i COOPERATION AND CONFRONTATION IN PAKISTAN-UNITED STATES RELATIONS DURING PERVEZ MUSHARRAF ERA A THESIS SUBMITTED TO FACULTY OF ARTS AND HUMANITIES UNIVERSITY OF THE PUNJAB IN CANDIDACY FOR THE FULFILLMENT OF DOCTOR OF PHILOSOPHY By SALMA IQBAL PAKISTAN STUDY CENTRE UNIVERSITY OF THE PUNJAB LAHORE 2016 ii DECLARATION I, Salma Iqbal, hereby declare that this thesis submitted in fulfillment of requirements for the awards of Doctor of Philosophy in Pakistan Studies, University of the Punjab, is wholly my personal research work unless otherwise referenced or acknowledged. The thesis has not been submitted concurrently to any other university for any other degree. ____________ Salma Iqbal Roll No. 01 iii CERTIFICATE BY RESEARCH SUPERVISOR This is to certify that the research work described in this thesis is the original work of the author and has been carried out under my direct supervision. I have personally gone through all the data reported in the manuscript and certify their correctness/authenticity. I further certify that the material included in this thesis has not been used in part or full in a manuscript already submitted or in the process of submission in partial/complete fulfillment of the award of any other degree from any other institution. I also certify that the thesis has been prepared according to the prescribed format and I endorse its evaluation for the award of Ph. D. degree through the official procedures of the University. ____________________ Prof. Dr. Massarrat Abid iv Certificate of Approval This is to certify that the research work presented in this thesis, entitled “Cooperation and Confrontation in Pakistan United States Relations During Pervez Musharraf Era.” was conducted by Mrs. Salma Iqbal under the supervision of Prof. Dr. Massarrat Abid. No part of this thesis has been submitted anywhere else for any other degree. This thesis is submitted to the Pakistan Study Centre, University of the Punjab, Lahore. in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Field of Pakistan- Studies Department of: Pakistan Study Centre, University of the Punjab, Lahore. Student Name: Salma Iqbal Signature: __________ Examination Committee: a) External Examiner 1: Name Signature:___________ (Designation & Office Address) Dr. Humaira Dar Assistant Professor, Department of Political Science, Government College for Women University, Sialkot-Pakistan Supervisor Name: Prof. Dr. Massarrat Abid Signature: ____________ Name of Dean/HOD: Prof. Dr. Massarrat Abid Signature: _____________ Director Pakistan Study Centre, University of the Punjab, Lahore. v DEDICATION I dedicate this work to my Teachers and Family in particular to my Father who helped me for completion of this research work. vi Abstract The study analyzes Pakistan-United States relations, which are a combination of confrontation and cooperation. Since independence, the relations between the two States have seen many ups and downs. The purpose of this research is not only to provide an exhaustive historical account of the relations; it also aims at interpreting cooperation and confrontation between the two countries in the broader sense during Musharraf era. The research has focused on how the two countries reached various formal agreements, how the official dialogues were conducted on major issues of bilateral interest, and what impacts it had on the relationship between the two nations. It has also been enquired how the United States policy towards Pakistan changed from confrontation to cooperation after 9/11 attacks. It has also encompassed the economic dependence of Pakistan on the US aid, its social sector’s developments and the need for the US military aid for the balance of power in the region and Pakistan’s national security. The consequences and backlash on Pakistan economy, socio-religious life, and overview of the country’s law and order situation, suggestions to reduce the atmosphere of mistrust and way forward to improve the Pakistan-US relationship between the two independent-sovereign states has also been part of the analysis of the relations. This study includes details regarding the cooperation between the two countries, eradicating terrorism, improving socio-political situation in Afghanistan, removing major irritants between the two countries. Moreover, it considers Pakistan’s response to the situation in Afghanistan, steps taken by Pakistan and the US to resolve the crisis and the consequences, for Pakistan, for becoming an ally of the United States in the war on terrorism. Furthermore, it has also discussed why Pakistan’s decision to vii provide logistic and intelligence assistance to the US in the war on terrorism was a precautionary measure against being labelled as a terrorist state and an ally of the Taliban by the US. The research has endeavored to carry out an in depth study of Pakistan-US relations and their impact on the policies of both countries. It has also studied the issues relating to some irritants and confrontation between the two countries. viii COOPERATION AND CONFRONTATION IN PAKISTAN-UNITED STATES RELATIONS DURING PERVEZ MUSHARRAF