SSH Assignment

Submitted by: Talha Ayyan 2022-ag-8044 & 2022-ag-8046

Muhammad Hammad 2022-ag-8045
 Pak-USA Relationship

1. Historical Context:
The relationship between Pakistan and the USA dates back to Pakistan's creation in 1947. The US
has often viewed Pakistan as a strategic ally in South Asia, particularly during the Cold War era, as
Pakistan aligned itself with the United States against the Soviet Union.

The state visit of Liaquat Ali Khan to the United States from 3 May to 5 May 1950, was an official
state visit paid by the first Prime Minister of Pakistan, Liaquat Ali Khan, accompanied by the First
Lady of Pakistan, Ra'ana Liaquat Ali Khan.

Ayub Khan was elected president for the next five years and decided to pay his first state visit to the
United States with his wife and also daughter Begum Naseem Aurangzeb in July 1961.

2. Military and Economic Aid:

The US has provided significant military and economic aid to Pakistan over the years. Pakistan has
been a major non-NATO ally of the United States, which allowed for increased military assistance,
intelligence cooperation, and arms sales.
In September of 1954, the United States, France, Great Britain, New Zealand, Australia, the
Philippines, Thailand and Pakistan formed the Southeast Asia Treaty Organization, or SEATO.
SEATO Meeting in Manila
The purpose of the organization was to prevent communism from gaining ground in the region.
Although called the “Southeast Asia Treaty Organization,” only two Southeast Asian countries
became members. The Philippi
 joined in part because of
its close ties with the United States and in part out of concern over the nascent communist
insurgency threatening its own government

The Central Treaty Organization (CENTO), formerly known as the Middle East Treaty Organization
(METO) and also known as the Baghdad Pact, was a military alliance of the Cold War. It was formed
on 24th February, 1955 by Iran, Iraq, Pakistan, Turkey, and the United Kingdom. The alliance was
dissolved on 16 March 1979.
3. Counterterrorism Cooperation:
Post-9/11, Pakistan became a key ally in the US-led war on terror. Pakistan's support was crucial for
the US military operations in neighboring Afghanistan, where Pakistan played a role in facilitating
logistics and providing intelligence.

Shamsi was used heavily for launching the war in Afghanistan in late 2001,
and later served as the base for the US drone programme. Set in sparsely
populated desert in the western Baluchistan province, Shamsi is highly
controversial within Pakistan for its association with drones, which Islamabad
officially condemns.

The 9/11 terrorist attacks in the US sent shock waves around the world from
which Pakistan has still not recovered. Indeed, Pakistan’s participation in the
“global war on terror” thrust the country to the forefront of the international
community’s attention at a moment when it was utterly unprepared to reconcile
the world’s concerns with its own.

4. Tensions and Strained Relations:

The relationship has experienced strains and challenges, particularly concerning issues like:
- Differences over how to handle militant groups in the region, especially those operating along the
Afghanistan-Pakistan border.

- Concerns about Pakistan's nuclear program and proliferation activities in the past.
- Human rights concerns within Pakistan.

- Differences in approaches towards Afghanistan, particularly in relation to the Taliban.

5. Trade and Economic Relations:

The economic relationship between Pakistan and the USA includes trade, investment, and
economic assistance. Trade relations have been significant, and both countries have sought to
enhance economic ties.
According to the US Census Bureau, Pakistani yearly trade with the US has been as follows:

| Year | Pakistani exports to US (USD million) | Pakistani imports from US (USD million) | Total trade
(USD million) |
| 2022 | 5.51 billion | 6.0 billion | 11.51 billion |
| 2021 | 5.51 billion | 3.51 billion | 9.02 billion |
| 2020 | 5.36 billion | 3.14 billion | 8.5 billion |
| 2019 | 5.07 billion | 2.84 billion | 7.91 billion |
| 2018 | 4.86 billion | 2.63 billion | 7.49 billion |

As you can see, Pakistani exports to the US have grown steadily in recent years, while Pakistani
imports from the US have also increased, albeit at a slower pace. This has led to a growing trade
deficit for Pakistan.

The main products that Pakistan exports to the US include textiles, apparel, fruits, vegetables, and
leather goods. The main products that Pakistan imports from the US include machinery, chemicals,
pharmaceuticals, and agricultural products.
The US is Pakistan's largest export market and its third-largest source of imports. The trade
relationship between the two countries is important for both economies. The US provides Pakistan
with a market for its exports and helps to support Pakistani jobs. Pakistan provides the US with
access to a growing market and a source of low-cost labor.

