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#CARD:Pakistan:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  Pakistan

June 1992
Official Name:  Islamic Republic of Pakistan

PROFILE
Geography
Area:  803,943 sq. km. (310,527 sq mi.); about twice the size of
California.  Cities:  Capital--Islamabad (pop. 400,000), combined with
adjacent Rawalpindi, makes up a national capital area with a population
in excess of 1.2 million; Karachi 7 million; Lahore 3.5 million;
Faisalabad 2 million.

People
Nationality: Noun and adjective--Pakistan(i).  Population:  117 million.
 Annual growth rate (mid-1988): 3%.  Density: 134 per sq. km. (346 per
sq. mi.).  Ethnic groups: Punjabi, Sindhi, Pathan, Baluch, Muhajirs
(i.e., Urdu-speaking immigrants from India).  Religions: Muslim 97%;
small minorities of Christians, Hindus, and others.  Languages:  Urdu
(official), English, Punjabi, Sindhi, Pushtu, Baluchi.  Education:
Literacy--26%.  Health: Infant mortality rate (1991)--109/1,000.  Life
expectancy (1991)--men 56 yrs., women 57 yrs.  Work force:
Agriculture--54%.  Services--33%.  Industry--13%.

Government
Type:  Parliamentary democracy in a federal setting.  Independence:
August 14, 1947.
Branches:  Executive--president with constitutional authority, prime
minister, cabinet.  Legislative--National Assembly and Senate.
Judicial--provincial high courts, Supreme Court, Federal Islamic Court.
Political parties:  The Islamic Democratic Alliance (IJI in Urdu), which
includes the Pakistan Muslim League, and the Pakistan People's Party
(PPP), are the most important on the national level.  Other significant
parties include the Muhajir Quami Movement (MQM), the Awami National
Party (ANP), and the Jamiat-ul-Ulema-i-Islam (JUI).  Suffrage:
Universal adult over 21.  Religious minorities and women vote for
special reserved seats.
Political subdivisions:  Four provinces--Punjab, Sindh, Northwest
Frontier, Baluchistan--each with a parliamentary system; Northern Areas;
Tribal Areas; Federal Capital.
Flag:  White vertical band on staff side; green field with white
crescent and star in center.

Economy
GNP (Pakistan fiscal year (FY) 1990): $43 billion.  Annual growth rate
1990:  5%.  Per capita GNP (FY1990):  $380.  Per capita growth rate (FY
1990):  2%.
Natural resources:  Arable land, natural gas, limited petroleum,
substantial hydropower potential, coal, iron ore.
Agriculture (26% of GNP):  Products--wheat, cotton, rice, sugarcane.
Industry (18% of GDP):  Types--textiles, fertilizer, steel products,
food processing, oil and gas products.
Trade (Pakistan FY 1990):  Exports--$4.9 billion: raw cotton, rice,
cotton yarn, textiles, fruits, vegetables.  Major partners--Japan, US,
UK, Saudi Arabia, Germany.  Imports--$6.3 billion:  crude oil, cooking
oil, fertilizers, machinery.  Major partners--Japan, US, Saudi Arabia,
Malaysia, UK, Sri Lanka.
Fiscal year:  July 1-June 30.
Official exchange rate (1991):  about 22 rupees=US$1.
Economic aid received:  Total--about $36 billion (1947-85).  US only
(1981-87)--$3 billion; (1988-1993 est.)--$350 million annually.  Major
donors--(aid to Pakistan consortium--US, Canada, Japan, some West
European countries), World Bank, Asian Development Bank, Saudi Arabia.

PEOPLE
 Most Pakistanis live in Karachi, in the Indus River valley, and along
an arc formed by the cities of Faisalabad, Lahore, Rawalpindi/Islamabad,
and Peshawar.  Punjabis are in the majority, with minorities of other
Indo-European language-speaking peoples.
 The official language is Urdu; spoken as a first language by only 9% of
Pakistanis; 65% speak Punjabi, 11% Sindhi, and 24% other languages
(Saraiki, Baluchi, Brahui).  Urdu, Punjabi, Pushtu, and Baluchi are of
the Indo-European language group; Brahui is believed to have a Dravidian
(pre-Indo-European) origin.  English is widely used within the
government, the military, and in many institutions of higher learning.
The government plans gradually to replace English with Urdu in schools
and to introduce Arabic for Islamic studies.

