United States economic assistance to Pakistan

The United States began providing economic assistance along and military aid to Pakistan shortly after the country’s creation in 1947. In total, the United States obligated nearly $67 billion (in constant 2011 dollars) to Pakistan between 1951 and 2011. The levels year to year have waxed and waned for decades as US geopolitical interests in the region have shifted. Peaks in aid have followed years of neglect. In several periods, including as recently as the 1990s, US halted aid entirely and shut the doors of the USAID offices. This pattern has rendered the United States a far cry from a reliable and unwavering partner to Pakistan over the years.

In 2009, in an attempt to signal the United States’ renewed commitment to Pakistan, the US Congress approved the Enhanced Partnership for Pakistan Act (commonly known as the Kerry-Lugar-Berman bill, or KLB). KLB’s intention was to put security and development on two separate tracks, insulating the development agenda from unpredictable geopolitical and military events and facilitating longer-term planning for development. The act authorized a tripling of US economic and development-related assistance to Pakistan, or $7.5 billion over five years (FY2010 to FY2014), to improve Pakistan’s governance, support its economic growth, and invest in its people.