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Pakistan
FOREIGN ECONOMIC RELATIONS
Foreign Aid
Since independence Pakistan has had to depend on foreign assistance
in its development efforts and to balance its international debt
payments. In 1960 the World Bank organized the Aid-to-Pakistan
Consortium to facilitate coordination among the major providers
of international assistance. The consortium held 92 percent of
Pakistan's outstanding disbursed debt at the end of June 1991.
The consortium's members include the United States, Canada, Japan,
Britain, Germany, France, and international organizations such
as the World Bank and the Asian Development Bank (ADB). The World
Bank accounted for 26 percent of the outstanding debt, and the
ADB, which was the largest lender in the early 1990s, accounted
for 15 percent. Most nonconsortium funding comes from Saudi Arabia
and other oil-producing Middle Eastern countries. Most aid is
in the form of loans, although the proportion of grants increased
from around 12 percent in the late 1970s to around 25 percent
in the 1980s, mainly because of food aid and other funds directed
toward Afghan refugees. With the decline in this aid after 1988,
the proportion of grants decreased to 16 percent in FY 1992.
The United States has been a major provider of aid since independence
and was the largest donor in the 1980s (see Foreign Policy , ch.
4). All United States military aid and all new civilian commitments,
however, ended in October 1990 after the United States Congress
failed to receive certification that Pakistan was not developing
a nuclear bomb. As of early 1994, United States aid had not resumed,
but Agency for International Development projects already under
way in October 1990 continued to receive funds (see The Armed
Forces in a New World Order , ch. 5).
Data as of April 1994
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