HISTORY
 Archeology has revealed impressive ruins of a 4,500-year old urban
civilization in Pakistan's Indus River valley.  The reason for the total
collapse of this highly developed culture is unknown.  A major theory is
that it was crushed by successive invasions of Aryans,
Indo-European-speaking warrior tribes from the Caucasus region in what
is now the Soviet Union.  The Aryans, who quickly dominated the
subcontinent, were followed in 500 BC by Persians and, in 326 BC, by
Alexander the Great, conqueror of the Persian Empire.
 Pakistan's Islamic history began with the arrival of Muslim traders in
the 8th century AD.  During the 16th and 17th centuries, the Mughuls
(Persian for "Mongol") united most of South Asia in an empire marked
both by its administrative effectiveness and cultural refinement.
 British traders arrived in the region in 1601, but the British Empire
did not consolidate its control there until the latter half of the 18th
century.  After 1850, the British, or those influenced by them, governed
virtually the entire subcontinent, including most of what is now
Pakistan.
 In the early 20th century, Muslim and Hindu leaders began to press for
a greater degree of independence.  At the movement's forefront was the
largely Hindu Indian National Congress.  Growing concern about Hindu
domination of the movement led Muslim leaders to form the All-India
Muslim League in 1906.  In 1913, the League formally adopted the same
goal as the Indian National Congress:  self-government for India within
the British Empire.  The Congress and the League were unable, however to
agree on a formula to ensure the protection of Muslim religious,
economic and political rights.  Over the next two decades, mounting
tension between Hindus and Muslims led to a series of bitter communal
conflicts.

Pakistan and Partition
 The idea of a separate Muslim state emerged in the 1930s.  It gained
popularity among Indian Muslims after 1936, when the Muslim League
suffered a decisive electoral defeat in the first elections under the
1935 constitution.  On March 23, 1940, Muhammad Ali Jinnah, leader of
the Muslim League, publicly endorsed the "Pakistan Resolution," that
called for the creation of an independent state in regions where Muslims
were a majority.
 At the end of World War II, the United Kingdom, under considerable
international pressure to reduce the size of its overseas empire, moved
with increasing urgency to grant India independence.  The Congress Party
and the Muslim League could not, however, agree on the terms for
drafting a constitution or establishing an interim government.  In June
1947, the British Government declared that it would grant full dominion
status to two successor states--India and Pakistan.  Pakistan would
consist of the contiguous Muslim-majority districts of western British
India, plus parts of Bengal.  The various princely states could freely
join either India or Pakistan.  These arrangements resulted in a
bifurcated Muslim nation separated by more than 1,600 kilometers (1,000
mi.) of Indian territory when Pakistan became a self-governing dominion
within the Commonwealth on August 14, 1947.  West Pakistan comprised
four provinces and the capital, Lahore.  East Pakistan was formed of a
single province.  Each province had a legislature.

After Independence
 Pakistan's history for the next 26 years was marked by political
instability and economic difficulties.  Dominion status was rejected in
1956 in favor of an "Islamic Republic within the Commonwealth."
Attempts at civilian political rule failed, and the government imposed
martial law between 1958 and 1962 and 1969 and 1972.  Frictions between
West and East Pakistan culminated in a 1971 army crackdown against the
East Pakistan dissident movement led by Sheikh Mujibur Rahman, whose
Awami League Party had won 167 seats out of 313 National Assembly seats
on a platform of greater autonomy for the eastern province.
 Mujibur Rahman was arrested and his party banned.  Many of his aides
and more than 1 million Bengali refugees fled to India, where they
established a provisional government.  Tensions escalated and
hostilities broke out between India and Pakistan in late November 1971.
The combined Indian-Bengali forces soon overwhelmed Pakistan's small
army contingent in the East.  By the time Pakistan's forces surrendered
on December 16, 1971, India had taken numerous prisoners and gained
control of a large area of East Pakistan.

