Order Code IB94041
CRS Issue Brief for Congress
Received through the CRS Web
Pakistan-U.S. Relations
Updated March 10, 2002
Peter R. Blood
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
Context of the Relationship
Historical Background
U.S. 1990 Aid Cut-off
Pakistan-India Rivalry
The China Factor
Pakistan Political Setting
Background
Pakistan-U.S. Relations and Bilateral Issues
Security
Nuclear Weapons and Missile Proliferation
U.S. Nonproliferation Efforts
Congressional Action
Pakistan-U.S. Military Cooperation
Democratization and Human Rights
Democratization Efforts
Human Rights Problems
Economic Issues
Economic Reforms and Market Opening
Trade and Trade Issues
Narcotics
Terrorism


IB94041
03-10-02
Pakistan-U.S. Relations
SUMMARY
The major areas of U.S. concern in Paki-
ity to waive, for two years, sanctions imposed
stan include: nuclear nonproliferation; counter-
on Pakistan following its 1999 military coup.
terrorism; regional stability; democratization
and human rights; and economic reform and
Both Congress and the Administration
development. An ongoing Pakistan-India
consider a stable, democratic, economically
nuclear arms race, fueled by rivalry over Kash-
thriving Pakistan as key to U.S. interests in
mir, continues to be the focus of U.S.
South, Central, and West Asia. Although
nonproliferation efforts in South Asia and a
ruled by military regimes for half of its exis-
major issue in U.S. relations with both coun-
tence, from 1988-99, Pakistan had democratic
tries. This attention intensified following
governments as a result of national elections in
nuclear tests by both India and Pakistan in
1988, 1990, 1993, and 1997. Between 1988
May 1998. South Asia is viewed by some
and 1999, Benazir Bhutto, leader of the Paki-
observers as a likely prospect for use of such
stan People’s Party, and Nawaz Sharif, leader
weapons. India has developed short- and
of the Pakistan Muslim League, each served
intermediate-range missiles, and Pakistan has
twice as prime minister. Neither leader served
acquired short-range missiles from China and
a full term, being dismissed by the president
medium-range missiles from North Korea.
under constitutional provisions that have been
India and Pakistan have fought three wars
used to dismiss four governments since 1985.
since 1947.


In October 1999, the government of
U.S.-Pakistan cooperation began in the
Prime Minister Nawaz Sharif was overturned
mid-1950s as a security arrangement based on
in a bloodless coup led by Chief of Army Staff
U.S. concern over Soviet expansion and Paki-
Pervez Musharraf, who suspended the
stan’s fear of neighboring India. Cooperation
parliament and declared himself chief
reached its high point during the 1979-89
executive. In June 2001, General Musharraf
Soviet occupation of Afghanistan.
assumed the post of president. The United
U.S.-Pakistan ties weakened following the
States has strongly urged the Pakistan military
October 1990 cutoff of U.S. aid and arms
government to restore the country to civilian
sales, which were suspended by President
democratic rule. President Musharraf has
Bush under Section 620E(e) of the Foreign
pledged to honor a Pakistan Supreme Court
Assistance Act (FAA) (the so-called “Pressler
ruling ordering parliamentary elections to be
amendment”). Further U.S. sanctions were
held by late 2002. The Musharraf government
imposed on Pakistan (and India) as a result of
has begun to address Pakistan’s many pressing
their 1998 nuclear tests. The see-saw
and longstanding problems, including the
Pakistan-U.S. relationship has been on the
beleaguered economy, corruption, terrorism,
upswing following Pakistan’s enlistment as a
and poor governance. Pakistan will receive
frontline state in the U.S.-led war on terrorism
well over one billion dollars in U.S. assistance
resulting from the September 2001 attacks on
and several billion dollars from international
New York and Washington. Nuclear sanc-
organizations to help strengthen the country as
tions on Pakistan and India have been waived;
a key member of the U.S.-led anti-terrorism
Congress also has given the President author-
coalition.
Congressional Research Service ˜ The Library of Congress

IB94041
03-10-02

MOST RECENT DEVELOPMENTS
Although tensions between Pakistan and India still remain high in mid-March 2002,
the threat of imminent war seems to have been averted. The intensive diplomatic efforts of
U.S. officials have contributed to defusing a dangerous situation that has escalated after an
attack by Pakistan-based Islamic militants against the Indian parliament on December 13,
2001. The United States communicated to Pakistan that it would have to rein in Islamic
extremist groups within its borders, and by the end of 2001, Indian Foreign Minister Jaswant
Singh acknowledged for the first time that Pakistan had taken “a step in the correct
direction.” In early January 2002, Prime Minister Vajpayee and Pakistani President
Musharraf shook hands at a South Asian regional summit in Nepal, although they did not
have a one-on-one discussion as had been hoped.

In the few weeks leading up to his televised national address on January 12, President
Musharraf launched a major crackdown on Islamic groups, arresting hundreds of militants.
Musharraf’s address marked the second critical turnaround in recent Pakistani policy. The
first came when Pakistan offered its “unstinted support” to the U.S. campaign against the
Taliban militia of Afghanistan, a group the Pakistanis had previously supported. This time
Musharraf has taken an even bolder step and has announced his withdrawal of Pakistani
support for anti-Indian militants operating within Pakistan’s borders. India, however, has
refused to withdraw its troops from the border, stating that Pakistan still must do “more,”
including turning over a number of alleged terrorists on a list compiled by India and
renouncing “moral” as well as material support for all groups – even non-Pakistan based
Kashmiri – fighting Indian control of Kashmir.

In late January, tensions briefly surged again when India tested an intermediate range
missile designed to carry a nuclear warhead. Pakistan called the test provocative, but India
defended the test as having been “timed by technical factors.” On February 13, Musharraf
visited the White House, gaining pledges of new economic and debt relief support from the
Bush Administration while arguing that mediation would be needed to resolve the Kashmir
conundrum. During Musharraf’s visit to the United States, much press attention was given
to the fate of American journalist Daniel Pearl, who shortly before had been abducted in
Karachi by Islamic militants protesting Pakistan’s alliance with the United States in the anti-
terrorism coalition and demanding the repatriation of Pakistani detainees in Guantanamo
Bay who had been captured fighting with the Taliban and al Qaeda forces in Afghanistan.
When the journalist’s murder was later reported on February 22, President Musharraf
pledged to leave “no stone unturned” to bring the journalist’s executioners to justice.
Extradition talks are being held to bring the primary suspect to the United States for trial.

