) in Pakistan have come under scrutiny due to allegations of financial mismanagement and policy interference. Concerns over INGOs misusing foreign aid are not exclusive to Pakistan; similar issues have been raised globally. This led former U.S. President Donald Trump to implement stricter oversight on foreign aid, resulting in a freeze on USAID funds.

In Pakistan, organizations like Save the Children were previously banned over alleged intelligence links, though the restriction was later lifted. More recently, the Ministry of Interior launched an inquiry into the Campaign for Tobacco-Free Kids (CTFK) and Vital Strategies (VS), both funded by Bloomberg Philanthropies. These organizations allegedly operated without proper registration and contributed to the unchecked growth of illicit cigarette trade, causing an estimated PKR 300 billion tax revenue loss.

As concerns grew over INGOs’ financial transparency, Trump froze over $845 million in USAID funding, suspending 39 projects in key sectors like education, energy, and economic development. Speculations suggest that $17 billion in aid may have been misused, fueling debates on the accountability of INGOs and the effectiveness of international funding.