The Years of Zulfiqar Ali Bhutto
 Pakistan's defeat in East Pakistan resulted in the fall of military
strongman Yahya Khan on December 20, 1971.  Zulfiqar Ali Bhutto, whose
Pakistan People's Party (PPP) had won a majority of the seats in West
Pakistan in the 1970 elections, replaced Yahya.  East Pakistan gained
independence as Bangladesh.
 Bhutto moved decisively to restore national confidence after the East
Pakistan disaster.  He pursued an active foreign policy, taking a
leading role in Islamic and Third World forums.  Although Pakistan did
not join the Nonaligned Movement until the Central Treaty Organization
(CENTO) was dissolved in 1979 (after Bhutto's fall), its position on
most issues coincided with the goals of the Non-Aligned Movement
throughout Bhutto's tenure.
 Domestically, Bhutto cultivated the allegiance of both urban and rural
poor.  He nationalized major industries and the banking system and
dramatically increased wages and benefits for lower income industrial
workers.  The government also instituted a land reform program and
attempted to restructure the feudal social system still intact in many
rural areas, but the results never met expectations.  In 1973, Bhutto
promulgated a new constitution approved by all political elements and
stepped down as president to become prime minister.
 Although Bhutto never departed from his populist and reformist
rhetoric, he increasingly relied for support on Pakistan's urban
industrialists and rural landlords.  His rule also grew more
authoritarian and capricious.  Over time the economy stagnated, largely
as a result of the dislocation and uncertainty created by Bhutto's
frequently changing economic policies.
 When Bhutto called for elections in March 1977, nine leading opposition
parties--from the secularist, pro-autonomy National Democratic Party
(which enjoyed significant support in the Northwest Frontier and
Baluchistan) to the conservative, religious Jamaat-i-Islami--joined to
form the Pakistan National Alliance (PNA).  The PNA focused its campaign
on the alleged inefficiency, corruption, and immorality of the Bhutto
regime.  Its attack seemed to strike a responsive chord, and the outcome
of the elections appeared uncertain.  After Bhutto claimed a victory
with two-thirds of the National Assembly seats in the Pakistan People's
Party (PPP) hands, the opposition PNA denounced the election as a fraud
and demanded new elections.  Bhutto resisted and, after a wave of
violence swept the country, arrested the PNA leadership.

1977 Martial Law
 The army grew restive in its role as enforcer of civil order in the
face of increasing anti-government unrest.  On July 5, 1977, the
military removed Bhutto from power, declared martial law, and suspended
portions of the 1973 constitution.  Chief of Army Staff Gen. Muhammad
Zia Ul-Haq became Chief Martial Law Administrator and promised to hold
new elections within 90 days.
 Initially, Zia claimed that he had not directed his action against
Bhutto and that Bhutto could contest the election scheduled for October
1977.  However, after it had become clear that Bhutto's popularity had
survived his government, Zia reversed his decision.  Acting in his role
as Martial Law Administrator, Zia postponed the October 1977 elections
and began criminal investigations of the senior PPP leadership.  Bhutto,
released from house arrest earlier along with other political leaders,
was re-arrested, tried, and convicted for conspiracy to murder a
political opponent, whose father was killed in the murder attempt.  The
Supreme Court upheld the verdict and death sentence, and, despite
international appeals on his behalf, Bhutto was hanged on April 6, 1979.
 After backing away from his initial commitment to hold elections within
90 days, Zia began to institutionalize his regime.  He created an
Advisory Council formed mostly of technocrats and government servants.
In August 1978, representatives of several political parties were added
to the council, redesigned as a cabinet.  Following the resignation of
President Choudhury in September, Zia assumed the presidency and called
elections for November.
 As the elections neared, it became clear that the PNA had fallen into
disarray and the PPP was once more the strongest party nationwide.
Fearful of a PPP victory, Zia banned political activity in October 1979
and postponed the national elections.  Only the elections for local
bodies were held, and these took place on a non-party basis.
 In 1980, most center and left parties, led by the PPP, formed the
Movement for the Restoration of Democracy (MRD).  The MRD demanded Zia's
resignation, an end to martial law, new elections, and restoration of
the 1973 constitution as it existed before Zia's takeover.  In early
December 1984, President Zia proclaimed a national referendum for
December 19, asking voters to approve his program for Islamization.  He
also declared that if voters passed the referendum, they would approve
his continuation in office for 5 years from the first sitting of the
next National Assembly.  Zia's opponents, led by the MRD, called for a
boycott.  Subsequently, the government claimed a 63% turnout, with more
than 90% approving the referendum.  Many outside the government
questioned these figures.
 Capitalizing on his referendum victory, President Zia announced
national and provincial assembly elections for February 1985.
Candidates were required to run on a non-party basis but were not
disqualified because of past party affiliation.  Perhaps misjudging the
effectiveness of its referendum boycott and the appeal of new elections,
the MRD again urged the voters to stay home.  However, several
conservative and religious parties, including the Pakistan Muslim League
faction headed by the Pir of Pagaro and the Jam-aat-i-Islami, endorsed
the balloting.  The MRD suffered numerous defections, as politicians
abandoned their parties to stand for office.  The boycott failed, and
most independent observers vouch for the claimed 53% turnout for the
National Assembly balloting (with a slightly higher percentage of voter
turnout in the provincial elections).  The elections generally were free
of fraud (as evidenced by the defeat of 5 serving members of Zia's
Cabinet).  The boycott failure accentuated divisions within the MRD and
left Zia's opposition in further disarray.
 On March 3, 1985, President Zia proclaimed constitutional changes
designed to increase the power of the president vis-a-vis the prime
minister.  (Under the 1973 constitution the president's role was largely
that of a figurehead.) Subsequently, Zia named Muhammad Khan Junejo, a
Muslim League member, as his choice for prime minister.  The new

National Assembly met for the first time on March 23, 1985, and
unanimously endorsed Junejo as prime minister.
 The ensuing National Assembly session was dominated by the debate over
President Zia's proposed eighth amendment to the constitution that would
legitimate the actions of the martial law government and exempt them
(including decisions of the military courts) from judicial review.  The
amendment passed in October 1985, after a compromise was reached on a
series of modifications restoring some powers to the prime minister.