CRS-1

IB94041
03-10-02
BACKGROUND AND ANALYSIS
Context of the Relationship
Historical Background
The long and checkered U.S.-Pakistan relationship has its roots in the Cold War and
South Asia regional politics of the 1950s. U.S. concern about Soviet expansion and
Pakistan’s desire for security assistance against a perceived threat from India prompted the
two countries to negotiate a mutual defense assistance agreement in May 1954. By late 1955,
Pakistan had further aligned itself with the West by joining two regional defense pacts, the
South East Asia Treaty Organization (SEATO) and the Baghdad Pact (later Central Treaty
Organization, CENTO). As a result of these alliances and a 1959 U.S.-Pakistan cooperation
agreement, Pakistan received more than $700 million in military grant aid in 1955-65. U.S.
economic aid to Pakistan between 1951 and 1982 totaled more than $5 billion.
Differing expectations of the security relationship have long bedeviled ties. During the
Indo-Pakistani wars of 1965 and 1971, the United States suspended military assistance to
both sides, resulting in a cooling of the U.S.-Pakistan relationship. In the mid-1970s, new
strains arose over Pakistan’s apparent efforts to respond to India’s 1974 underground test of
a nuclear device by seeking its own capability to build a nuclear bomb. Although limited U.S.
military aid to Islamabad was resumed in 1975, it was suspended again by the Carter
Administration in April 1979, under Section 669 of the Foreign Assistance Act (FAA),
because of Pakistan’s secret construction of a uranium enrichment facility.
Following the Soviet invasion of Afghanistan in December 1979, Pakistan was again
viewed as a frontline state against Soviet expansionism. An offer to Pakistan of $400 million
in economic and security aid by the Carter Administration in early 1980 was turned down by
President Zia-ul Haq as “peanuts.” In September 1981, however, the Reagan Administration,
negotiated a $3.2 billion, 5-year economic and military aid package with Pakistan. Congress
facilitated the resumption of aid in December by adding Section 620E to the FAA, giving the
President authority to waive Section 669 for 6 years in the case of Pakistan, on grounds of
national interest. Pakistan became a funnel for arms supplies to the Afghan resistance, as well
as a camp for three million Afghan refugees.
Despite the renewal of U.S. aid and close security ties, many in Congress remained
concerned about Pakistan’s nuclear program, based, in part, on evidence of U.S. export
control violations that suggested a crash program to acquire a nuclear weapons capability.
In 1985, Section 620E(e) (the so-called Pressler amendment) was added to the FAA,
requiring the President to certify to Congress that Pakistan does not possess a nuclear
explosive device during the fiscal year for which aid is to be provided. The Pressler
amendment represented a compromise between those in Congress who thought that aid to
Pakistan should be cut off because of evidence that it was continuing to develop its nuclear
option and those who favored continued support for Pakistan’s role in opposing Soviet
occupation of Afghanistan. A $4 billion, 6-year aid package for Pakistan was signed in 1986.
U.S. 1990 Aid Cut-off. With the Soviet withdrawal from Afghanistan, beginning in
May 1988, however, Pakistan’s nuclear activities again came under close U.S. scrutiny. In
CRS-2

IB94041
03-10-02
October 1990, President Bush suspended aid to Pakistan because he was unable to make the
necessary certification to Congress. Under the provisions of the Pressler amendment, most
economic and all military aid to Pakistan was stopped and deliveries of major military
equipment suspended. Narcotics assistance of $3-5 million annually, administered by the
State Department’s Bureau of International Narcotics Matters, was exempted from the aid
cutoff. In 1992, Congress partially relaxed the scope of the aid cutoff to allow for P.L.480
food assistance and continuing support for nongovernmental organizations (NGOs). P.L. 480
food aid totaled about $5 million in both FY1997 and FY1998. The Foreign Operations
Appropriations Act for FY1996 included an amendment introduced by Senator Hank Brown
that allowed a one-time release to Pakistan of $368 million in military hardware ordered
before the 1990 aid cutoff.
One of the most serious results of the aid cutoff for Pakistan was the nondelivery of
some 71 F-16 fighter aircraft ordered in 1989. A search was made for a third country buyer
in order to reimburse Pakistan $658 million it had paid for 28 of the fighter planes. Deeply
frustrated by the nondelivery of its planes and the nonrefund of its money, the Pakistan
government reportedly considered going to court over the matter. In December 1998, the
United States agreed to pay Pakistan $324.6 million from the Judgment Fund of the U.S.
Treasury – a fund used to settle legal disputes that involve the U.S. government – as well as
provide Pakistan with $140 million in goods, including agricultural commodities.
Pakistan-India Rivalry
Three wars – in 1947-48, 1965, and 1971 – and a constant state of military preparedness
on both sides of the border have marked the half-century of bitter rivalry between India and
Pakistan. The acrimonious nature of the partition of British India into two successor states
in 1947 and the continuing dispute over Kashmir have been major sources of tension. Both
Pakistan and India have built large defense establishments – including ballistic missile
programs and nuclear weapons capability – at the cost of economic and social development.
The Kashmir problem is rooted in claims by both countries to the former princely state,
divided by a military line of control, since 1948, into the Indian state of Jammu and Kashmir
and Pakistan-controlled (Free) Kashmir. India blames Pakistan for supporting a separatist
rebellion raging in the Muslim-dominated Kashmir Valley that has claimed 30,000 lives since
1990. Pakistan admits only to lending moral and political support to the rebellion, while
accusing India of creating dissension in Pakistan’s Sindh province. (For further discussion,
see pp. 9-10.)
The China Factor. India and China fought a brief border war in 1962, and relations
between the two remained tense for three decades, each deploying troops along a line of
control that serves as the boundary. In September 1993, China and India signed an agreement
to reduce troops and maintain peace along the line of control dividing their forces. Despite
this thaw in relations, the India-China boundary has yet to be settled, and India remains
suspicious of China’s military might. India-China relations suffered a setback as a result of
statements by Indian government officials that its May 1998 nuclear tests were prompted in
large part by the China threat.
Pakistan and China, on the other hand, have enjoyed a close and mutually beneficial
relationship over the same three decades. Pakistan served as a link between Beijing and
Washington in 1971, as well as a bridge to the Muslim world for China in the 1980s. China’s
CRS-3

