The waiving of U.S. sanctions and the promise of economic assistance cannot
have come too soon for Pakistan. The country has a teetering economy with an
external debt of $32 billion, with 60% of the
government's revenue going towards servicing the country's total debt. Prior
to September 22nd and October 17th waivers, U.S. assistance
to Pakistan was limited mainly to refugee and counter-narcotics assistance
as well as an education program. We offer a brief summary of the primary sanctions
that have been lifted.
On September 22nd, Glenn, Symington and Pressler sanctions, all
imposed due to Pakistan's nuclear weapons program, were waived for U.S. national
security reasons. In addition on October 17, Congress voted to allow the President
to waive the coup-related sanctions pursuant to Section 508 of the Foreign Assistance
Act. The "democracy sanctions," imposed on Pakistan when Mussharef
took over in a military coup in October 1999, restrict expenditure of bilateral
funds and financing to countries that overthrow democratic governments.
The Symington Amendment (to the aforementioned Foreign Assistance Act) prohibits
delivering or receiving economic assistance and military aid unless the President
certifies that Pakistan has not obtained any nuclear-enriched material. The
Glenn Amendment requires the termination of U.S. government economic assistance
and military transfers due to Pakistan's testing of a nuclear device in 1998
(this applies to India as well). It also prohibits U.S. support for non-Basic
Human Needs lending at the International Financial Institutes.The Pressler Amendment calls for sanctions on government to government
military sales and new economic assistance unless the President certifies that
Pakistan does not possess a nuclear device.
The Symington Amendment was first activated against Pakistan in 1979 because
of Pakistan's importation of equipment for the Kahuta uranium-enrichment facility,
a facility which is not subject to IAEA safeguards. However, the Soviet invasion
of Afghansitan in 1979 led to a shift in U.S. proliferation policies towards
Pakistan, and in 1981 Congress waived the Symington Amendment, citing national
security concerns.
Until 1990, the United States provided military aid to Pakistan to modernize
its conventional defensive capability. During this period the U.S. allocated
about 40% of its assistance package to non-reimbursable credits for military
purchases, the third largest program behind Israel and Egypt. The remainder
of the aid program was devoted to economic assistance.
Soon after the Soviets left Afghanistan in 1989, in 1990 the Bush I Administration
declined to make the certification that Pakistan does "not possess a nuclear
explosive device and that the proposed U.S. assistance program will significantly
reduce the risk that Pakistan will possess a nuclear explosive device."
As a result the Pressler Amendment went into effect against Pakistan, ending
all government to government military sales to Pakistan.
This Amendment prohibited the sale of 28 F-16s, for which Pakistan had placed
an order at the time. The country had already made a partial payment, but the
F-16s deal was frozen. In 1998 the Clinton Administration paid Pakistan in cash
and food credits to partly off-set the payments made for the F-16. Currently,
according to a report in Defense News, the Pentagon is conducting an
audit to determine what the U.S. owes Pakistan on the F-16 deal.
The non-delivery of the F-16s is still a sore spot with Islamabad, which hopes
that they will be delivered in the new environment. The country's true priority,
however, lies in economic assistance. The government would like to show a restive
populace that the decision to fight terrorism alongside the United States will
deliver real benefits for the people of Pakistan.