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Summary:
Key areas of U.S. concern regarding Pakistan include regional terrorism; weapons proliferation; the ongoing Kashmir dispute and Pakistan-India tensions; human rights protection; 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 pivotal ally in U.S.-led anti-terrorism efforts in Southwest Asia. Top U.S. officials regularly praise Islamabad for its ongoing cooperation, although doubts exist about Islamabad's commitment to core U.S. interests in the region. Pakistan is identified as a base for terrorist groups and their supporters operating in Kashmir, India, and Afghanistan. Pakistan continues to face serious problems, including widespread poverty and domestic terrorism. A potential Pakistan-India 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 May 1998; the tests triggered restrictions on U.S. aid to both countries (remaining nuclearrelated sanctions on Pakistan were waived in October 2001). South Asia is viewed by many analysts as a high-risk arena for the use of nuclear weapons, as both countries have institutionalized nuclear command structures and deployed nuclear-capable ballistic missiles. Pakistan and India have fought three full-scale wars since 1947. Separatist violence in the disputed Kashmir region has continued unabated since 1989. India blames Pakistan for the ongoing infiltration of Islamic militants into Indian Kashmir, a charge Islamabad denies. The United States has received pledges from Islamabad that all "cross-border terrorism" would cease and that any terrorist training camps in Pakistanicontrolled areas would be closed. The United States strongly encourages a cease-fire along the Line of Control and renewed dialogue between Islamabad and New Delhi. A stable, democratic, economically thriving Pakistan is vital to U.S. interests in South and Central Asia. Democracy has faired poorly in Pakistan; the country has endured three military coups and military rule for half of its existence. In 1999, the government of Prime Minister Nawaz Sharif was ousted in an extra-constitutional coup led by A r m y C h i ef G en . P erv ez M u s h a r r a f . Musharraf has since assumed the title of President, a move ostensibly legitimized by a controversial 2002 referendum. National elections held in October 2002 resulted in no clear majority party emerging but were marked by significant gains for a coalition of Islamic parties. A National Assembly and Prime Minister Jamali were seated in November 2002, but the civilian government remains stalled on procedural issues related to the legality of constitutional changes made by Musharraf in August 2002 and to his status as Army Chief. The United States strongly urges the Musharraf government to restore the country to civilian democratic rule. Congress granted the President authority to waive couprelated sanctions on Pakistan through FY2004. Pakistan received more than $1.5 billion in U.S. assistance for FY2002 and FY2003. In June 2003, President Bush pledged to work with Congress on establishing a five-year, $3 billion aid package for Pakistan to begin in FY2005. See also CRS Report RS21584, Pakistan: Chronology of Events, CRS Report RS21299, Pakistan's Domestic Political Developments, and CRS Report RL31624, Pakistan-U.S. Anti-Terrorism Cooperation.