IB94041
03-10-02
continuing role as a major arms supplier for Pakistan began in the 1960s, and included helping
to build a number of arms factories in Pakistan, as well as supplying arms. In September
1990, China agreed to supply Pakistan with components for M-11 surface-to-surface missiles,
which brought warnings from the United States. Although it is not a member of the Missile
Technology Control Regime (MTCR), China agreed to abide by the restrictions of the
MTCR, which bans the transfer of missiles with a range of more than 300 kilometers and a
payload of more than 500 kilograms. In August 1993, the United States determined that
China had transferred to Pakistan prohibited missile technology and imposed trade sanctions
on one Pakistan and 11 Chinese entities (government ministries and aerospace companies) for
two years. A July 1995 Washington Post report quoted unnamed U.S. officials as saying that
the U.S. intelligence community had evidence that China had given Pakistan complete M-11
ballistic missiles. In February 1996, the U.S. press reported on leaked U.S. intelligence
reports alleging that China sold ring magnets to Pakistan, in 1995, that could be used in
enriching uranium for nuclear weapons. Pakistan denied the reports.
On November 21, 2000, the United States imposed 2-year sanctions on the Pakistan
Ministry of Defense and Pakistan’s Space and Upper Atmosphere Research Organization, as
well as Iranian entities, as a result of past Chinese assistance to Pakistani and Iranian missile
programs. In September 2001, the U.S. State Department again imposed 2-year sanctions
on a PRC company and Pakistan’s National Development Complex. The PRC company
reportedly delivered 12 shipments of components for Pakistan’s Shaheen missiles in early
2001. (For background and updates on China-Pakistan technology transfer, see CRS Issue
Brief IB92056, Chinese Proliferation of Weapons of Mass Destruction: Current Policy
Issues
.)
Pakistan Political Setting
On October 12, 1999, the Pakistan army under Chief of Army Staff General Pervez
Musharraf carried out a bloodless coup that deposed then-Prime Minister Nawaz Sharif and
put him under house arrest, a few hours after Sharif had announced the replacement of the
army chief. The coup reportedly followed several weeks of rumors of a power struggle
between Sharif and Musharraf. Subsequently, Sharif appeared to have resolved his dispute
with Musharraf, but then fired him without prior notice while the general was on a visit to Sri
Lanka. On October 14, General Musharraf suspended the constitution and the parliament
and named himself chief executive. In an October 18 televised address to the nation,
Musharraf pledged to: eventually restore civilian rule; reform corrupt government
institutions; revive the nation’s economy; reduce troops on the Indian border; use restraint
in nuclear weapons policy; and promote a moderate form of Islam. Nawaz Sharif and six
other defendants were charged with attempted murder and kidnaping for denying landing
access to the plane returning General Musharraf and 200 other passengers from Sri Lanka to
Karachi on October 12. The United States urged the Pakistan military government to provide
a transparent, fair, and impartial trial of the former prime minister and to set a timetable for
the restoration of democracy.
In April 2000, Nawaz Sharif was convicted of hijacking and terrorism and sentenced to
life imprisonment. Sharif’s six co-defendants, including his brother, were acquitted of all
charges. Appeals were filed. On May 12, the Pakistan Supreme Court upheld the legality of
the October coup led by General Musharraf. While ruling that widespread corruption and
economic mismanagement under the Sharif government justified the coup, the court gave the
CRS-4

IB94041
03-10-02
military government until October 12, 2002, to accomplish economic and political reform and
ordered parliamentary elections to be held no more than 90 days thereafter. On May 25,
General Musharraf stated in a press conference that he would honor the Supreme Court
timetable. In August he announced details of a controversial plan to return the country to
democracy, beginning with local council elections in to be held on a non-party basis with one-
third of the council seats to be reserved for women.
In a surprise move on December 10, 2000, the Pakistan military government pardoned
Nawaz Sharif of his prison sentence and allowed him to go into exile in Saudi Arabia, along
with 17 members of his family. Sharif was disqualified from public office for 21 years and
required to forfeit about $9 million in property. In early 2001, Sharif’s Pakistan Muslim
League (PML) and former Prime Minister Benazir Bhutto’s Pakistan People’s Party (PPP)
joined with smaller parties to form an Alliance for the Restoration of Democracy. In late
April and early May, the military government arrested hundreds of political workers in
Karachi to block a May Day rally in support of the restoration of democratic rule.
In June 2001, General Musharraf dismissed the former president, Rafiq Tarar, and
assumed the presidential post himself, while retaining his own positions as chief executive and
chief of army staff. Pakistan’s national and provincial legislatures – suspended following the
October 1999 military coup – were dissolved. President Musharraf stated his commitment
to hold national elections, as directed by the Pakistan Supreme Court, and to restore the
country to civilian rule. Musharraf gave as his rationale for assuming the presidency national
interests of political stability and the continuity and sustainability of economic reforms.
Leaders of Pakistan’s various political parties criticized General Musharraf’s action, calling
it unconstitutional. The United States expressed concern that Pakistan had taken another turn
away from democracy. On August 14, 2001, President Musharraf announced that local
elections had been completed and that elections to provincial assemblies and the parliament
will be held in October 2002. On January 24, 2002, Musharraf reiterated his commitment to
a return to democracy by stating at a conference on human development in Islamabad that he
would indeed comply with the Supreme Court ruling and that the October election would be
“free, fair, and impartial.”
Background. Military regimes have ruled Pakistan for half of its 54 years, interspersed
with periods of generally weak civilian governance. After 1988, Pakistan had democratically
elected governments, and the army appeared to have moved from its traditional role of power
wielder or kingmaker toward one of power broker or referee. During the past decade,
Benazir Bhutto and Nawaz Sharif each served twice as prime minister. Bhutto was elected
prime minister in October 1988, following the death of military ruler Mohammad Zia-ul Haq
in a plane crash. General Zia had led a coup in 1977 deposing Bhutto’s father, Prime Minister
Zulfiqar Ali Bhutto, who was later executed. Despite the restoration of democratic process
to Pakistan in 1988, the succeeding years were marred by political instability, economic
problems, and ethnic and sectarian violence. In August 1990, President Ishaq Khan dismissed
Bhutto for alleged corruption and inability to maintain law and order. The president’s power
to dismiss the prime minister derived from Eighth Amendment provisions of the Pakistan
constitution, which dated from the era of Zia’s presidency.
Elections held in October 1990 brought to power Nawaz Sharif, who also was ousted,
in 1993, under the Eighth Amendment provisions. The 1993 elections returned Bhutto and
the PPP to power. The new Bhutto government faced serious economic problems, including
CRS-5

