Changes

==Government and Political Conditions==

==Government and Political Conditions==

[[File:Aiwane Sadr Presidency official residence of the President of Pakistan.jpeg|thumb|300px|Residence of the President of Pakistan.]]

[[File:Aiwane Sadr Presidency official residence of the President of Pakistan.jpeg|thumb|300px|Residence of the President of Pakistan.]]

Pervez Musharraf ran Pakistan from 1999, when as army chief he ousted Prime Minister Nawaz Sharif. After losing the support of the army, and in the face of impeachment threats, Musharraf resigned in August 2008.  He was replaced by President Asif Ali Zardari (b. 1955) of the PPP party.<ref>A playboy, in 1987 he married [[Benazir Bhutto]] (1953-2007), leader of the PPP party. She was the daughter of Zulfikar Ali Bhutto, who was the daughter of former president (1971–73) and prime minister (1973–77). She served two terms as prime minister, in 1988–90 and in 1993–96. They had three children. Zadari spent three years in prison and is called “Mr. Ten Percent" because of his fondness for cash kickbacks on government contracts.</ref> However Zardari was so weak in late 2009 that his government seems near collapse. In November 2009 Zardari relinquished his position in Pakistan’s nuclear command structure, turning it over to the prime minister, in what appeared to be an effort to avoid impeachment or prosecution, and retain at least a figurehead post. Zardari is head of the Pakistan Muslim League-Nawaz Party (PML-N), taking over after the assassination in 2007 of his wife, former Prime Minister Benazar Bhutto.

Pervez Musharraf ran Pakistan from 1999, when as army chief he ousted Prime Minister Nawaz Sharif. After losing the support of the army, and in the face of impeachment threats, Musharraf resigned in August 2008.  He was replaced by President Asif Ali Zardari (b. 1955) of the PPP party.<ref>A playboy, in 1987 he married [[Benazir Bhutto]] (1953-2007), leader of the PPP party. She was the daughter of Zulfikar Ali Bhutto, who was the daughter of former president (1971–73) and prime minister (1973–77). She served two terms as prime minister, in 1988–90 and in 1993–96. They had three children. Zadari spent three years in prison and is called “Mr. Ten Percent" because of his fondness for cash kickbacks on government contracts.</ref> However Zardari was so weak in late 2009 that his government seems near collapse. In November 2009 Zardari relinquished his position in Pakistan's nuclear command structure, turning it over to the prime minister, in what appeared to be an effort to avoid impeachment or prosecution, and retain at least a figurehead post. Zardari is head of the Pakistan Muslim League-Nawaz Party (PML-N), taking over after the assassination in 2007 of his wife, former Prime Minister Benazar Bhutto.

Both Musharraf and Zardari are friendly to the United States, and hostile to the Taliban, which has strong support in remote mountainous districts. Indeed, the growing strength of the Taliban is one of the major reasons for the strength of the insurgency it sponsors in neighboring Afghanistan, Inside Pakistan terrorism has grown more severe, with suicide bombers targeting police, government offices and public places.

Both Musharraf and Zardari are friendly to the United States, and hostile to the Taliban, which has strong support in remote mountainous districts. Indeed, the growing strength of the Taliban is one of the major reasons for the strength of the insurgency it sponsors in neighboring Afghanistan, Inside Pakistan terrorism has grown more severe, with suicide bombers targeting police, government offices and public places.

<!--outdated *Ambassador to the UN--Munir Akram-->

<!--outdated *Ambassador to the UN--Munir Akram-->

[[File:Lt -Gen -Ahmad-Shuja-Pasha Pakistan.jpg|thumb|left|Lt. Gen. Ahmad Shuja Pasha, the director general of the country’s spy agency.]]

[[File:Lt -Gen -Ahmad-Shuja-Pasha Pakistan.jpg|thumb|left|Lt. Gen. Ahmad Shuja Pasha, the director general of the country's spy agency.]]

===Foreign Relations===

===Foreign Relations===

====Better relations since 2004====

====Better relations since 2004====

The prospects for better relations between India and Pakistan improved in early January 2004 when a summit meeting of the South Asian Association for Regional Cooperation (SAARC) permitted India’s Prime Minister Vajpayee to meet with President Musharraf. Both leaders agreed to establish a Composite Dialogue to resolve their disputes. The Composite Dialogue focuses on eight issues: confidence building measures, Kashmir, Wullar barrage, promotion of friendly exchanges, Siachen glacier, Sir creek, terrorism and drug trafficking, and economic and commercial cooperation.   