The Return of Democracy
 On December 30, 1985, President Zia lifted martial law and restored all
the constitutional rights safeguarded under the 1973 constitution.  He
also lifted the Bhutto government's declaration of emergency powers.
The first months of 1986 witnessed a rebirth of political activity
throughout Pakistan.  All parties--including those continuing to deny
the legitimacy of the Zia/Junejo government--were permitted to organize
and hold rallies.  In April 1986, PPP leader Benazir Bhutto, daughter of
the deposed prime minister, returned to Pakistan from exile in Europe.
 Following the lifting of martial law, Prime Minister Junejo launched a
concerted effort to strengthen his Pakistan Muslim League (PML), which
was registered as an official party in February 1986, as a political
force capable of contending with the PPP and its MRD allies on a
national level.  Prime Minister Junejo's increasing independence
eventually led to a rift with President Zia.  There were also
differences between them on Pakistan's Afghan policy.  Zia was an
unabashed and outspoken supporter of the Afghan Resistance, which had
been fighting occupying Soviet forces since those forces invaded
Afghanistan in 1980.  Junejo repeatedly expressed his concern over the
effect the conflict, and particularly the presence of 3 million Afghan
refugees in Pakistan, might have on Pakistan's internal security.
 On May 29, 1988, President Zia, citing corruption and the prime
minister's reluctance to support his Islamization policies, dismissed
the Junejo government and called elections for November.  In June, Zia
proclaimed that Sharia (Islamic law) would be supreme in Pakistan and
all civil law must agree with traditional Muslim edicts.
 On August 17, a military aircraft carrying Zia, American Ambassador
Arnold Raphel, chief of the US military aid mission to Pakistan Brig.
Gen. Herbert Wassom, and 28 Pakistani military officers, crashed while
returning from a military equipment trial near Bahawalpur.  All on board
were killed.  President of the Senate Ghulam Ishaq Khan assumed the
presidency in accordance with the constitution.
 President Khan announced almost immediately that the elections,
scheduled for November, would go forward as planned.  The Supreme Court,
which had played a very limited role under Zia, made a series of
decisions during the summer of 1988 that helped ensure the democratic
character of the November balloting.
 Observers judged the National Assembly elections on November 16 to have
been the fairest and most orderly in Pakistan's history.  The PPP won 93
of the 205 seats contested.  The Islamic Democratic Alliance, a
coalition including the Pakistan Muslim League, ran a distant second,
winning 55 seats.  The PPP in conjunction with several smaller parties
built a viable coalition; on December 1, President Ghulam Ishaq Khan
formally requested PPP leader Benazir Bhutto to form a government.
 Differing interpretations of constitutional authority and
responsibility hindered Pakistan's efforts to develop democratic
institutions throughout the 20 months of Ms. Bhutto's tenure.  A
constitutional debate over the powers of the president and prime
minister was caused in part by changes made in the constitution by the
late President Zia.  There was also a debate over the powers of the
central government versus those of the provinces.  Political differences
between the Bhutto administration  and opposition governments in Punjab
and Baluchistan seriously impeded social and economic reform programs.
Ethnic divisions, primarily in Sindh, exacerbated the problems caused by
strong political, constitutional, and regional differences.  The result
of these differences, plus the weakness of central and provincial law
enforcement agencies and the superabundance of weapons, was a serious
deterioration in law and order.
 On August 6, 1990, President Khan, pursuant to his powers under the
constitution, dismissed the Bhutto government and dissolved the National
Assembly.  The provincial assemblies were also dissolved.  The president
called for elections to be held on October 24 for the National Assembly
and October 27 for provincial assemblies.  Caretaker governments were
formed at the center and in the four provinces.  A state of emergency
was declared to enable the president to administer in the absence of the
assemblies.  Special tribunals, as provided for under the law, were
established to try politicians accused of corruption or misconduct while
in office during the period since December 1988.  Civilian
administrators and the courts continued to function, and the basic
rights guaranteed under the constitution were untouched.
 The elections were held as scheduled and were observed by a number of
international teams.  Although marred by some irregularities, they were
considered to have been generally free and fair.  On November 6,
Muhammad Nawaz Sharif, leader of the Islamic Jamhoori Ittehad (IJI) was
overwhelmingly elected prime minister by the members of the assembly.
His first official act as prime minister was to lift the state of
emergency.

