Since last four or five decades financial aid has remained a major source of finance for underdeveloped and developing countries. Despite giving impressively large amount of aid donors are disappointed in getting to the mark of achieving the good image and favourability from beneficiaries. Hence to create awareness and developing good image amongst the recipient nations, donors have started financial aid branding (Reinhardt, 2010). The basic intent of the present study is to investigate the rationale and impact of financial aid branding to shape public perception about donors. This inquiry is informed by qualitative inductive approach based on semi-structured interviews, conducted from a sample of twenty four Pakistani citizens.

The research findings revealed that USAID is the most popular donor amongst Pakistani nation because of intensive branding strategy as compare to other bilateral aid donors. USAID is making its contribution visible through all possible mediums (electronic and print media). The most prominent strategy used is to adhere USAID logo on all items that recipients receive under USAID grant, with a prime motive to revert negative sentiments of Pakistanis and win their minds and hearts. The results exposed that branding have somehow positive impact on people sentiments. But minds and hearts of people, who are well aware of the underlying motives of America, cannot be easily compelled to believe otherwise.