IB94041
03-10-02
drought-induced power shortages and crop failures, as well as increasing ethnic and religious
turmoil, particularly in Sindh Province. According to some observers, the Bhutto
government’s performance also was hampered by the reemergence of Bhutto’s husband, Asif
Ali Zardari, in a decisionmaking role. Zardari’s role in the previous Bhutto government was
believed to have been a factor in her dismissal. He served two years in jail on corruption
charges, but subsequently was acquitted. In November 1996, President Farooq Leghari
dismissed the Bhutto government for “corruption, nepotism, and violation of rules in the
administration of the affairs of the Government” and scheduled new elections for February
1997. Zardari was placed under detention by the interim government, where he currently
remains.
Nawaz Sharif’s PML won a landslide victory in the February 1997 parliamentary
elections, which, despite low voter turnout, international observers judged to be generally free
and fair. Sharif moved quickly to consolidate his power by curtailing the powers of the
President and the judiciary. In April 1997, the Parliament passed the Thirteenth Amendment
to the constitution, which deleted the President’s former Eighth Amendment powers to
dismiss the government and to appoint armed forces chiefs and provincial governors. The
new amendment was passed unanimously by both houses of parliament and signed by
President Leghari. As the result of a power struggle in November, Sharif replaced the
Supreme Court Chief Justice, Leghari resigned , and Sharif chose Mohammad Rafiq Tarar
as president. As a result of these developments and the PML control of the Parliament,
Nawaz Sharif emerged as one of Pakistan’s strongest elected leaders since independence. His
critics accused him of further consolidating his power by intimidating the opposition and the
press. In April 1999, a two-judge Ehtesab (accountability) Bench of the Lahore High Court
convicted former Prime Minister Benazir Bhutto and her husband of corruption and sentenced
them to 5 years in prison, fined them $8.6 million, and disqualified them from holding public
office. Bhutto was out of the country at the time. In commenting on the conviction, the
Human Rights Commission of Pakistan noted: “...the selective manner in which ehtesab has
been conducted by the executive smacks of political vindictiveness.” In April 2001, the
Pakistan Supreme Court ruled that former Prime Minister Benazir Bhutto’s 1999 conviction
for corruption was biased and ordered a retrial.
Pakistan-U.S. Relations and Bilateral Issues
U.S. policy interests in Pakistan encompass a wide range of issues, including nuclear
weapons and missile proliferation; South Asian regional stability; democratization and human
rights; economic reform and market opening; and efforts to counter terrorism and narcotics.
These concerns have been affected by several developments in recent years, including: 1) the
cutoff of U.S. aid to Pakistan in 1990, 1998, and 1999 over nuclear and democracy issues;
2) India and Pakistan’s worsening relationship over Kashmir since 1990, and their continuing
nuclear standoff; 3) Pakistan’s see-saw attempts to develop a stable democratic government
and strong economy in the post-Cold War era; and, most recently, 4) the terrorist attacks of
September 11, 2001, on New York and Washington.
The Bush Administration has identified exiled Saudi dissident Osama bin Laden, who had
long been harbored by the Taliban government in Afghanistan, as the prime suspect in the
terrorist attacks on the United States. On September 13, President Musharraf – under strong
U.S. diplomatic pressure – offered President Bush “our unstinted cooperation in the fight
CRS-6

IB94041
03-10-02
against terrorism.” Because of its proximity to Afghanistan and former close ties with the
Taliban, Pakistan is considered key to U.S.-led efforts to root out terrorism in the region.
The Taliban and bin Laden enjoy strong support among a substantial percentage of the
Pakistan population, who share not only conservative Islamic views but also ethnic and
cultural ties with Afghanistan. A major issue facing the Administration is how to make use
of Pakistan’s support — including for military operations in Afghanistan — without seriously
destabilizing an already fragile state that has nuclear weapons and ballistic missiles.
In an effort to shore up the Musharraf government, most sanctions relating to Pakistan’s
(and India’s) 1998 nuclear tests and Pakistan’s 1999 military coup were waived in September
and October. On October 29, State Department spokesman Richard Boucher said that
Pakistan will receive well over one billion dollars in U.S. assistance and several billion dollars
from international organizations to help strengthen Pakistan as a key member of the U.S.-led
anti-terrorism coalition. Direct assistance programs will include aid for health, education,
food, democracy promotion, child labor elimination, counter-narcotics, border security and
law enforcement, as well as trade preference benefits. The United States also will support
grant, loan, and debt rescheduling programs for Pakistan by the various international financial
institutions, including the World Bank, International Monetary Fund, and Asian Development
Bank. In addition, Pakistan has received promises of substantial aid, debt relief, and trade
concessions from Japan and the European Union in recognition of its support for the
international anti-terrorism coalition. Japan, which is Pakistan’s largest bilateral aid donor,
announced on October 26 that it was suspending sanctions imposed on Pakistan and India
following their 1998 nuclear tests.
On November 10, President Bush met with President Musharraf in New York, where
both addressed the U.N. General Assembly. According to the White House, the two leaders
discussed the anti-terrorism campaign, regional security issues, economic cooperation, human
rights, the October 2002 Pakistani elections, and ways to strengthen the U.S.-Pakistan
relationship. President Bush hosted a dinner for President Musharraf that evening.
Security
Nuclear Weapons and Missile Proliferation. Since the September 2001 terrorist
attacks on the United States, U.S. and Pakistan officials have held talks on improving security
and installing new safeguards on Pakistan’s nuclear weapons and nuclear power plants. Fears
that Pakistan could become destabilized by the U.S. anti-terrorism war efforts in Afghanistan
have heightened U.S. nuclear proliferation concerns in South Asia. On May 11 and 13, 1998,
India conducted a total of five underground nuclear tests, breaking a 24-year self-imposed
moratorium on nuclear testing. Despite U.S. and world efforts to dissuade it, Pakistan
followed, claiming five tests on May 28, 1998, and an additional test on May 30. The
unannounced tests created a global storm of criticism, as well as a serious setback for two
decades of U.S. nuclear nonproliferation efforts in South Asia. (See also CRS Report 98-
570, India-Pakistan Nuclear Tests and U.S. Response and CRS Report RL30623, Nuclear
Weapons and Ballistic Missile Proliferation in India and Pakistan: Issues for Congress
.)
On May 13, 1998, President Clinton imposed economic and military sanctions on India,
mandated by section 102 of the Arms Export Control Act (AECA), and applied the same
sanctions to Pakistan on May 30. Humanitarian assistance, food, or other agricultural
commodities are excepted from sanctions under the law. In November1998, the U.S.
CRS-7