ERA CONTENTS Title Page No. Declaration ii Certificate by the Research Supervisor iii Certificate of Approval iv Dedication v Abstract vi Contents viii Acknowledgements x Abbreviations xii List of Tables xvii INTRODUCTION 1-22 1. PAKISTAN UNITED STATES RELATIONS: A HISTORIC SURVEY (1947-99) 23-63 1.1. United States Policies towards Pakistan 1947-99 23 1.2. Cooperation and Confrontation in Pakistan and United States Relations in the field of Military and Defense 1947-1999 32 1.3. Socio-Economic Cooperation within Pakistan United States Relations 46 1.4. Pakistan United States Relations and Regional Perspective 1947-99 51 1.5. Specific United States Legislations against Pakistan 60 2. PERVEZ MUSHARRAF’S PAKISTAN AND UNITED STATES POLICIES TOWARDS PAKISTAN: AN OVERVIEW OF RELATIONS 64-100 2.1. The US Policies towards Pakistan 2001-2008 66 ix 2.2. The United Nations and World Community’s Response towards 9/11 73 2.3. Pakistan’s Cooperation and US Response 76 2.4. US Policy towards Pakistan on the Issue of Kashmir 84 2.5. Impact of the US Policies in different fields 88 2.6. Change in Pakistan’s Policies 95 2.7. Osama bin Laden views and Policies towards the US 98 3. PAKISTAN UNITED STATES RELATIONS: THE DEFENCE AND MILITARY TIES (1999-2008) 101-134 3.1. Military Assistance Programs 108 3.2. Military Support to US from Pakistan 116 3.3. Divergence/Confrontation between Pakistan and US 119 3.4. Actions Taken by Pakistan (Post 9/11) 122 3.5. Pakistan–US Strategic Cooperation: An Overview 124 4. SOCIO-ECONOMIC DEVELOMENT OF PAKISTAN AND THE UNITED STATES SUPPORT 135-170 4.1. Bilateral Economic Assistance 136 4.2. Socio Economic Relations of Pakistan and United States after 9/11 144 4.3. The International Monetary Fund (IMF), War on Terrorism and Pakistan 160 4.4. The United States courted Pervez Musharraf with economic rewards 162 4.5. Sanctioned waived and Economic aid 2001-2007:an Overview 167 5. PAKISTAN UNITED STATES AND THE REGIONAL PERSPECTIVES 171-205 5.1. Pakistan United States and Afghanistan in the Regional Perspective 173 5.2. Pakistan United States and China in the Regional Perspective 185 5.3. Pakistan United States and India in the Regional Perspective 195 5.4. Causes to Cooperate United States regarding Regional Relations 209 CONCUSION 206-219 APPENDICES 220-264 BIBLIOGRAPHY 265-307 x Acknowledgement I first of all, thank Allah Who, in unbounded grace and mercy, helped and gave me strength to complete this dissertation successfully. I am fortunate to receive cooperation from my teachers, friends and family, without their support and good wishes; I would not have been able to complete my work. I wish to express my gratitude to my supervisor, Prof Dr. Massarrat Abid, Director Pakistan Study Centre, and former Dean of Arts and Humanities, University of the Punjab, Lahore, whose wisdom and scholarly rigor inspired and sustained me throughout this research. I am greatly indebted to Prof Dr. S. Qalb-i-Abid Dean of Arts and Humanities, Concordia colleges, Lahore for providing me an atmosphere for research. I am equally indebted to my respected teachers Prof Dr. Hassan Askari Rizvi, Prof Dr. Farhat Mehmud, Prof Dr. Farooq Hasnat. I profited greatly from their suggestions, their encouraging response was most valuable for me. I take this opportunity to extend my heartiest gratitude to respectable renowned scholars Prof. Dr. Pippa Virdee from De Montfort University, United Kingdom, Prof. Dr. Agnieszka Kuszewska, University of Social Sciences and Humanities, Poland and Prof. Dr. Bettina Robotka of Institute of Asian and African Studies, Humboldt University of Berlin, Germany, their guidance, support and mentorship facilitated me in completing of research. I would also like to extend my thanks to Prof. Dr. Nazir Ahmad, Head of the Department International Relations, Quaid-e-Azam University Islamabad, Prof. Dr. Moonis Ahmar, Head of the Department of International Relations & Dean Faculty of Social Sciences, University of Karachi, Mr. Ahmad Awais Former President Lahore Bar Association, Ambassador Masood Khan who provided guidance during my xi research. I am grateful to Dr. Amjad Abbas Khan and Dr. Ahmad Ejaz Assistant Professors, Pakistan Study Centre, and Dr. Fraz Anjum, Department of History, University of the Punjab, Lahore for their suggestions. I would like to extend my thanks to Higher Education Commission who awarded me scholarship which facilitated me in completion of my research. It would be unjust on my part if I do not thank the Staff of National Documentation Centre Islamabad, National Archives Islamabad, United States Embassy Islamabad, Punjab Archives Lahore, Punjab Public Library Lahore, Jinnah Library Lahore, and Library of Pakistan Study Centre and the main Library of the University of the Punjab, Lahore. The staffs of these libraries were always willing to locate the required material for me. I am also thankful to my Grandfather, Naim-ud-Din Shah, my father, Muhammad Iqbal Hussain Shah, my mother, Zahida Parveen, uncle, Muhammad Irshad Hussain Shah and Muhammad Iftikhar Hussain Shah and other members of my family.