Economic Incentives of United States Are Worth to Make Allies with Pakistan
Economic incentives of United States are worth to make allies with Pakistan
By: Sadia Shamim
May 2011
The recent line of events has stained the US-Pakistan relationships, putting both countries’ position in a shadow. In such a controversial period of time, with diverse views around the globe, my assertions portray the alliance of United States to be significant for Pakistan throughout history. US haven’t used Pakistan as a client but have proved to be economically beneficial for the country. To prove my claim, this paper provides information on US aid, economic assistance to Pakistan, including the use of economic foreign policy and direct budget support to enhance Pakistan’s macroeconomic stability. Lastly, it discusses the positive role of the US in IMF, disbursing loans to Pakistan.
Starting with a glance on the historical relationship, the amount of aid provided by the US to Pakistan has been tremendous. The aid provided in 2001 was nearly $ 5 million. This aid boosted on to 1.1 billion in 2002. (US News and World Report, 6/2/2003). In 2003, the US rewarded Pakistan for their performance in the war against terror. Ahmad Rashid talks about the colossal amount of aid granted by the US in his book, ‘Descent into Chaos: The United States and the Failure of Nation Building in Pakistan, Afghanistan, and Central Asia’, stating, “Bush announces the US will now cancel $1 billion of Pakistan’s US debt, reschedule the remaining $1.8 billion, and give $100 million for education reform.”(Rashid, 2008, PP.148-149) Furthermore, in 2008, the U.S. Ambassador to Pakistan Anne W. Patterson showed an inclination towards assisting Pakistan’s democratic government in the areas of development, stability, and security. Non-military assistance to Pakistan has increased considerably to Pakistan under the Obama Administration, which is mainly attributable to the Kerry-Lugar-Berman bill which grants $7.5 billion to Pakistan in five years beginning 2009.Post 9 /11, Pakistan has
By: Sadia Shamim
May 2011
The recent line of events has stained the US-Pakistan relationships, putting both countries’ position in a shadow. In such a controversial period of time, with diverse views around the globe, my assertions portray the alliance of United States to be significant for Pakistan throughout history. US haven’t used Pakistan as a client but have proved to be economically beneficial for the country. To prove my claim, this paper provides information on US aid, economic assistance to Pakistan, including the use of economic foreign policy and direct budget support to enhance Pakistan’s macroeconomic stability. Lastly, it discusses the positive role of the US in IMF, disbursing loans to Pakistan.
Starting with a glance on the historical relationship, the amount of aid provided by the US to Pakistan has been tremendous. The aid provided in 2001 was nearly $ 5 million. This aid boosted on to 1.1 billion in 2002. (US News and World Report, 6/2/2003). In 2003, the US rewarded Pakistan for their performance in the war against terror. Ahmad Rashid talks about the colossal amount of aid granted by the US in his book, ‘Descent into Chaos: The United States and the Failure of Nation Building in Pakistan, Afghanistan, and Central Asia’, stating, “Bush announces the US will now cancel $1 billion of Pakistan’s US debt, reschedule the remaining $1.8 billion, and give $100 million for education reform.”(Rashid, 2008, PP.148-149) Furthermore, in 2008, the U.S. Ambassador to Pakistan Anne W. Patterson showed an inclination towards assisting Pakistan’s democratic government in the areas of development, stability, and security. Non-military assistance to Pakistan has increased considerably to Pakistan under the Obama Administration, which is mainly attributable to the Kerry-Lugar-Berman bill which grants $7.5 billion to Pakistan in five years beginning 2009.Post 9 /11, Pakistan has
References: 1. Rashid, A., (2008). Descent into Chaos: The United States and the Failure of Nation Building in Pakistan, Afghanistan, and Central Asia. 7. U.S. Department of State daily press briefing with Richard Boucher on October 29, 2001. http:/www.state.gov/r/pa/prs/dpb/2001.html 8