IB94041
03-10-02
Department of Commerce published a list of more than 300 Indian and Pakistani government
agencies and companies suspected of working on nuclear, missile, and other weapons
programs. Any U.S. exports to these entities required a Commerce Department license, and
most license requests reportedly were denied. On the one hand, Pakistan was less affected
than India by the sanctions, since most U.S. assistance to Pakistan had been cut off since
1990. On the other hand, Pakistan’s much smaller – and currently weaker – economy was
more vulnerable to the effects of the sanctions.
U.S. policy analysts consider the continuing arms race between India and Pakistan as
posing perhaps the most likely prospect for the future use of nuclear weapons. India
conducted its first, and only, previous nuclear test in May 1974, following which it maintained
ambiguity about the status of its nuclear program. Pakistan probably gained a nuclear
weapons capability sometime in the 1980s. India is believed to have enough plutonium for
75 or more nuclear weapons. Pakistan may have enough enriched uranium for 25 nuclear
weapons. Both countries have aircraft capable of delivering weapons. India has short-range
missiles (Prithvi) and is developing an intermediate-range ballistic missile (Agni) with enough
payload to carry a nuclear warhead. Pakistan reportedly has acquired technology for short-
range missiles (Shaheen) from China and medium-range missiles (Ghauri) from North Korea,
capable of carrying small nuclear warheads.
Proliferation in South Asia is part of a chain of rivalries — India seeking to achieve
deterrence against China, and Pakistan seeking to gain an “equalizer” against a larger and
conventionally stronger India. India began its nuclear program in the mid-1960s, after its
1962 defeat in a short border war with China and China’s first nuclear test in 1964. Despite
a 1993 Sino-Indian troop reduction agreement and some easing of tensions, both nations
continue to deploy forces along their border. Pakistan’s nuclear program was prompted by
India’s 1974 nuclear test and by Pakistan’s defeat by India in the 1971 war and consequent
loss of East Pakistan, now independent Bangladesh.
U.S. Nonproliferation Efforts. Neither India nor Pakistan are signatories of the
Nuclear Nonproliferation Treaty (NPT) or the Comprehensive Test Ban Treaty (CTBT).
India has consistently rejected both treaties as discriminatory, calling instead for a global
nuclear disarmament regime. Pakistan traditionally has maintained that it will sign the NPT
and CTBT only when India does so. Aside from security concerns, the governments of both
countries are faced with the prestige factor attached to their nuclear programs and the
domestic unpopularity of giving them up. Following the 1998 tests, the United States set
forth five steps India and Pakistan need to take in order to avoid a destabilizing nuclear and
missile competition. They include the following:
Halt further nuclear testing and sign and ratify the CTBT. U.S. and
international pressure after the 1998 nuclear tests produced resolutions by the U.N. Security
Council and the Group of Eight (G-8) urging India and Pakistan to sign the CTBT. Japan –
the largest bilateral aid donor for both countries – made resumption of its aid programs
contingent on signing the CTBT and assurances not to transfer nuclear technology or material
to any other country. In October 2001, however, Japan suspended sanctions against both
countries in recognition of their support for the U.S.-led war on terrorism. Although both
India and Pakistan currently observe self-imposed moratoria on nuclear testing, they continue
to resist signing the CTBT – a position made more tenable by U.S. failure to ratify the treaty
in 1999.
CRS-8

IB94041
03-10-02
Halt fissile material production; cooperate in FMCT negotiations. Both
India and Pakistan have agreed to participate in negotiations on the fissile material control
Treaty. Both countries, however, have expressed unwillingness to halt fissile material
production at this stage in the development of their nuclear weapons programs.
Refrain from deploying or testing missiles or nuclear weapons. The United
States has urged India and Pakistan – with little success – to adopt constraints on
development, flight testing, and storage of missiles, and basing of nuclear-capable aircraft.
On April 11, 1999, India tested its intermediate-range Agni II missile, firing it a reported
distance of 1,250 miles. On April 14-15, Pakistan countered by firing its Ghauri II and
Shaheen missiles with reported ranges of 1,250 and 375 miles, respectively. Most recently,
India tested a longer version of its short-range Prithvi missile in December 2001.
In August 1999, India’s Bharatiya Janata Party (BJP) government released a draft report
by the National Security Advisory Board (NSAB) on India’s nuclear doctrine. The report,
although retaining India’s no-first-use policy, called for creation of a “credible nuclear
deterrence and adequate retaliatory capability should deterrence fail.” It proposed nuclear
weapons “based on a triad of aircraft, mobile land-based missiles and sea-based assets....”
The United States and other countries criticized the document as destabilizing, noting that,
if adopted, the proposed policy would ratchet up nuclear arms racing in the region.
Maintain and formalize restraints on sharing sensitive goods and
technologies with other countries. Both India and Pakistan apparently have good
records on nonproliferation of sensitive technologies and have issued regulatory orders on
export controls. Since May 1998, both countries have continued to hold expert-level talks
with U.S. officials on export controls. U.S. concern was raised in late 2001 by disclosures
that two retired Pakistani nuclear scientists had briefed bin Laden and other al Qaeda officials
on several occasions. The war in Afghanistan also heightened fears of instability in Pakistan
that could lead to Islamabad’s nuclear assets being compromised in the event of a radical
Islamist military coup. This has resulted in renewed U.S. policy debate on transfers of nuclear
weapons safeguards technologies to Pakistan and/or India. India also continues to press for
ending of export controls on dual-use technologies that it needs for its civilian nuclear and
space programs, which has raised further U.S. policy debates on export controls and
technology transfer.
Reduce bilateral tensions, including Kashmir. Beginning in 1990 – with the
increasing friction between India and Pakistan over Kashmir – the United States strongly
encouraged both governments to institute confidence-building measures in order to reduce
tensions. Measures agreed to so far include: agreement on advance notice of military
movements; establishment of a military commander “hotline”; an exchange of lists of nuclear
installations and facilities; agreement not to attack each other’s nuclear facilities; a joint ban
on use and production of chemical weapons; and measures to prevent air space violations.
In February 1999, Prime Minister Vajpayee took an historic bus ride to Pakistan to hold talks
with then Prime Minister Nawaz Sharif. The two leaders signed the Lahore Declaration in
which they agreed to intensify efforts to resolve all issues, including Jammu and Kashmir and
to take a number of steps to reduce tensions between their countries.
The prospects for India-Pakistan detente suffered a severe setback in May-July 1999,
when the two countries teetered on the brink of their fourth war, once again in Kashmir. In
CRS-9