GOVERNMENT AND POLITICAL CONDITIONS
 The constitution of August 14, 1973, as amended in 1985, provides for a
president (chief of state) elected by an electoral college (consisting
of the Senate, National Assembly, and the members of the provincial
assemblies), and a prime minister--(head of government) nominated by the
president and elected by the National Assembly in special session.
Following the election, the prime minister is invited by the president
to form the government.
 The National Assembly--217 members elected by universal adult suffrage
(207 Muslims and 10 non-Muslims)--has a 5-year term subject to
dissolution. In 1990, a constitutional provision which established 20
reserved seats for women lapsed, and has not been renewed. The Senate,
not subject to dissolution, consists of 84 members elected indirectly
for 6 years by the provincial assemblies and tribal councils; plus three
members elected from the federal area of Islamabad, as determined by the
president.  Half of the members stand for reelection every 3 years.
 The constitution permits a vote of "no confidence" against the prime
minister by a majority of the total assembly membership, provided that
the assembly is not in the annual budget session.
 Two lists--federal and concurrent--specify jurisdiction on legislative
subjects; all residual powers belong to the provinces.  According to the
1973 constitution, the president, after consultation with the prime
minister, appoints provincial governors, who act on the advice of the
cabinet or chief minister of the province.  Each province has a high
court, with the justices appointed by the president after consultation
with the chief justice of the Supreme Court, the provincial governor,
and the provincial chief justice.  Pakistan's highest court is the
Supreme Court.  The president appoints the chief justice and, in
consultation with him, the remaining justices.
 During the martial law period, the powers and independence of the
civilian judiciary were curtailed.  Various martial law decrees extended
the jurisdiction of military tribunals and prohibited the civilian
judiciary from reviewing the procedures and decisions of military
courts.

Principal Government Officials
President--Ghulam Ishaq Khan
Prime Minister--Mian Muhammad Nawaz Sharif
Minister of State for Foreign Affairs--Muhhamad Siddique Khan Kanju
Ambassador to the US--Syeda Abida Hussain
Ambassador to the UN--Jamsheed Marker

 Pakistan maintains an embassy in the United States at 2315
Massachusetts Avenue, NW., Washington, DC  20008  (tel. [phone]).

ECONOMY
 Pakistan is a relatively poor country but has the resources and
entrepreneurial skill to support rapid economic growth.  In fact, real
growth of gross domestic product (GDP) averages 8% per year over the
decade of the 1980s (fiscal years 1981-90), with generally moderate
inflation.  Growing  fiscal imbalances, however, pushed the budget and
current account deficits to unsustainable levels by decade's end.
Economic growth has slowed in recent years; real GDP expanded 5% in FY
1990 and about 6% in FY 1991.  Measures adopted under a 4-year,
IMF-sponsored structural adjustment program (FY 1989-92) have improved
fiscal and monetary conditions, and eased the foreign exchange gap on
the balance of payments.  But deficit financing has substantially
increased the government's domestic and external debt burdens.  Domestic
debt service payments, for example, consumed 32% of current expenditures
in the FY 1991 budget (defense spending took another 43%).
 In FY 1991, the Government of Prime Minister Nawaz Sharif launched an
ambitious program of privatization, deregulation, and economic reform.
Despite a slow start and resistance from the bureaucracy and labor
unions, the government is pushing ahead with the denationalization of
banks, industrial firms, and utilities.  In addition, the government has
eased controls on foreign exchange, removed barriers to foreign
investment, and liberalized foreign access to Pakistan's growing capital
market.  The Prime Minister's reform program has accelerated the trend
toward private enterprise and a market economy already underway for a
decade.  For example, investment in manufacturing in FY 1981 was fairly
equally divided between the public and private sectors.  But in 1991,
private investment was more than 12 times higher than in the public
sector.  The government envisions the virtual elimination of public
sector involvement in manufacturing by the end of FY 1992.
 Nonetheless, Pakistan still has a long way to go in terms of economic
development.  With per capita GNP of about $380, the World Bank ranks
Pakistan as a  low-income country roughly on a par with China and India.
 Only about 26% of adults are literate, and life expectancy  at birth is
about 56 years.  The population, currently about 117 million, is
estimated to be growing at about 3% per year, and is expected to double
within 20 years.  Relatively few resources have been devoted to
socioeconomic development (especially education, health, and population
programs) or infrastructure projects.  Development accounted for 28% of
total expenditures in the FY 1991 budget.