The prospects for better relations between India and Pakistan improved in early January 2004 when a summit meeting of the South Asian Association for Regional Cooperation (SAARC) permitted India's Prime Minister Vajpayee to meet with President Musharraf. Both leaders agreed to establish a Composite Dialogue to resolve their disputes. The Composite Dialogue focuses on eight issues: confidence building measures, Kashmir, Wullar barrage, promotion of friendly exchanges, Siachen glacier, Sir creek, terrorism and drug trafficking, and economic and commercial cooperation.   

Relations further improved when President Musharraf met Indian Prime Minister Manmohan Singh in New York in October 2004. Additional steps aimed at improving relations were announced when Indian Foreign Minister Natwar Singh visited Islamabad in February 2005 and in April 2005 when President Musharraf traveled to India to view a cricket match and hold discussions. In a further display of improved relations, bus service commenced from Pakistan-controlled Kashmir to Srinagar in April 2005. After a destructive earthquake hit the Kashmir region in October 2005, the two countries cooperated with each other to deal with the humanitarian crisis.  

Relations further improved when President Musharraf met Indian Prime Minister Manmohan Singh in New York in October 2004. Additional steps aimed at improving relations were announced when Indian Foreign Minister Natwar Singh visited Islamabad in February 2005 and in April 2005 when President Musharraf traveled to India to view a cricket match and hold discussions. In a further display of improved relations, bus service commenced from Pakistan-controlled Kashmir to Srinagar in April 2005. After a destructive earthquake hit the Kashmir region in October 2005, the two countries cooperated with each other to deal with the humanitarian crisis.  

Recognizing national security concerns and accepting Pakistan's assurances that it did not intend to construct a nuclear weapon, Congress waived restrictions (Symington Amendment) on military assistance to Pakistan. In March 1986, the two countries agreed on a second multi-year (FY 1988-93) $4 billion economic development and security assistance program. On October 1, 1990, however, the United States suspended all military assistance and new economic aid to Pakistan under the Pressler Amendment, which required that the President certify annually that Pakistan "does not possess a nuclear explosive device."  

Recognizing national security concerns and accepting Pakistan's assurances that it did not intend to construct a nuclear weapon, Congress waived restrictions (Symington Amendment) on military assistance to Pakistan. In March 1986, the two countries agreed on a second multi-year (FY 1988-93) $4 billion economic development and security assistance program. On October 1, 1990, however, the United States suspended all military assistance and new economic aid to Pakistan under the Pressler Amendment, which required that the President certify annually that Pakistan "does not possess a nuclear explosive device."  

[[File:Pakistani soldier.jpg|thumb|180px|Pakistani soldier.]]

[[File:Pakistani soldier.jpg|thumb|180px|Pakistani soldier.]]

Several incidents of violence against American officials and U.S. mission employees in Pakistan have marred the relationship. In November 1979, false rumors that the United States had participated in the seizure of the Grand Mosque in Mecca provoked a mob attack on the U.S. Embassy in Islamabad in which the chancery was set on fire resulting in the loss of life of American and Pakistani staff. In 1989, an attack on the American Center in Islamabad resulted in six Pakistanis being killed in crossfire with the police. In March 1995, two American employees of the consulate in Karachi were killed and one wounded in an attack on the home-to-office shuttle. In November 1997, four U.S. businessmen were brutally murdered while being driven to work in Karachi. In March 2002 a suicide attacker detonated explosives in a church in Islamabad, killing two Americans associated with the Embassy and three others. There were also unsuccessful attacks by terrorists on the Consulate General in Karachi in May 2002. Another bomb was detonated near American and other businesses in Karachi in November 2005, killing three people and wounding 15 others. On March 2, 2006, a suicide bomber detonated a car packed with explosives as a vehicle carrying an American Foreign Service officer passed by on its way to Consulate Karachi. The diplomat, the Consulate’s locally employed driver and three other people were killed in the blast; 52 others were wounded.  

Several incidents of violence against American officials and U.S. mission employees in Pakistan have marred the relationship. In November 1979, false rumors that the United States had participated in the seizure of the Grand Mosque in Mecca provoked a mob attack on the U.S. Embassy in Islamabad in which the chancery was set on fire resulting in the loss of life of American and Pakistani staff. In 1989, an attack on the American Center in Islamabad resulted in six Pakistanis being killed in crossfire with the police. In March 1995, two American employees of the consulate in Karachi were killed and one wounded in an attack on the home-to-office shuttle. In November 1997, four U.S. businessmen were brutally murdered while being driven to work in Karachi. In March 2002 a suicide attacker detonated explosives in a church in Islamabad, killing two Americans associated with the Embassy and three others. There were also unsuccessful attacks by terrorists on the Consulate General in Karachi in May 2002. Another bomb was detonated near American and other businesses in Karachi in November 2005, killing three people and wounding 15 others. On March 2, 2006, a suicide bomber detonated a car packed with explosives as a vehicle carrying an American Foreign Service officer passed by on its way to Consulate Karachi. The diplomat, the Consulate's locally employed driver and three other people were killed in the blast; 52 others were wounded.  

