Not sure if it's a correct assessment.

I remember reading a USACA bankruptcy report last month or so and it looked like ICC stopped USACA funding for like 1-2 quarters, mainly due to their accounting %uckups and the amount was more or less the same as $200K.

This is a recent report.
https://economictimes.indiatimes.com/news/sports/usa-cricket-cash-flow-situation-critical-icc-suspends-funding-for-third-quarter-report/articleshow/94595230.cms

If you are referring to last T20 WC then it was England not Australia that beat Pakistan after a tense fight. I don't think India in current form can be classified as competitive team (just an average team), Pakistan right now is as good as good as any other test team. The issue with Pakistan is there struggling middle order, if they can find few players that can play well at number 4,5 and 6 position then they have bowling lineup that can easily win the match. 

In subcontinent most of the boards are not having any well settled system which helps players, and they can do good for the long term most of the time we have issues of nepotism and personal like and dislikes which is surely killing merit and talent of the many youths even in many areas we have serious domestic issues which never allow having positive development for the progress of the game.

In recent years, we have few good changes in Pakistan domestic system but still it's never been easy to adopt them and have positive results from this all because political influence and many other aspects are creating mess up which never allowing to have strong system with merit and helpful for quality players to give their best just because of this when they are playing in SENA countries they never have confident mostly they play under pressure and lost games narrowly.

Their cricket has improved. The current T20 squad returning from the final in most of the big tournaments. They have lacking in some places otherwise i would say that this is one of the good teams. Maybe everyone in the cricket area is expressing the same thing that Pakistan needs some good batting. The formation of a team that does not have to be dependent on top order, is very important for Pakistan cricket.

Pakistan has much stronger and quality teams in past as well but still their main problem was they had never been predictable which is surely amazing stuff for some cases, but recently they are improving, but now they are not having a strong unit which give them good fight until end most of the time they are depended on just two or three players which is not ideal situation if they want to have good mark on the game then surely they need to work on domestic with strong system and strategy which give them good unit and better replacements which helps them in International matches right now they have short list which is surely not good for their campaign in all three formats with right now England, India and Australia are having big edge which need to cover with their performance and quality instead of numbers.

This not only fits to Pakistan many other countries are also losing quality due to too much involvement of Franchise cricket which is all about power hitting instead of technique and skills just few countries are having level, but this is also far from which few have around 15 to 20 years back now it's all about money and time pass like Soccer players are doing in world in next few years things could be more the worst about the technique and quality of cricket because we have few big leagues are not attracting players in T10 league and The Hundred.

Pakistan's domestic setup is also not world-class even they have good funds and things to manage this but corruption which is the biggest issue in third world countries which preventing to have fair system and better things for bringing quality players in system whereas Australia and England are much stronger in this case.

I will not deny the fact that Pakistan is one of the top teams, capable of defeating the pig-3 in ICC tournaments. But the main issue is with consistency. Even top players such as Babar Azam and Shaheen Shah Afridi are being inconsistent nowadays. And this is one of the reasons why they are failing to win ICC tournaments recently. There is so much talent within Pakistan, but despite all that the full potential is not being reached. One thing the PCB can do is to give the U-23 and A teams more exposure by conducting foreign tours. That will strengthen their player pool.  

Pakistan cricket board has lots of problems to deal with. And the fact that Pakistan could not host international cricket for a long time has been a big problem for them. Obviously when a country is not being able to host international cricket, and that has also been the case for so long, the parents of a lot of young kids who are interested in cricket are obviously more likely to say that cricket is not the right path to choose. At least not professionally. And that also causes a lot of problems.

Another thing that I am not very sure about but I have my doubts is that the Pakistan cricket board has a few corrupt individuals. They are also not helping the improvement of Pakistan cricket. And another thing is that as long as the selectors are not going to be unbiased, the national team is not going to improve.

Pakistan has produced a lot of world-class players. But I agree with you that the setup of Pakistan cricket is not very good, to be honest. And domestic setup is obviously not as it should be.

The country had a big break in hosting tournaments. The same keeps them down. They're are at the beginning of building new cricketing infrastructure within the country. As mentioned the domestic cricket is good, but not to the level of neighbouring countries. The Pakistan Super League is another setback, taking the revenue into consideration the importance might've moved towards it. Corruption is all around and there will be corrupt hands that truly destruct the progress.

Domestic cricket was always a concern for Pakistan. Previously it used to be dominated by the club sides, but then the PCB rightly moved to a province-based setup. The current setup has improved the quality a lot, although a lot of work still needs to be done. Asking some of the national team members to take part in the domestic matches, and telecasting some of the important matches on TV can be very helpful. Also, it will be a good idea to have some of these domestic teams to visit SENA nations once in a while, for friendly matches against county or Sheffield Shield teams.