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U.S.-Pakistan Addressing Economic Shortfalls in the Early Years

  • U.S.-Pakistan Addressing Economic Shortfalls in the Early Years

In the first few days following the establishment of Pakistan, the country was confronted with a shortage of essential infrastructure and economy. To ease the burden of these massive issues and to build an adequate infrastructure, it was a dire need for aid in the form of money. Two superpowers were in existence at the time. The world witnessed the disasters during World War 2 and was going through the first period of the cold war. The American states were reshaping as new nations independent of the US developed. America and the Soviet Union were wooing these emerging nations to join their block. The relationship and cooperation between the United States and Pakistan started through these motives. This collaboration grew in pace for three reasons, one of which was the review of the military's role by Ayub, and the third was the occurrence of the Korean conflict. The third factor was the change in the regime of the American Administration. This administration tended to be more abrasive toward communism, allowing for more aggressive containment policies. These policies became the norm of cooperation between Pakistan and the United States.

 Drew closer, high-level visits were established between the two nations. In this case, an agreement was signed between the two countries in March 1959. This allowed military aid to Pakistan. Both nations agreed to "appropriate actions" that included the use of forces if mutually agreed on . . . to aid to assist the Government of Pakistan at its request". In addition, Pakistan could get military aid but also helped Pakistan's government Pakistan to receive aid and grants. Different government departments also funded many projects. This became the basis of grants and aid that Pakistan remains dependent on. Between 1950 and the early 1960s, Pakistan received enormous aid. Pakistan received over $630 million in direct aid and more than 670 million dollars in the defence sector and other fields.

The signed accord was beneficial in changing the state's infrastructure and helped boost the economy. The initiatives provided an economic base, which led to several ambiguous issues that the country had to face over time. Pakistani government became dependent upon grants and aid from the government of the American state. This dependence continues to be present. The primary purpose behind this policy adopted by the American Administration was to win the Pakistani state into the capitalist bloc. This policy was rooted in the self-interested policies of the American state. The practice of receiving aid that was created is still destroying the economy of Pakistan. The conditions to which the aid amount is tied are continually affecting the nation of Pakistan. Contrary to the agreement of cooperation, this arrangement became the basis for the accord of dependence. For the policy on foreign affairs of Pakistan, this dependence on aid hinders the economy's growth.