U.S. Assistance to Pakistan - Past and Present

U.S. Assistance to Pakistan - Past and Present

The U.S.-Pakistan development partnership goes back decades and has evolved considerably over time. The United States Agency for International Development (USAID) has provided nearly $7 billion to assist Pakistani government in achieving its important development goals since the start of its operations in 1961.
During the 1950s, the United States focused on helping the newly- independent Pakistan overcome the economic consequences of its partition from India. This assistance laid the foundation for Pakistan's future agricultural and industrial growth. It provided funds, materials for infrastructure and technical support to ease skill shortage and food.


In the 1960s, U.S. assistance represented over half of all foreign aid to Pakistan, covering one-third of Pakistan's development budget and financing half its import bill. From this point onward, USAID delivered the majority of U.S. Government development assistance to Pakistan. It supported Pakistan's efforts to boost agriculture and rapidly expand its industrial sector. The United States invested heavily in water, power, transportation, and communications.
During the 1970s, the United States turned its attention back to agriculture. In addition to helping Pakistan increase its fertilizer production, U.S. assistance helped Pakistan import fertilizer and improve its water and irrigation systems. USAID worked with Pakistani agricultural scientists and engineers to develop water and irrigation systems on farms. USAID joined other international donors to finance two of the largest dams in the world: Tarbela and Mangla. The dams continue to make significant contributions to Pakistan's energy and agricultural sectors today. In the same period, the U.S. also supported nutrition research, malaria control, population planning, and health care for rural areas.
The 1982-1987 phase of U.S. assistance to Pakistan was a milestone in U.S.-Pakistan relations. Cooperation between the two countries was close as they negotiated a $1.62 billion program in 1981. Pakistani institutions carried out most of the activities. Almost all projects were national in scope, with activities in all four provinces. To help meet pressing needs in less developed parts of the country, USAID funded several region-specific "area development" projects at the government's request. The goal was to respond to the priorities set by the government in its annual and five-year development plans.

From 1988-1993, the United States provided an additional $2.28 billion for development projects. $480 million was used to import needed agricultural items. The rest was in grants. During this period, USAID continued to build on successful programs begun in earlier phases. USAID also invested in expanding private investment in Pakistan, guarantees for housing loans to strengthen the housing market, mobilizing shelter resources and the Institutional Excellence Project.
From 1991-2001, US Government imposed nuclear non-proliferation sanctions, therefore, under a humanitarian assistance regulation [P.L. 106-429, Sec. 541(a)], USAID worked with, and through, non-governmental organizations (NGOs) on narcotics control, basic education and community-based learning; literacy and skills development; reproductive health (including family planning), maternal and child health care; income earning activities; strengthening of local NGOs and community organizations; and policy advocacy at the national, provincial, and local levels.
After a eight-year pause, USAID reopened its Mission in Pakistan in July 2002. The agency's strategy, developed in consultation with Pakistani counterparts, focuses on education, health, governance and economic growth. Currently, USAID has direct funding relationships with some 40 partner organizations covering all elements of the USAID portfolio in Pakistan. Nearly half of the projects implemented by those partner organizations are headed by Pakistanis.
In addition to its core development strategy, USAID has played an important role in helping Pakistan respond to humanitarian disasters with relief, recovery, and reconstruction assistance. First in response to the devastating October 2005 earthquake that killed approximately 74,000 people USAID helped the people of the earthquake-affected areas "build back better" with new earthquake resistant schools and health facilities. Assistance to that region is also increasing economic opportunities. Then in 2009 following the conflict in the Federally Administered Tribal Areas and Khyber Pakhtunkhwa, USAID provided humanitarian assistance to the internally displaced people who left their homes by the millions to escape the violence and later committed funds to reconstruction projects that would restore infrastructure damaged in the conflict. Most recently, USAID played a critical role after heavy monsoon flooding struck Pakistan in July 2010, by providing nearly $550 million for relief and recovery efforts. Complementing emergency rescue operations by the U.S. military, USAID's assistance focused on providing shelter, food, water, health services, and essential supplies to affected communities, including displaced families. At the beginning relief efforts focused on staving off a major health crisis. As the floods receded USAID transitioned to providing early recovery assistance so that people could return home, resume their lives, and avoid longer-term suffering.
Today, USAID, in conjunction with the U.S. Department of State, focuses assistance to Pakistan in five priority sectors: energy, economic growth, stabilization, education, and health within the current strategic and policy framework. Focusing our assistance in these five key areas will increase a national high visibility impact and effectiveness, as well as accelerate implementation.




With the support of the Enhanced Partnership with Pakistan Act of 2009 (also referred to sometimes as the "Kerry-Lugar-Berman Bill", for the co-sponsors, Senator John Kerry (D-Massachusetts), Senator Richard Lugar (R-Indiana) and Representative Howard Berman (D-California)), USAID aims to strengthen the Government of Pakistan's capacity to effectively provide services to its citizens and to address the country's urgent development needs, and to deepen a strategic partnership with the Pakistani people and their government. By supporting Pakistanis to create a stable and prosperous country, U.S. assistance will have a greater and more sustainable impact over the long-term.