On 20 October 1947, two months and six days after independence from Great Britain, the United States established relations with Pakistan, making it amongst the first nations to establish relations with the new state. Pakistan allied itself with the U.S. during the Cold war era against the USSR, and was an integral in the anti-Soviet CENTO and SEATO organizations.
Pakistan also played a crucial role in arranging the 1972 Nixon visit to China which led to normalization of ties between the two countries. Despite a worsening of relations following the election of the left-oriented Pakistan Peoples Party under Zulfiqar Ali Bhutto, relations quickly improved and deepened during Operation Cyclone in the 1980s, which was directed against Soviet expansion in Central Asia and South Asia by funding and training Muslim fundamentalists to combat the Soviet Union.
Relations once again soured after the Collapse of Soviet Union, when the United States approved sanctions against Pakistan by passing the Pressler amendment, which was enacted against Pakistan for its nuclear weapons program, which was initiated after India detonated a nuclear device in 1974.
Pakistan once again assumed an important role in American geopolitical interests in the region following the attacks of September 11th, 2001, and the subsequent War on Terror. Relations were strengthened as the United States named Pakistan as a Major non-NATO ally in 2002 - which allowed for the release of over twenty billion dollars of aid to Pakistan. American recovery efforts following the 2005 Kashmir earthquake were widely appreciated by the Pakistani public.
Relations began to strain as both sides began to criticize one another's strategy in the War on Terror, with the United States government frequently accusing Pakistan of harboring members of the Afghan Taliban and Quetta Shura, while Pakistan has alleged that the United States has done little to control security in Kunar Province of Afghanistan, where Pakistan's most-wanted terrorist, Mullah Fazlullah is believed to be hiding. Furthermore, as a result of the Lahore incident and the black operation in the country which killed the al-Qaeda leader Osama bin Laden, followed by the Salala incident, relations between the two countries have become increasingly strained in recent years, with high levels of anti-Americanism. Pakistan frequently ranks America one of its least favored countries, and vice versa. In 2015, according to Gallup's annual World Affairs survey, only 15% of Americans have a favorable view of Pakistan.
The United States today provides extensive economic, scientific, and military assistance to Pakistan, while Pakistan continues to occupy a strategic position in the United States' interests in Central and South Asia. The United States is the second-largest supplier of military equipment to Pakistan after China, and is Pakistan's most generous donor of foreign aid.
Bilateral Economic Relations
The United States is Pakistan’s largest bilateral trading partner. In FY 2015 (July 2014 - June 2015), Pakistan's exports to all countries were estimated at $24.59 billion and its imports at $41.43 billion. During this same fiscal period, $18.72 billion was remitted back to Pakistan by overseas workers, 14.4% from the U.S. It is estimated that at least 500,000 members of the Pakistani diaspora reside in the United States.
In FY 2015, the United States accounted for approximately 16% of Pakistan’s exports, the second largest market behind the European Union, and $1.20 billion of its imports. Bilateral trade between the United States and Pakistan exceeded $5.1 billion in FY 2015. The United States is also one of the top sources of foreign direct investment to Pakistan, with $209 million in FY 2015.
In May 2014, following Prime Minister Sharif’s visit to Washington, the U.S. and Pakistan established a Joint Action Plan to expand bilateral trade and investment over five years. In March 2015 the United States and Pakistan organized the third U.S.-Pakistan business opportunities conference, headlined by Secretary of Commerce Penny Priztker and Finance Minister Ishaq Dar in Islamabad. Major U.S. investments are concentrated in fast-moving consumer goods, construction, chemicals, energy, transportation, and communications.
U.S. Civilian Assistance to Pakistan
The U.S. Congress passed the Enhanced Partnership with Pakistan Act (often referred to as “Kerry-Lugar-Berman,” or “KLB,” after its co-sponsors) in October 2009 in order to demonstrate the U.S. long-term commitment to cooperation with the Pakistani people and their civilian institutions. Since the passage of KLB, the U.S. government has committed over $5 billion in civilian assistance to Pakistan, and also over $1 billion in emergency humanitarian assistance for disasters like the 2010 floods.
U.S. Security Assistance to Pakistan
U.S. security assistance to Pakistan is focused on strengthening the counterterrorism (CT) and counterinsurgency (COIN) capabilities of the Pakistan security forces, and promoting closer security ties and interoperability with the United States. U.S. security assistance has directly supported Pakistan’s CT operations in the FATA. Foreign Military Financing (FMF) ($265 million in FY 2015) promotes the development of Pakistan’s long-term COIN/CT capabilities, particularly in FATA, and improves Pakistan’s ability to participate in maritime security operations and counter-maritime piracy. International Military Education and Training (IMET) assistance to Pakistan ($5 million in FY 2015) enhances the professionalism of Pakistan’s military and strengthens long-term military relationships between Pakistan and the United States.