A stable, democratic, prosperous Pakistan is considered vital to U.S. interests. U.S. concerns
regarding Pakistan include regional and global terrorism; Afghan stability; democratization and
human rights protection; the ongoing Kashmir problem and Pakistan-India tensions; and
economic development. A U.S.-Pakistan relationship marked by periods of both cooperation and
discord was transformed by the September 2001 terrorist attacks on the United States and the
ensuing enlistment of Pakistan as a key ally in U.S.-led counterterrorism efforts. Top U.S.
officials have praised Pakistan for its ongoing cooperation, although long-held doubts exist about
Islamabad’s commitment to some core U.S. interests. Pakistan is identified as a base for terrorist
groups and their supporters operating in Kashmir, India, and Afghanistan. Pakistan’s army has
conducted unprecedented and largely ineffectual counterterrorism operations in the country’s
western tribal areas, where Al Qaeda operatives and pro-Taliban militants are said to enjoy “safe
haven.” U.S. officials increasingly are concerned that the cross-border infiltration of Islamist
militants from Pakistan into Afghanistan is a key obstacle to defeating the Taliban insurgency.
The United States strongly encourages maintenance of a bilateral cease-fire and continued,
substantive dialogue between Pakistan and neighboring India, which have fought three wars since
1947. A perceived Pakistan-India nuclear arms race has been the focus of U.S. nonproliferation
efforts in South Asia. Attention to this issue intensified following nuclear tests by both countries
in 1998. The United States has been troubled by evidence of transfers of Pakistani nuclear
technologies and materials to third parties, including North Korea, Iran, and Libya. Such evidence
became stark in 2004, and related illicit smuggling networks may still be operative.
Pakistan’s macroeconomic indicators turned positive after 2001, with some meaningful poverty
reduction seen in this still poor country. However, economic conditions deteriorated sharply in
2008. Democracy has fared poorly in Pakistan, with the country enduring direct military rule for
more than half of its existence. In 1999, the elected government was ousted in a coup led by
Army Chief General Pervez Musharraf, who later assumed the title of president. Musharraf
retained the position as army chief until his November 2007 retirement. Late 2007 instability
included Musharraf’s six-week-long imposition of emergency rule and the assassination of
former Prime Minister and leading opposition figure Benazir Bhutto. However, February 2008
parliamentary elections were relatively credible and seated a coalition led by Bhutto’s widower,
Asif Zardari, and opposed to Musharraf’s continued rule. The coalition’s August vow to launch
impeachment proceedings spurred Musharraf to resign the presidency and exit Pakistan’s political
stage. Zardari subsequently was elected as the new President. The Bush Administration
determined that a democratically elected government was restored in Islamabad, thus
permanently removing coup-related aid sanctions.
The Obama Administration states an intention to continue pursuing close and mutually beneficial
relations with Islamabad. As part of its “new strategy” for Afghanistan, the Administration seeks
development of a “more coherent” Pakistan policy to include conditioning U.S. military aid to
Islamabad on that government’s progress in combating militancy and also tripling nonmilitary aid
to improve the lives of the Pakistani people. A Special Representative was appointed to
coordinate U.S. government efforts with both Pakistan and Afghanistan. Pakistan is among the
world’s leading recipients of U.S. aid, obtaining more than $5.3 billion in overt assistance since
2001, including about $3.1 billion in development and humanitarian aid. Pakistan also has
received about $6.7 billion in military reimbursements for its support of counterterrorism efforts.