The decision by India to conduct nuclear tests in May 1998 and Pakistan's matching response set back U.S. relations in the region, which had seen renewed U.S. Government interest during the second Clinton Administration. A presidential visit scheduled for the first quarter of 1998 was postponed and, under the Glenn Amendment, sanctions restricted the provision of credits, military sales, economic assistance, and loans to the government. The October 1999 overthrow of the democratically elected Sharif government triggered an additional layer of sanctions under Section 508 of the Foreign Appropriations Act, which include restrictions on foreign military financing and economic assistance. U.S. Government assistance to Pakistan was subsequently limited mainly to refugee and counter-narcotics assistance.  

The decision by India to conduct nuclear tests in May 1998 and Pakistan's matching response set back U.S. relations in the region, which had seen renewed U.S. Government interest during the second Clinton Administration. A presidential visit scheduled for the first quarter of 1998 was postponed and, under the Glenn Amendment, sanctions restricted the provision of credits, military sales, economic assistance, and loans to the government. The October 1999 overthrow of the democratically elected Sharif government triggered an additional layer of sanctions under Section 508 of the Foreign Appropriations Act, which include restrictions on foreign military financing and economic assistance. U.S. Government assistance to Pakistan was subsequently limited mainly to refugee and counter-narcotics assistance.  

The U.S.-Pakistan relationship changed significantly once Pakistan agreed to support the U.S. campaign to eliminate the Taliban in Afghanistan and to join the United States in the Global War on Terror. Since September 2001, Pakistan has provided extensive assistance in the war on terror by capturing more than 600 al-Qaida members and their allies. The United States has stepped up its economic assistance to Pakistan, providing debt relief and support for a major effort for education reform. During President Musharraf's visit to the United States in 2003, President Bush announced that the United States would provide Pakistan with $3 billion in economic and military aid over 5 years. This assistance package commenced during FY 2005.  

The U.S.-Pakistan relationship changed significantly once Pakistan agreed to support the U.S. campaign to eliminate the Taliban in Afghanistan and to join the United States in the Global War on Terror. Since September 2001, Pakistan has provided extensive assistance in the war on terror by capturing more than 600 al-Qaida members and their allies. The United States has stepped up its economic assistance to Pakistan, providing debt relief and support for a major effort for education reform. During President Musharraf's visit to the United States in 2003, President Bush announced that the United States would provide Pakistan with $3 billion in economic and military aid over 5 years. This assistance package commenced during FY 2005.  

Following the region’s tragic October 8, 2005 earthquake, the United States responded immediately and generously to Pakistan’s call for assistance. The response was consistent with U.S. humanitarian values and our deep commitment to Pakistan. At the subsequent reconstruction conference in Islamabad on November 19, 2005, the U.S. announced a $510 million commitment to Pakistan for earthquake relief and reconstruction, including humanitarian assistance, military support for relief operations, and anticipated U.S. private contributions.  

Following the region's tragic October 8, 2005 earthquake, the United States responded immediately and generously to Pakistan's call for assistance. The response was consistent with U.S. humanitarian values and our deep commitment to Pakistan. At the subsequent reconstruction conference in Islamabad on November 19, 2005, the U.S. announced a $510 million commitment to Pakistan for earthquake relief and reconstruction, including humanitarian assistance, military support for relief operations, and anticipated U.S. private contributions.  

President Bush and President Musharraf have affirmed the long-term, strategic partnership between their two countries. In 2004, the United States recognized closer bilateral ties with Pakistan by designating Pakistan as a Major Non-NATO Ally. President Bush visited Pakistan in March 2006, where he and President Musharraf reaffirmed their shared commitment to a broad and lasting strategic partnership, agreeing to continue their cooperation on a number of issues including: the war on terror, security in the region, strengthening democratic institutions, trade and investment, education, and earthquake relief and reconstruction.  

