	Introduction

On June 28, 2006, the Bush Administration announced its proposal to sell 36 F-16 C/D Block50/52 Falcon combat aircraft to Pakistan at an estimated case value of $3 billion. Three other F-16related sales to Pakistan were also proposed on June 28. (1) Some believe that these salesare partly an effort to reward the Pakistani Government for the role it has played in support ofU.S.-led anti-terrorism efforts, and this consideration is noted in the text of the formal notificationof the F-16 sales. U.S. Combat Aircraft

The F-16 Falcon is a single engine multi-role aircraft manufactured by Lockheed MartinCorp. Its relatively low cost and high versatility make the F-16 one of the most exported fighteraircraft in the world. The F-16 was first fielded in 1979 and has been upgraded significantly. Thecapabilities of the F-16 vary greatly depending on the upgrade or modification fielded. The mostmodern F-16 flown by the United States is the Block 50/52. Potential Implications

		Political Implications

It is currently unclear what long-term effects a potential sale of combat aircraft to South Asiamight have on U.S. political relations with Pakistan and India, or the political relationship betweenthem. (10) 
Some analysts see the decision to resume F-16 sales to Pakistan as disruptive of regionalstability and efforts to resolve disputes there. (15) 

		Military Implications

The importance of the proposed transfer of new F-16s and the upgrade of Pakistan's legacyF-16s can be viewed in the context of Pakistan's conventional military confrontation with India, itsnuclear confrontation with that country, and its struggle with terrorists and insurgents. (21) 

		Combat Aircraft Proliferation

Combat aircraft are considered "essential for conducting surprise attacks or initiatinglarge-scale offensive operations." (22) Therefore, the transfer of combat aircraft can be a significantpolicy decision, especially to a region with known tensions and territorial disputes. (23) 
The reported U.S. willingness to sell F-16s or F/A-18s to India may mitigate that country'sdisappointment with any renewed U.S. arms sales to Pakistan and neutralize any increase inPakistan's military capability. (24) 

		U.S. Industrial Base

Much of the commentary following the June 28th announcement centered on how a potentialsale of aircraft to Pakistan, and possibly to India, would be beneficial to industry. The potentialbenefits most frequently mentioned were extending the production life of U.S. aircraft with limiteddomestic prospects and improving U.S. industry's position vis-a-vis other rivals in an increasinglycompetitive military export market.
On June 28, 2006, the Bush Administration announced its proposal to sell 36 F-16 C/D Block50/52 Falcon combat aircraft to Pakistan at an estimated case value of $3 billion. The F-16 Falcon is a single engine multi-role aircraft manufactured by Lockheed Martin Corp. Its relatively low costand high versatility make the F-16 one of the most exported fighter aircraft in the world. The F-16was first fielded in 1979 and has been upgraded significantly. The capabilities of the F-16 varygreatly depending on the upgrade or modification fielded. The most modern F-16 flown by theUnited States is the Block 50/52. Three other F-16 related sales to Pakistan were also proposed.
Some believe that these sales are partly an effort to reward the Pakistani Government for therole it has played in support of U.S.-led anti-terrorism efforts, and this consideration is noted in thetext of the formal notification of the F-16 sales. Some analysts, however, see the decision to resumeF-16 sales to Pakistan as disruptive of regional stability and efforts to resolve disputes there.
Combat aircraft are considered "essential for conducting surprise attacks or initiatinglarge-scale offensive operations." Therefore, the transfer of combat aircraft can be a significantpolicy decision, especially to a region with known tensions and territorial disputes. Generallyspeaking, arguments for foreign military sales tend to focus on advancing U.S. industry, supportingallied countries, and promoting interoperability with those countries. Arguments against arms salestend to focus on the negative aspects of military technology proliferation and the potential forcausing regional instability. The federal government approves arms sales on a case-by case basis.
It is currently unclear what long-term effects a potential sale of combat aircraft to South Asiamight have on U.S. political relations with Pakistan and India, or the political relationship betweenthem. The reported U.S. willingness to sell F-16s or F/A-18s to India may mitigate that country'sdisappointment with any renewed U.S. arms sales to Pakistan and neutralize any increase inPakistan's military capability.
Militarily, the importance of the proposed transfer of new F-16s and the upgrade of Pakistan's legacyF-16s can be viewed in the context of Pakistan's conventional military confrontation with India, itsnuclear confrontation with that country, and its struggle with terrorists and insurgents.
Much of the commentary following the June 28th announcement centered on how a potentialsale of aircraft to Pakistan, and possibly to India, would be beneficial to industry. The potentialbenefits most frequently mentioned were extending the production life of U.S. aircraft with limiteddomestic prospects and improving U.S. industry's position vis-a-vis other rivals in an increasinglycompetitive military export market. For broader discussion, see CRS Report RL33498 , Pakistan-U.S. Relations , and CRS Issue Brief IB93097, India-U.S.-Relations .This report willbe updated as events warrant.