The fallout from the cancellation of USAID contracts has spread across the think tank world. Many think tanks have been directly affected – others are impacted by sudden changes in their communities.
While the USAID cancellations have affected think tanks primarily in the Global South, U.S.-based think tanks have also suffered significant losses as federal funds for grants were cancelled, too. Furthermore, the Trump Administration has moved to close or significantly reduce the operations of think tanks and think tank-like institutions such as the U.S. Institute of Peace, the Wilson Center, the Inter-American Foundation, the United States African Development Foundation, and the Institute of Museum and Library Services.
In response, Accountability Lab and Development Gateway launched a survey to assess the impact of funding cuts on organisations, not just think tanks. Based on the early findings of the survey, I reached out to Fayyaz Yaseen, Accountability Lab Pakistan’s executive director, to discuss the impact funding cuts were having on think tanks in Pakistan and what could be done about it.
Enrique Mendizabal: Thanks, Fayyaz, for taking the time. How’s everything on your end?
Fayyaz Yaseen: Things have been complicated, Enrique. The recent political climate has devastated much of Pakistan’s think tank and civil society sector. International funding has nearly disappeared overnight.
Enrique: I saw Jenny La’s piece on governance funding, noting Pakistan and Peru among countries already losing substantial funding in recent years, precisely when the political situation was getting worse! Do you see this recent situation as an acceleration of an existing trend?
Fayyaz: Yes, over the past few years, most donors have shifted their focus to other regions, leaving the Pakistani social sector starving for funds. Also, recent actions by the Pakistani government have intensified the closure of civic space, expelling donors, muzzling social and political activists, and have drastically accelerated this crisis. Both local and international donors face multiple barriers, like the government’s refusal to issue non-objection certificates (NOCs).
Enrique: I know Accountability Lab Pakistan was significantly affected. What specific impacts are you experiencing?
Fayyaz: Our organization in Pakistan alone lost about 60% of our budget. Globally, our network saw around $2 million disappear. Other immediate effects include layoffs across the sector, salary cuts, and significant scaling back of programs.
Enrique: Has there been any meaningful response from international foundations?
Fayyaz: Very limited. Initially, there was hope that global foundations might fill the gap left by bilateral donors like USAID. But in reality, most foundations have only marginally increased their contributions. Meta, for instance, shifted away from supporting sensitive civic education and diversity issues toward safer, business-related topics. Other donors are taking their time in reading the situation and are apparently reluctant to step in or to be seen opposing the Trump Administration’s agenda one way or the other.
Enrique: This reminds me of conversations about mergers among civil society organisations as a solution.+ But I’m cautious —it feels like a very useful concept that’s hard to apply meaningfully in this particular context. What’s your take?
Fayyaz: Exactly. The idea of mergers is appealing on paper but challenging in practice. Development organisations and think tanks are mission-oriented organisations. They regularly collaborate where their partnership can add value, but they aren’t experienced in mergers like corporations are. Often, mergers in such tough times become more about acquisition than genuine integration, risking the loss of mission or independence.
Enrique: That’s precisely my concern—if you’re merging because you’re financially stressed, it’s really an acquisition. But also, I think it may fail to recognise that think tanks and NGOs more broadly are more than just organisations. They are sometimes the entire careers of their founders and leaders, they are the only jobs available for them in their countries; there is an element of emotion that cannot just be brushed aside in the short term.
What alternative strategies might be more viable?
Fayyaz: We need a new sustainability model. Local philanthropy has traditionally supported basic services like healthcare or education, but rarely touches sensitive political or democratic issues. Think tanks must become comfortable exploring business-oriented models like social enterprises, consultancies, or other income-generating activities. The stigma around “business” within non-profits needs to change.
Enrique: That resonates with me. Typically, think tanks have often understood “diversifying funding” as simply adding more international donors to their funding pool. Real diversification should encompass developing new income streams like training, consulting, or even membership models. Another aspect might be thinking about sustainability differently—not necessarily aiming for perpetual existence but adapting fluidly as situations change.
Fayyaz: Exactly. Fluidity and adaptability might be the new sustainability. Organisations might need to shrink, close temporarily, or even re-emerge in different forms depending on the circumstances.
Enrique: And funders need to understand this. Given all this, there’s real concern we’ll lose significant momentum in terms of societal advancement, isn’t there?
Fayyaz: Yes, and it’s broader than just organisational impact. Entire societal advancements in education, healthcare, and climate responses —historically driven by international funding and think tank work—are at risk. We may lose decades of progress.
Enrique: It’s a sobering thought. We need a new investment in think tanks—in defending hard-fought gains. Personally, how are you managing through all this?
Fayyaz: Despite everything, Accountability Lab Pakistan remains resilient. Thankfully, we’ve managed resources in a way that gives us a bit more stability than many others. Still, like everyone else, we’re cautious, watching closely how the situation unfolds.
Enrique: I appreciate your openness, Fayyaz. These conversations are essential, even though they’re tough.
Fayyaz: Thank you, Enrique. We’ll continue adapting, innovating, and hopefully sustaining our critical work amidst this turbulence.
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