President Bush and President Musharraf have affirmed the long-term, strategic partnership between their two countries. In 2004, the United States recognized closer bilateral ties with Pakistan by designating Pakistan as a Major Non-NATO Ally. President Bush visited Pakistan in March 2006, where he and President Musharraf reaffirmed their shared commitment to a broad and lasting strategic partnership, agreeing to continue their cooperation on a number of issues including: the war on terror, security in the region, strengthening democratic institutions, trade and investment, education, and earthquake relief and reconstruction.  

====Foreign Trade and Aid====

====Foreign Trade and Aid====

[[File:Islamabad wet road Pakistan.jpg|thumb|320px|left|[[Islamabad]], the capital city of Pakistan.]]

[[File:Islamabad wet road Pakistan.jpg|thumb|320px|left|[[Islamabad]], the capital city of Pakistan.]]

Weak world demand for its exports and domestic political uncertainty have contributed to Pakistan's high trade deficit. In 2004, growth rebounded to approximately 6% with substantial improvement in public and external debt indicators and remained robust with 7.8% growth in 2005. Foreign reserves are at an all-time high of $11.5 billion. Pakistan's exports, which grew by 14.4% in 2005/2006, continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Major imports include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products, rising to 38.8% to $25.6 billion. External imbalance has left Pakistan with a growing foreign debt burden. The fiscal imbalance is reflected in a high level of total net public debt, which reached an estimated 92.6% of GDP in 2000-01, more than half involving external liabilities, but decreased to 72.7% in 2003. The fiscal deficit widened from 5.6% of GDP in 1994-95 to 7.7% in 1997-98 before declining to 4.5% in 2006. Despite a rise in tax collection, defense and development expenditure along with transfers to the provinces all rose in the 2006 budget, widening the deficit. Support for loss-making, state-owned enterprises and a weak domestic tax base are critical elements in the recurring fiscal deficits. The Pakistan Telecommunications Company Ltd. (PTCL) represented the largest of Pakistan’s privatization programs for 2005. Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investment regimes, either unilaterally or in the context of commitments made with the World Trade Organization (WTO), IMF, and the World Bank. In 2004-2005, efforts in several crucial areas seemingly intensified, resulting in Pakistan becoming a more open and secure market for its trading partners.  

Weak world demand for its exports and domestic political uncertainty have contributed to Pakistan's high trade deficit. In 2004, growth rebounded to approximately 6% with substantial improvement in public and external debt indicators and remained robust with 7.8% growth in 2005. Foreign reserves are at an all-time high of $11.5 billion. Pakistan's exports, which grew by 14.4% in 2005/2006, continue to be dominated by cotton textiles and apparel, despite government diversification efforts. Major imports include petroleum and petroleum products, edible oil, wheat, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products, rising to 38.8% to $25.6 billion. External imbalance has left Pakistan with a growing foreign debt burden. The fiscal imbalance is reflected in a high level of total net public debt, which reached an estimated 92.6% of GDP in 2000-01, more than half involving external liabilities, but decreased to 72.7% in 2003. The fiscal deficit widened from 5.6% of GDP in 1994-95 to 7.7% in 1997-98 before declining to 4.5% in 2006. Despite a rise in tax collection, defense and development expenditure along with transfers to the provinces all rose in the 2006 budget, widening the deficit. Support for loss-making, state-owned enterprises and a weak domestic tax base are critical elements in the recurring fiscal deficits. The Pakistan Telecommunications Company Ltd. (PTCL) represented the largest of Pakistan's privatization programs for 2005. Despite its economic and political difficulties, Pakistan has taken steps to liberalize its trade and investment regimes, either unilaterally or in the context of commitments made with the World Trade Organization (WTO), IMF, and the World Bank. In 2004-2005, efforts in several crucial areas seemingly intensified, resulting in Pakistan becoming a more open and secure market for its trading partners.  

Pakistan has received significant loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and the Asian Development Bank) and bilateral donors, particularly after it began using its military/financial resources in the war on terror. The United States pledged $3 billion for FY 2005 to FY 2009 in economic and military aid to Pakistan. In addition, the IMF and World Bank have pledged $1 billion in loans to Pakistan. In 2004 to 2007 alone, the World Bank has pledged over $500 million in investment projects.

Pakistan has received significant loan/grant assistance from international financial institutions (e.g., the IMF, the World Bank, and the Asian Development Bank) and bilateral donors, particularly after it began using its military/financial resources in the war on terror. The United States pledged $3 billion for FY 2005 to FY 2009 in economic and military aid to Pakistan. In addition, the IMF and World Bank have pledged $1 billion in loans to Pakistan. In 2004 to 2007 alone, the World Bank has pledged over $500 million in investment projects.