Agriculture and Natural Resources
 The country's principal natural resource is its arable land (25% of the
total land area is under cultivation).  Agriculture accounts for about
26% of GDP and employs more than 50% of the labor force.  Pakistan
boasts the largest contiguous irrigation system in the world, making
cultivation possible in semi-arid regions of the country.  The most
important crops include wheat, cotton, and rice, which together account
for almost 70% of total crop output by value.  Intensive farming
practices have enabled Pakistan to become a net food exporter.  Pakistan
exports rice, fish, fruits, and vegetables, and imports wheat, vegetable
oil, and sugar.
 Pakistan has extensive energy resources, including fairly sizable
natural gas reserves, some proven oil reserves, and large hydropower
potential.  Exploitation of energy resources has been slow, however, and
domestic demand for power continues to outstrip supply.  The government
is developing new thermal and hydro-power generation capability and is
encouraging private investment in power development, with some support
by foreign donor agencies.  Petroleum production, in which foreign oil
companies participate, totals about 65,000 barrels per day out of a
total requirement of 125,000 barrels per day.  Coal is also mined in
Pakistan, with production reaching about  267,000 tons in FY 1991.

Industry
 Cotton textile and apparel manufacturing is Pakistan's largest
industry, accounting for nearly 20% of total manufacturing output and
almost 40% of total exports.  Other major industries include cement,
fertilizer, edible oil, sugar, steel, machinery, and food processing.
Large-scale manufacturing units account for about 70% of total output
value.  The public sector, which includes many enterprises nationalized
in the 1970s, produced about 30% of FY 1991 manufacturing output.  The
public sector share, however, is expected to decline sharply as state
industrial units are sold to private investors.

Foreign Trade
 Strong export performance and moderate import growth during FY 1991
significantly improved Pakistan's balance of payments.  Pakistan's
exports are dominated by cotton textiles and apparel, rice, leather
products, surgical and sports equipment, and carpets.  Major imports
include petroleum and petroleum products, edible oil, chemicals,
fertilizer, capital goods, industrial raw materials, and consumer
products.  Despite the impact of temporarily higher oil prices and the
loss of some 100,000 Pakistani jobs in Kuwait and Iraq as a result of
the Gulf crisis, the FY 1991 current account deficit declined to $1.5
billion, down from nearly $2 billion in FY 1989.  Amortization of
Pakistan's large but manageable external debt burden (about $25 million)
consumed about 26% of export earnings in FY 1991.  Pakistan receives
about $2 billion per year in loan/grant assistance from international
financial institutions (IMF, World Bank, Asian Development Bank) and
bilateral donors, including the US Agency for International Development
(US aid is currently suspended because of concerns about Pakistan's
nuclear program).

DEFENSE
 Pakistan's 500,000-member armed forces, the world's 11th largest, are
well trained and disciplined.  Pakistan operates military equipment from
several foreign sources--the United States, China,   France, the United
Kingdom, and others.  Much of this equipment is outdated.  Pakistan's
extensive efforts to modernize its defense capability are frustrated by
its limited industrial base and fiscal resources.
 Until 1990, a portion of US aid to Pakistan was used to help modernize
Pakistan's conventional defensive capability.  The United States
allocated about 40% of its current (1988-93) assistance package to
nonreimbursable credits for military purchases.  The remainder of the
program is devoted to economic assistance.  The ratio of military
assistance to economic assistance has decreased slightly in recent
years, at the request of the Government of Pakistan.  Military aid and
other assistance was suspended in October 1990 due to the
Administration's inability to certify under the Pressler amendment to
the Foreign Assistance Act (Section 620E(e)) that "Pakistan does not
possess a nuclear explosive device and that the proposed United States

assistance package will reduce significantly the risk that Pakistan will
possess a nuclear explosive device."

FOREIGN RELATIONS
 Pakistan is a non-aligned country, a prominent member of the
Organization of the Islamic Conference (OIC), and an active UN member.
In 1989, Pakistan rejoined the Commonwealth.  Its foreign policy
encompasses historically difficult relations with India, a desire for a
stable Afghanistan, long-standing close relations with China, extensive
security and economic interests in the Persian Gulf (including cordial
relations with Iran), and wide-ranging bilateral relations with the
United States.