IB94041
03-10-02
the worst fighting since 1971, Indian soldiers sought to dislodge some 700 Pakistan-
supported infiltrators who were occupying fortified positions along mountain ridges
overlooking a supply route on the Indian side of the line of control (LOC) near Kargil.
Following a meeting on July 4, between then Pakistan Prime Minister Nawaz Sharif and
President Clinton in Washington, the infiltrators withdrew across the LOC. (See CRS Report
RS20277, Recent Developments in Kashmir and U.S. Concerns.)
Tensions between India and Pakistan remained extremely high in the wake of the Kargil
conflict, which cost more than 1,100 lives. Throughout 2000, cross-border firing and shelling
continued at high levels. India accused Pakistan of sending a flood of militants into Kashmir
and increasingly targeting isolated police posts and civilians. Pakistan also accused India of
human rights violations in Kashmir. According to Indian government sources, more than
5,000 militants, security forces, and civilians were killed in Jammu and Kashmir state in 1999-
2000. The United States strongly urged India and Pakistan to create the proper climate for
peace, respect the LOC, reject violence, and return to the Lahore peace process. In
November 2000, India announced a unilateral halt to its military operations in Kashmir during
the Muslim holy month of Ramadan. In December, the Pakistan government announced that
its forces deployed along the LOC in Kashmir would observe maximum restraint and that
some of its troops would be pulled back from the LOC. Indian army officials noted that
clashes between Indian and Pakistani forces along the LOC had virtually stopped since the
cease-fire began and that there had been a definite reduction of infiltration of militants from
Pakistan. In February, Prime Minister Vajpayee extended the cease-fire until the end of May
2001. Kashmir’s main militant groups, however, rejected the cease-fire as a fraud and
continued to carry out attacks on military personnel and government installations. As security
forces conducted counter-operations, deaths of Kashmiri civilians, militants, and Indian
security forces continued to rise.
In May 2001, the Indian government announced that it was ending its unilateral cease-
fire in Kashmir but that Prime Minister Vajpayee would invite President Musharraf to India
for talks. The July summit talks in Agra between Musharraf and Vajpayee failed to produce
a joint communique, reportedly as a result of pressure from hardliners on both sides. Major
stumbling blocks were India’s refusal to acknowledge the “centrality of Kashmir” to future
talks and Pakistan’s objection to references to “cross-border terrorism.” Since the Agra talks,
tensions have continued to rise. According to Indian government reports, more than 2,000
people have died since January 2001 as a result of the fighting in Jammu and Kashmir state,
including 618 civilians, 1,133 militants, and 228 security forces. According to Amnesty
International, more than 1,100 people have disappeared in Kashmir since the revolt began in
1990.
On October 16-17, U.S. Secretary of State Colin Powell visited Pakistan and India in
an effort, in part, to calm seriously escalating tensions over Kashmir. India responded to an
October 1 terrorist attack by the Pakistan-based Jaish-e-Muhammad, which killed 38 people
in Kashmir, by resuming heavy firing across the line of control that divides the disputed
territory. Cross-border firing between India and Pakistan had been largely suspended since
November 2000. Powell urged both countries to seek a peaceful resolution of the Kashmir
dispute. On October 29, the chief of the U.N. Military Observers Group in India and Pakistan
(UNMOGIP) accused both countries of playing “political games” on the issue of Kashmir.
In reportedly the first instance of a public statement by the UNMOGIP in 50 years, Maj. Gen.
Hermann K. Loidolt stated further: “My assessment is that the situation will become more
CRS-10

IB94041
03-10-02
tense in the time coming, not only along the LOC [Line of Control] but also in the whole of
Jammu and Kashmir state.”
An attack against the Indian parliament on December 13, thought to have been carried
out by Pakistan-based Islamic militants, left 14 dead and brought India and Pakistan to the
brink of war. India blamed the suicide attack on two militant groups that Indian leaders
believe were sponsored by Pakistan: Jaish-e-Muhammad and Lashkar-e-Taiba. These two
groups allegedly have been fighting from bases in Pakistan to end Indian rule in part of the
disputed Himalayan region of Kashmir. Following the attack, Indian Prime Minister Vajpayee
stated “We do not want war, but war is being thrust on us, and we will have to face it.”
Pakistani leaders, in return, accused India of ratcheting up tensions between the two countries
and said that Pakistan would make India pay “a heavy price for any misadventure.” In the
weeks following the attack on the Indian parliament, both India and Pakistan have, in a “tit-
for-tat” fashion, issued threats, conducted military maneuvers and repositioned missile
batteries along their border, and levied sanctions against each other. As of mid-March 2002,
Indo-Pakistani tensions remain high but may be stepping down from a crisis level. Observers
note, however, that troops on both sides of the border have not pulled back and that the
situation remains dangerous.
Congressional Action. Through a series of legislative measures, Congress has
incrementally lifted sanctions on Pakistan and India resulting from their 1998 nuclear tests.
In October 1999, Congress passed H.R. 2561, the Department of Defense Appropriations
Act, 2000, and it was signed by the President as P.L. 106-79 on October 29. Title IX of the
act gives the President authority to waive sanctions applied against Pakistan and India in
response to the nuclear tests. In a presidential determination on Pakistan and India issued on
October 27, 1999, the President waived economic sanctions on India. Pakistan, however,
remained under sanctions triggered under Section 508 of the annual foreign assistance
appropriations act as a result of the October 1999 coup. The Foreign Operations Export
Financing and Related Appropriations Agencies Act, 2001, provided an exception under
which Pakistan could be provided U.S. foreign assistance funding for basic education
programs (P.L. 106-429; Section 597). The U.S. Agency for International Development
request for FY2002 includes $7 million for programs to strengthen civil society and reform
public education in Pakistan.
After the terrorist attack on the United States on September 11, 2001, and in recognition
of Pakistan’s cooperation with the U.S.-led coalition being assembled, policymakers searched
for new means of providing assistance to Pakistan. President Bush’s issuance of a final
determination on September 22, 2001, removed remaining sanctions on Pakistan and India
resulting from their 1998 nuclear test, finding that denying export licences and assistance was
not in the national security interests of the United States. Also, on October 27, President
Bush signed into law S. 1465 (P.L. 107-57), which gives the President two-year waiver
authority to lift sanctions on foreign assistance imposed on Pakistan following the 1999
military coup if he determines that such a waiver would facilitate the transition to democratic
rule in Pakistan and is important to U.S. efforts to combat international terrorism. The law
not only gives the president authority to waive sanctions on democracy but to waive sanctions
imposed on Pakistan for its debt servicing arrearage to the United States under the terms of
the Foreign Operations Appropriations Act. At the end of 1999, Pakistan’s international debt
was $30.7 billion, of which $2.38 billion was owed to the United States. P.L. 107-57 allowed
for an agreement of Pakistan to reschedule $379 million of its debt to the United States
CRS-11