The US and Pakistan are working to expand their trade relationship. In 2023, the US launched an
initiative to enhance bilateral trade. The initiative includes measures to promote trade and
investment, and to reduce trade barriers.

The future of Pakistani trade with the US is uncertain. However, both countries have expressed a
desire to expand their trade relationship. If the two countries are able to overcome their differences
and implement the measures outlined in the US initiative, trade between the two countries could
grow significantly in the years to come.

6. Diplomatic Engagement:
High-level visits and diplomatic engagements between the two countries have aimed to improve
relations and address concerns, especially in areas of mutual interest and security.
Here is the detail of official visit last 20 years:
Visits of Pakistani Prime Ministers to the US in the last 20 years:

Shaukat Aziz (2004): Aziz visited the US in June 2004 for the 40th anniversary of the US-Pakistan
relationship. He met with President George W. Bush and other senior US officials to discuss a range
of issues, including the war on terror and economic cooperation.

Yousaf Raza Gillani (2009): Gillani visited the US in September 2009 for the UN General
Assembly. He met with President Barack Obama and other senior US officials to discuss the war in
Afghanistan and regional security.

Nawaz Sharif (2010): Sharif visited the US in October 2010 for the UN General Assembly. He met
with President Obama and other senior US officials to discuss the war in Afghanistan, economic
cooperation, and the Kashmir conflict.

IMRAN KHAN (2019): Khan visited the US in July 2019. He met with President Donald Trump and
other senior US officials to discuss a range of issues, including the war in Afghanistan, regional
security, and economic cooperation. Khan also addressed a joint session of the US Congress.
Visits of Pakistani Presidents to the US in the last 20 years:

Pervez Musharraf (2000): Musharraf visited the US in May 2000 for the White House Conference
on Terrorism. He met with President Bill Clinton and other senior US officials to discuss the war on
terror and Pakistan's role in the region.

Asif Ali Zardari (2009): Zardari visited the US in September 2009 for the UN General Assembly. He
met with President Obama and other senior US officials to discuss the war in Afghanistan and
regional security.

Arif Alvi (2022): Alvi visited the US in April 2022 for the White House Conference on Climate
Change. He met with President Joe Biden and other senior US officials to discuss Pakistan's climate
change goals and its need for international assistance.
Detail Of IMF Loan :

Pakistan has borrowed from the IMF 22 times since 1947, totaling over 60 billion. The following table
show summary of Pakistan

IMF loans from 1947 to 2023:

Year \ Loan type \ Amount (SDR million) \ Amount (US million)

1958 Stand-By Arrangement 32.7 46.3
1961 Extended Fund Facility 84.3 121.7
1965 Stand-By Arrangement 100.0 145.5
1972 Stand-By Arrangement 140.0 208.2
1976 Extended Fund Facility 350.0 518.0
1980 Extended Fund Facility 500.0 747.0
1982 Extended Fund Facility 600.0 913.0
1988 Enhanced Structural Adjustment Facility 250.0 373.5
1990 Enhanced Structural Adjustment Facility 300.0 455.0
1991 Enhanced Structural Adjustment Facility 350.0 526.5
1993 Enhanced Structural Adjustment Facility 400.0 608.0
1997 Poverty Reduction and Growth Facility 500.0 747.0
1999 Poverty Reduction and Growth Facility 1,000.0 1,500.0
2001 Poverty Reduction and Growth Facility 1,100.0 1,663.0
2003 Poverty Reduction and Growth Facility 1,200.0 1,826.0
2005 Poverty Reduction and Growth Facility 1,300.0 1,990.0
2008 Stand-By Arrangement 6,100.0 9,215.0
2013 Extended Fund Facility 5,900.0 8,915.0
2016 Extended Fund Facility 6,600.0 10,080.0
2023 Stand-By Arrangement 2,250.0 3,045.0
Pakistan has repaid a significant portion of its IMF loans over the years. However, Pakistan remains
one of the largest borrowers from the IMF. The IMF loans have helped Pakistan to stabilize its
economy and to implement economic reforms. However, Pakistan has also struggled to repay its IMF
loans on time.

The IMF has been critical of Pakistan's economic management in recent years. The IMF has warned
that Pakistan needs to implement more comprehensive economic reforms in order to achieve
sustainable growth and prosperity. The IMF has also warned that Pakistan could face another IMF
bailout if it does not implement these reforms.

The future of Pakistan's relationship with the IMF is uncertain. However, it is clear that Pakistan will
continue to rely on IMF loans in the coming years. The IMF loans can provide Pakistan with the
financial resources it needs to implement economic reforms and to stabilize its economy. However,
Pakistan will need to be careful to avoid becoming too dependent on IMF loans.