India
 Relations between Pakistan and India reflect centuries-old Muslim-Hindu
rivalries and suspicions.  Although many issues divide the two
countries, the most sensitive one since independence has been the status
of Kashmir.
 At the time of partition, Kashmir, although ruled by a Hindu maharajah,
had an overwhelmingly Muslim population.  When the maharajah hesitated
in acceding to either Pakistan or India in 1947, some of his Muslim
subjects, aided by tribesmen from Pakistan, revolted in favor of joining
Pakistan.  The Kashmiri ruler offered his state to India in return  for
military aid in crushing the revolt.   Indian troops occupied the
eastern portion of Kashmir, including its capital, Srinigar, while the
western half came under Pakistani control.
 India took this dispute to the United Nations on January 1, 1948.  One
year later, the United Nations arranged a cease-fire along a line
dividing Kashmir roughly in half but leaving the northern end of the
line undemarcated and the Vale of Kashmir (with the majority of the
population) under Indian control.  India and Pakistan agreed to hold a
UN-supervised plebiscite to determine the state's future, but India did
not fulfill this commitment.
 Full-scale hostilities erupted in September 1965, when India alleged
that terrorists trained and supplied by Pakistan were operating in
India-controlled Kashmir.  Hostilities ceased 3 weeks later, following
mediation efforts by the United Nations and friendly nations.  In
January 1966, Indian and Pakistani representatives met in Tashkent,
USSR, and agreed to work for a peaceful settlement of the Kashmir
dispute and other differences.
 Following the 1971 crisis in East Pakistan, which led to the war that
ended with the emergence of independent Bangladesh, President Bhutto and
Indian Prime Minister Indira Gandhi met in the mountain town of Simla,
India, in July 1972.  They agreed on the withdrawal of forces from
occupied territories, the determination of a line control in Kashmir,
and settlement of bilateral disputes through peaceful means.  In 1974,
Pakistan and India agreed to re-establish postal and telecommunications
links and measures to facilitate travel.  After a hiatus of 5 years,
trade and diplomatic relations were restored in 1976.
 Strains in bilateral relations continue over defense and internal
security matters, communal concerns, and economic issues.  India's
self-proclaimed "peaceful nuclear explosion" in 1974 led to great
uncertainty in Pakistan, and is generally acknowledged to have been the
impetus for Pakistan's alleged clandestine nuclear research.  In 1983,
the two nations exchanged charges that each was aiding the other's
separatists, i.e., Sikhs in India's (east) Punjab State and Sindhis in
Pakistan's Sindh Province.  In addition, conflict arose between Indian
and Pakistani troops in the remote Siachin Glacier region of northern
Kashmir, while New Delhi sharpened its criticism  of  what it alleged
was Pakistan's clandestine nuclear weapons program.  Tensions diminished
after Rajiv Gandhi replaced his assassinated mother as Indian Prime
Minister in November 1984 and a group of Sikh hijackers was brought to
trial by Pakistan in March 1985.  In December 1985, President Zia and
Prime Minister Gandhi pledged that neither would launch a first strike
against the other's nuclear facilities. A formal "no first strike"
agreement was signed in January 1991.  High-level talks began in early
1986 to resolve the Siachin Glacier border dispute and to improve trade.
Bilateral tensions rose again in early 1990 as Kashmiri militants
challenged the authority of the Indian Government.  Subsequent frequent
bilateral meetings on high levels have helped lay the groundwork for
improvement in the relationship.  These issues, and particularly unrest
in Indian-controlled Kashmir and in India's (east) Punjab State, are
likely to continue to dominate Indo-Pakistani relations.

Afghanistan
 Pakistan played a vital role in supporting Afghan Resistance fighters
following the 1980 Soviet invasion. In the wake of the Soviet withdrawal
from Afghanistan in February 1989, Pakistan remained an important source
of support for the Afghan Resistance.  More than 3 million Afghan
refugees are in Pakistan, but are returning in increasing numbers.
Pakistan, in cooperation with the world community, undertook a massive
relief effort to care for the refugees.  The United States has provided
nearly $500 million in humanitarian assistance for Afghan refugees in
Pakistan, mainly through multilateral organizations.

The Former Soviet Union
 Under military leaders Ayub Khan, Pakistan sought to improve relations
with Moscow; trade and cultural exchanges between the two countries
increased between 1966 and 1971.  With the beginning of the East
Pakistan crisis in March 1971, however, Soviet criticism of Pakistan's
position cooled relations; and many Pakistanis believed that the August
1971 Indo-Soviet Treaty of Friendship, Peace and Cooperation encouraged
Indian belligerency.  Subsequent Soviet arms sales amounting to billions
of dollars on concessional terms to India--in addition  to all the
Soviet arms sales throughout the 1960s--reinforced this view.
 During the 1980s, tensions increased between the Soviet Union and
Pakistan, because of the latter's key role in organizing political and
material support for the Afghan rebel forces.  As the Soviet withdrawal
neared, the Soviet Government increased its attempts to intimidate
Pakistan.  Changes in the former Soviet Union will probably lead to
improved bilateral relations.