IB94041
03-10-02
thereby enabling it to cancel its arrearage. After President Musharraf’s visit to Washington
D.C. in February 2002, President Bush wrote a letter to Congress stating that he had ordered
$220 million in emergency funds that had been given to the Defense Department for
warfighting and to the State Department for security upgrades, be reallocated to Pakistan “for
costs incurred in aiding U.S. military forces in Operation Enduring Freedom.” The Bush
Administration is also preparing a special funding request to be submitted to Congress in 2002
for the purpose of aiding “frontline states” in the war against terrorism. This would include
as yet an undetermined amount for Pakistan. (For details, see CRS Report RS20995, India
and Pakistan: Current U.S. Economic Sanctions
, by Dianne E. Rennack.)
Pakistan-U.S. Military Cooperation. The close U.S.- Pakistan military ties of the
Cold War era – which had dwindled since the 1990 aid cutoff – are in the process of being
restored as a result of Pakistan’s role in the U.S. anti-terrorism operations in Afghanistan.
Pakistan also has been a leading country in supporting U.N. peacekeeping efforts with troops
and observers. Some 5,000 Pakistani troops were stationed in Saudi Arabia and the United
Arab Emirates as part of the U.S.-led Persian Gulf War efforts in 1990. Pakistani troops
played an important role in the U.S.-led humanitarian operations in Somalia from 1992 to
1994. In November 2001, there were 5,500 Pakistani troops and observers participating in
U.N. peacekeeping efforts in Sierra Leone, East Timor, Kosovo, Congo, and other countries.
Democratization and Human Rights
Democratization Efforts. The United States considers the October 1999 Pakistan
military coup to be a serious setback to the country’s efforts to return to the democratic
election process beginning in 1988. National elections, judged by domestic and international
observers to be generally free and fair, were held in 1988, 1990, 1993, and 1997. Pakistan
democracy between 1988 and 1999, however, was marred by wide-scale corruption, volatile
mass-based politics, and a continuing lack of symmetry between the development of the
military and civilian bureaucracies and political institutions. The politics of confrontation
between parties and leaders flourished at the expense of effective government; frequent
walkouts and boycotts of the national and provincial assemblies often led to paralysis and
instability. The major political parties lacked grassroots organization and failed to be
responsive to the electorate.
Human Rights Problems. The U.S. State Department, in its Pakistan Country
Report on Human Rights Practices for 2001 (issued March 4, 2002), noted that, although
Pakistan’s human rights record remained poor under the military government, there were
improvements in some areas, including freedom of the press. The government bureaucracy
continued to function but was “monitored” by the military. The judiciary continued to be
subject to the executive branch but in May 2000, General Musharraf promised to abide by a
Supreme Court ruling that national elections will be held no later than 90 days after October
12, 2002. The State Department report cited continuing problems of police abuse, religious
discrimination, and child labor. Security forces were cited for committing extrajudicial
killings and for using arbitrary arrest and detention, torturing and abusing prisoners and
detainees, and raping women. Political and religious groups also engaged in killings and
persecution of their rivals and ethnic and religious minorities. Politically motivated violence
and a deteriorating law and order situation reportedly continued to be a serious problem.
CRS-12

IB94041
03-10-02
In recent years, the Human Rights Commission of Pakistan and Amnesty International
have issued reports critical of abuses of the rights of women and minorities. According to the
reports, rape is a serious problem, particularly rape of minors and gang rape. The State
Department human rights report also noted a high rate of abuse of female prisoners –
including rape and torture – by male police officers. Women also suffer discrimination in
education, employment, and legal rights. Discrimination against women is widespread, and
traditional constraints – cultural, legal, and spousal – have kept women in a subordinate
position in society. The adult literacy rate for men in Pakistan is about 50% and for women
about 24%. Religious minorities – mainly Christians, Hindus, and Ahmadi Muslims –
reportedly are subjected to discriminatory laws and social intolerance. A 1974 amendment
to the Pakistan constitution declared Ahmadis to be a non-Muslim minority because they do
not accept Muhammad as the last prophet. The Zia government, in 1984, made it illegal for
an Ahmadi to call himself a Muslim or use Muslim terminology. Blasphemy laws, instituted
under the Zia regime and strengthened in 1991, carry a mandatory death penalty for
blaspheming the Prophet or his family. Blasphemy charges reportedly are usually brought as
a result of personal or religious vendettas.
Economic Issues
Economic Reforms and Market Opening. Pakistan’s current military government
inherited an economy in recession. A decade of political instability left a legacy of soaring
foreign debt, declining production and growth rates, failed economic reform policies, and
pervasive corruption. Foreign debt totals more than $32 billion; foreign reserves are less than
$1.5 billion (about 6 weeks of imports); gross domestic product (GDP) growth rate (usually
averaging 5-6%) reportedly has slipped to 3%; and both agricultural and industrial growth
have dropped since 1998.
Over the long term, analysts believe Pakistan’s resources and comparatively
well-developed entrepreneurial skills hold promise for more rapid economic growth and
development. This is particularly true for Pakistan’s textile industry, which accounts for 60%
of Pakistan’s exports. Analysts point to the pressing need to broaden the country’s tax base
in order to provide increased revenue for investment in improved infrastructure, health, and
education, all prerequisites for economic development. Less than 1% of Pakistanis currently
pay income taxes. Agricultural income has not been taxed in the past, largely because of the
domination of parliament and the provincial assemblies by wealthy landlords.
Successive Bhutto and Sharif governments made agreements with the International
Monetary Fund (IMF), promising austerity, deficit reduction, and improved tax collection
in return for loans and credits. The promised reforms, however, fell victim to political
instability and a host of other problems, including floods, drought, crop viruses, strikes, a
bloated and inefficient bureaucracy, widespread tax evasion, weak infrastructure, and a
swollen defense budget. The Musharraf government has had some success in putting
economic reforms back on track, including expanding collection of income and sales taxes,
trade liberalization, and improving transparency. In January 2001, the Paris Club of creditor
nations agreed to reschedule $1.7 billion in repayments on Pakistan’s foreign debt of $32
billion. On August 29, an International Monetary Fund team cleared release of the final
installment of a $596 million standby loan to Pakistan and confirmed “Pakistan’s solid
macroeconomic performance, including lower inflation, a strengthening of the balance of
payments, and reduction of fiscal imbalances.”
CRS-13

