International Funding

This was the first major disaster to strike since the Trump administration suspended US foreign aid to Afghanistan in January. While Washington released statements of sympathy, it has made no formal pledge of direct financial assistance to quake relief.

Large projects like the Mes Aynak copper deposit, the vast iron ore reserve at Hajigak, the Balkhab copper prospects, and rich gemstone deposits in Badakhshan have long drawn interest from potential foreign partners.

The rollover, agreed after high-level talks in Malé, reflects India’s continued financial support to its maritime neighbour and long-standing development partner.

Japan’s grant for dairy development is designed to empower smallholder farmers, who form the backbone of the country’s dairy production. The funding will go towards modernising farming practices, improving milk quality and safety, and introducing sustainable methods to make dairy farming more profitable and resilient.

The Asian Development Bank (ADB) has approved a $126.42 million loan along with $1 million in technical assistance to promote sustainable and climate-resilient tourism in Uttarakhand’s Tehri Lake area, one of the state’s most vulnerable and economically disadvantaged regions.

Recent tariff negotiations have also strengthened Pakistan’s position. Islamabad successfully reduced US reciprocal tariffs from 29 per cent to 19 per cent, a move projected to enhance access to US markets.

In a move signalling a profound shift in Pakistan’s infrastructure financing and geopolitical posture, China has withdrawn from financing the pivotal Main Line-1 (ML-1) railway project, a cornerstone of the China–Pakistan Economic Corridor (CPEC)

At the Sixth Trilateral Foreign Ministers’ Dialogue held in Kabul on 20 August 2025, Afghan Acting Foreign Minister Amir Khan Muttaqi, Chinese Foreign Minister Wang Yi, and Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar reached a landmark agreement to extend CPEC into Afghanistan.