People's Republic of China
 Pakistan recognized the People's Republic of China (PRC) in 1950 and
was among the first countries to do so.  Following the Sino-Indian
hostilities of 1962, Pakistan's relations with China grew much closer,
and the two countries have concluded a variety of agreements and
regularly exchange high-level visits.  China has provided economic,
military, and technical assistance to Pakistan.
 Good relations with China have been  essential to Pakistan's foreign
policy.  Pakistan views the PRC as a regional counterweight to India and
the former Soviet Union, and the PRC strongly supported Pakistan's
opposition to Soviet involvement in Afghanistan.

Iran and the Persian Gulf
 Pakistan has long-standing geopolitical, historical, and
cultural-religious ties with Iran.  The two countries enjoy cordial
relations.
 Despite popular support for Iraq, the Pakistani Government supported
the coalition against Iraq's invasion of Kuwait and sent 11,600 troops
to defend Saudi Arabia. Pakistan's relations with Iran are tempered by
its extensive ties to Saudi Arabia and other Arab Persian Gulf states.
Pakistan provides military personnel to strengthen Gulf state defenses
and to reinforce its own security interests in the area.  Nevertheless,
Pakistan pursues an active diplomatic relationship with Iran.

US-PAKISTAN RELATIONS
 The United States and Pakistan established diplomatic relations in
1947.  With the US agreement to provide economic and military aid in
1954 and Pakistan's participation in the Baghdad Pact/-CENTO and SEATO,
relations between the two nations grew close.  During the 1965
Indo-Pakistani war, however, the United States suspended military
assistance to both sides.  The suspension of aid affected Pakistan much
more severely than it did India and generated a widespread feeling that
the United States was not a reliable ally.  As time passed, relations
gradually improved, and arms sales were renewed in 1975.
 In November 1979, false reports that the United States had participated
in the seizure of the grand mosque in Mecca led to a mob attack on the
US Embassy in Islamabad.  Despite calls for help, the slow reaction of
police authorities allowed time for the embassy to be burned.  Six
persons died, four of them US nationals.  The American cultural centers
in Rawalpindi and Lahore also were destroyed.  Despite an apology from
the Pakistan Government, and its agreement to pay for reconstruction of
the Embassy, relations between the countries reached an all-time low.
At the time of the incident, US assistance to Pakistan also had been
suspended because of concerns about Pakistan's nuclear program.
 The Soviet invasion of Afghanistan in December 1979 highlighted the
common interest of Pakistan and the United States in peace and stability
in South Asia.  In 1981, the bilateral relationship entered a new phase.
 The United States and Pakistan agreed on a multi-year, $3.2-billion
military and economic aid program aimed at helping Pakistan deal with
the heightened threat to security in the region and its economic
development problems.
 Citing overriding national security concerns and accepting Pakistan's
assurances that it was not seeking to construct a nuclear weapon,
Congress waived restrictions (Symington amendment) on aid 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.  Implementation of this program is contingent upon year-by-year
congressional approval, a renewal of the current Symington amendment
waiver, and annual certification by the President that Pakistan does not
possess a nuclear explosive device (the Pressler amendment). As of
October 1, 1990, the US suspended all forms of economic and military
assistance to Pakistan because of concerns about the development of
Pakistan's nuclear program.  Talks continue between the two sides.

Principal US Officials
Ambassador--Nicholas Platt
Deputy Chief of Mission--A. Elizabeth Jones
Defense Representative--Brig. Gen. John Howard
Director, USAID Mission--James Norris
Counselor for Political Affairs--Edward F. Fugit
Counselor for Economic Affairs--Lawrence Benedict
Public Affairs Officer--William R. Lenderking
Consul--Karen M. Stanton
Consul General, Karachi--Richard Faulk
Consul General, Lahore--Laurie Johnston
Consul, Peshawar--Richard Smyth

 The US Embassy is located at the Diplomatic Enclave, Ramna 5, Islamabad
(tel. [92]-(51)-826161 through 79; telex
82-5-864).

Travel Notes
 Visas must be obtained before traveling to Pakistan.  The land border
with India is open to travelers at Wagah (between Lahore and Amritsar)
only on certain days of the week.  India and Pakistan require that all
cars entering at the border be covered by an international Carnet de
Passage.  Four-wheel drive vehicles are recommended for some highways
such as the Karakoram Highway, connecting Pakistan with China through
the Khunjerab Pass.  Travelers on this route must obtain visas and make
arrangements through local authorities.  Travelers should note travel
advisories, especially warnings about travel in rural Sindh. (###)


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