	Congressional Interest

Pakistan is a key front-line ally in the U.S.-led anti-terrorism coalition, and the BushAdministration has expressed satisfaction with ongoing Pakistan-U.S. cooperation in this area. Trade-related legislation may again arise, especially in the area of textile duties. The United States andPakistan now share pressing interests in the region. The United States continues to make large aid donations to Pakistan and to support thatcountry's interests in negotiations with international financial institutions. Yet there areconcerns that 2002 national elections in Pakistan were not sufficiently free and open by Westernstandards and that the military-dominated government in Islamabad intends to remain in powerthrough manipulation of constitutional and democratic processes. This possibility has led someMembers of Congress to seek the renewal of aid restrictions until such time that a more robustdemocratic process is sustained and a civilian-led government is effectively in place. There isalso possibly growing anti-American sentiment in Pakistan, and the potential "re-Talibanization" ofthat country's western provinces bordering Afghanistan could lead to a reduction of Pakistan-U.S.cooperation in counterterrorism efforts, thereby harming U.S. interests in the region. (16) 
It was reported that, following Pakistan's October 2002 elections and the ascension of anIslamist coalition there, U.S. officials presented to the Islamabad government three policy priorities:1) a preference that the Islamists not be included in the ruling national coalition; 2) that provincialgovernments being run by Islamist politicians not be allowed to interfere with ongoing anti-terroroperations involving U.S. personnel; and 3) that the basic understanding between the United Statesand Pakistan -- agreed to between Secretary of State Powell and President Musharraf on September14, 2001, and guaranteeing full Pakistani cooperation with the U.S.-led anti-terror campaign -- "mustcontinue unhindered." (17) 
This report reviews the current status of Pakistan-U.S. anti-terrorism cooperation in the areasof law enforcement, intelligence, and military operations. U.S. arms transfers to and securitycooperation with Pakistan are also discussed. A following section addresses the major domesticrepercussions of Pakistan-U.S. counterterrorism efforts, the ways in which such efforts are perceivedby newly-empowered Pakistan Islamists and their followers, and the possible effects these dynamicsmay have on future Pakistan-U.S. cooperation in this realm. The final section assesses the overallstatus of Pakistan-U.S. anti-terrorism cooperation and key points of U.S. concern. (20) 
American military successes in Afghanistan in the final months of 2001 apparently ended theexistence of Al Qaeda as a coherent entity in that country. database in order to track themovements of Islamic militants. Differences over weapons proliferation and human rights violations could triggerfar-reaching restrictions on future U.S. aid to Pakistan.
Pakistan is a key front-line ally in the U.S.-led anti-terrorism coalition. After September2001, Pakistani President Musharraf ended his government's ties with the Taliban regime ofAfghanistan and has since cooperated with and contributed to U.S. efforts to track and captureremnants of Al Qaeda and Taliban forces that have sought refuge inside Pakistani territory. Pakistan's cooperation has been called "crucial" to past and ongoing U.S. successes in the region, butthere is growing concern that the bilateral relationship is fragile and may be undermined bypotentially disruptive developments in the areas of weapons proliferation, democracy-building, andPakistan-India relations.
Remaining proliferation- and democracy-related aid restrictions on Pakistan were removedin the final months of 2001, and the United States continues to make large aid donations to Pakistanand to support that country's interests in negotiations with international financial institutions. Thereare concerns that October 2002 national elections in Pakistan were not sufficiently free and open byWestern standards and that the military-dominated government in Islamabad intends to remain inpower through manipulation of constitutional and democratic processes. This possibility led someMembers of the 107th Congress to seek the renewal of aid restrictions or a modification of thePresident's waiver authority until such time that a more robust democratic process is sustained anda civilian-led government effectively is in place. There also is concern that possibly growinganti-American sentiment in Pakistan and the potential "re-Talibanization" of that country's western provinces bordering Afghanistan could adversely affect U.S. interests in the region.
During 2002, the United States took an increasingly direct, if low-profile, role in both lawenforcement and military operations being conducted on Pakistani territory. These operations haveled to favorable results in tracking and apprehending dangerous Islamic militants, but the activitiesof U.S. personnel in the country have led to increasing signs of anti-American backlash and Pakistanisovereignty concerns. Recent electoral gains by a coalition of Pakistani Islamist political parties areviewed as an expression of such sentiments that may lead to reduced Pakistan-U.S. cooperation incounterterrorism operations in the future. The civilian Parliament and Prime Minister that wereseated in Islamabad in November 2002 may powerfully influence the course and scope of future U.S.presence in the region.
This report reviews the status of Pakistan-U.S. anti-terrorism cooperation in the areas of lawenforcement, intelligence, and military operations. U.S. arms transfers to and security cooperationwith Pakistan are also discussed. A following section addresses the major domestic repercussionsof Pakistan-U.S. counterterrorism efforts, the ways in which such efforts are perceived bynewly-empowered Pakistan Islamists and their followers, and the possible effects these dynamicsmay have on future Pakistan-U.S. cooperation in this realm. The final section assesses the overallstatus of Pakistan-U.S. anti-terrorism cooperation and key points of U.S. concern. Broaderdiscussion of bilateral relations and relevant legislation is found in CRS Issue Brief IB94041, Pakistan-U.S. Relations . This report will be updated periodically.