IB94041
03-10-02
Trade and Trade Issues. In 2000, U.S. exports to Pakistan totaled $453 million and
imports from Pakistan totaled $2.2 billion. The United States has been strongly supportive
of Pakistan’s economic reform efforts, begun under the first Nawaz Sharif government in
1991. According to the report for 2000 of the U.S. Trade Representative (USTR), however,
a number of trade barriers remain. Some items are either restricted or banned from
importation for reasons related to religion, national security, luxury consumption, or
protection of local industries. U.S. companies have complained repeatedly about violations
of their intellectual property rights in the areas of patents and copyrights. Pakistan’s patent
law currently protects only processes, not products, from infringement. A 1992 Pakistan
copyright law that provides coverage for such works as computer software and videos is
being enforced but has resulted in a backlog of cases in the court system. The International
Intellectual Property Alliance estimated trade losses of $137 million in 2000, as a result of
pirated films, sound recordings, computer programs, and books.
Narcotics
In recent years, the Pakistan-Afghanistan border region has supplied a reported
20%-40% of heroin consumed in the United States and 70% of that consumed in Europe.
The region is second only to Southeast Asia’s Golden Triangle as a source of the world’s
heroin. Opium grown in Afghanistan and Pakistan is processed into heroin in more than 100
illegal laboratories in the border region. Although much of the heroin is smuggled by land and
sea routes to Europe and the United States, a substantial portion is consumed by Pakistan’s
rapidly growing domestic market. The Pakistan government estimates the 4 million drug
addicts in the country include 1.5 million addicted to heroin. According to some experts,
Pakistan’s drug economy amounts to as much as $20 billion. Drug money reportedly is used
to buy influence throughout Pakistan’s economic and political systems.
Pakistan’s counter-narcotics efforts are hampered by a number of factors, including lack
of government commitment; scarcity of funds; poor infrastructure in drug-producing regions;
government wariness of provoking unrest in tribal areas; and corruption among police,
government officials, and local politicians. U.S. counter-narcotics aid to Pakistan,
administered by the State Department’s Bureau of International Narcotics and Law
Enforcement Affairs, totaled $3.5 million in FY2001, with $3.5 million requested for FY2002.
The major counter-narcotics efforts engaged in by the Pakistan government, some of which
receive U.S. or U.N. support, include: improved law enforcement; reduction of demand;
opium crop destruction and crop substitution; and outreach programs that include supplying
roads, irrigation, drinking water, and schools to remote tribal areas.
In March 2001, President Bush submitted to Congress his annual list of major illicit drug
producing and transiting countries eligible to receive U.S. foreign aid and other economic and
trade benefits. Pakistan was among the countries certified as having cooperated fully with the
United States in counter-narcotics efforts, or to have taken adequate steps on their own.
According to the report, Pakistan almost achieved its goal of eliminating opium production
by reducing the poppy crop to a record low of 500 hectares, down from 8,000 hectares in
1992. Pakistan, however, faces major challenges as a transit country, despite reduced
production of opium in Afghanistan. Cooperation with the United States on counter-
narcotics efforts was described as excellent, including arrests, extradition, and poppy
eradication.
CRS-14

IB94041
03-10-02
Terrorism
In testifying before the House International Relations Committee in July 2000, U.S.
Coordinator for Counterterrorism Michael A. Sheehan stated that “Pakistan has a mixed
record on terrorism.” Although it has cooperated with the United States and other countries
on the arrest and extradition of terrorists, “Pakistan has tolerated terrorists living and moving
freely within its territory.” He further noted that although Pakistan is itself a victim of
terrorism, it “bears some responsibility for the current growth of terrorism in South Asia.
That we are allies makes it all the more important that we cooperate to rid the area of
terrorism.” In early 2001, the U.S. Federal Bureau of Investigation began offering anti-
terrorism training courses for Pakistan police officers in the United States.
According to the U.S. State Department report on global terrorism for 2000, there was
continuing terrorist-related violence in Pakistan as a result of domestic conflicts between
sectarian and political groups. Much of the violence in Punjab province reportedly related to
rivalry between the extremist Sunni militant group Sipah-i-Sahaba Pakistan and their Shiite
counterpart, Sipah-i-Muhammad Pakistan. In Sindh province – and particularly in Karachi
– violence and terrorist incidents related to struggles between the government and the
Muttahida Quami Movement (MQM) political party, which represents Urdu-speaking
Muslims, and their descendants, who migrated from India at the time of Partition in 1947.
Domestic violence reportedly lessened significantly following the October military coup.
In February 1995, Pakistan and U.S. officials cooperated closely in apprehending in
Islamabad the suspected mastermind of the New York World Trade Center bombing, who
was quickly extradited to the United States. In a possibly related incident, two Americans on
their way to work at the U.S. consulate in Karachi were shot and killed in March 1995. On
November 12, 1997, four American employees of Union Texas Petroleum Co. and their
Pakistani driver were killed in a terrorist attack in Karachi. Some observers have speculated
that the killings may be linked to the November 10 conviction of Pakistani Mir Aimal Kansi
(or Kasi) for the murder of two CIA employees in 1993.
According to the global terrorism report for 2000, Pakistan’s military government
continued to support the Kashmir insurgency, including allowing Kashmiri militant groups
to raise funds and recruit new cadre in Pakistan. Several of these groups reportedly were
responsible for attacks on civilians in India’s Jammu and Kashmir state. There have been
allegations that four Western tourists, including American Donald Hutchings, kidnaped in
1995, may have been killed by militants associated with a Pakistan-based group, Harakat
ul-Mujahidin (HUM). Since October 1997, the HUM has been on the U.S. State
Department’s list of foreign terrorist organizations. Many of the charges against Pakistan
appear to stem from the presence of several thousand Islamic fundamentalists from various
countries who went to Pakistan to participate in the Afghanistan war and who remained in
the Peshawar area. Many religious schools suspected to be fronts for terrorist training
activities reportedly receive funding from Iran and Saudi Arabia. The 2000 report also noted
U.S. concern for Pakistan’s continued support for the Taliban’s military operations in
Afghanistan. According to credible reports, Pakistan supplied the Taliban with materiel, food,
funding, and technical assistance, as well as allowing large numbers of Pakistani nationals to
cross into Afghanistan to fight for the Taliban.
CRS-15

IB94041
03-10-02
After joining the U.S.-led coalition against terrorism, and faced with a new confrontation
over Kashmir, Pakistan has been trying to crack down on militants operating within its
borders. The involvement of Pakistan in combating terrorism on its own soil has been
applauded by the United States. In December 2001, Secretary of State Colin Powell added
the Lashkar-e-Taiba and the Jaish-e-Muhammad to the U.S. foreign terrorist list, saying that
the Pakistan-based Kashmiri militant groups have conducted numerous terrorist acts in India
and Pakistan.
CRS-16