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Summary:
A stable, democratic, economically thriving Pakistan is considered vital to U.S. interests in Asia. Key U.S. concerns regarding Pakistan include regional terrorism; PakistanAfghanistan relations; weapons proliferation; the ongoing Kashmir problem and PakistanIndia 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 counterterrorism efforts. Top U.S. officials regularly praise Islamabad for its ongoing cooperation, although 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. Since late 2003, Pakistan's army has been conducting unprecedented counterterrorism operations in traditionally autonomous western tribal areas. A potential 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 May 1998; the tests triggered restrictions on U.S. aid to both countries (remaining nuclear-related sanctions on Pakistan were waived in October 2001). Pakistan and India have fought three wars since 1947. Recently, the United States has been troubled by evidence of "onward" proliferation of Pakistani nuclear technology to third parties, including North Korea, Iran, and Libya. Such evidence became stark in February 2004. Separatist violence in India's Muslimmajority Jammu and Kashmir state has continued unabated since 1989. India has blamed Pakistan for the infiltration of Islamic militants into Indian Kashmir, a charge Islamabad denies. The United States reportedly has received pledges from Islamabad that all "cross-border terrorism" would cease and that any terrorist facilities in Pakistani-controlled areas would be closed. Similar pledges have been made to India. The United States strongly encourages maintenance of a cease-fire along the Kashmiri Line of Control and cont i n ued substantive dialogue between Islamabad and New Delhi. Pakistan's macroeconomic indicators have turned positive since 2001, but widespread poverty persists. Democracy has fared poorly in Pakistan; the country has endured direct military rule for half of its existence. In 1999, the elected government was ousted in a coup led by Army Chief Gen. Pervez Musharraf, who later assumed the title of president. Supreme Court-ordered elections in 2002 seated a new civilian government (Musharraf ally Shaukat Aziz is prime minister), but it remains weak, and Musharraf has retained his position as army chief. The United States strongly urges the restoration of fully functioning democracy in Islamabad and expects Pakistan's planned 2007 general elections to be free and fair throughout the entire process. Congress has granted President Bush authority to waive coup-related aid sanctions through FY2006. Pakistan is among the world's leading recipients of U.S. aid, obtaining some $2.63 billion in direct U.S. assistance for FY2002FY2005, including $1 billion in securityrelated aid. Pakistan also has received billions of dollars in reimbursement for its support of U.S.-led counterterrorism operations in South Asia. See also CRS Report RL32259, Terrorism in South Asia; and CRS Report RL32615, Pakistan's Domestic Political Developments.
