In-depth Report On US Sanctions On Pakistan

On December 18, 2024, the United States imposed new sanctions targeting Pakistan’s ballistic missile program. These measures affect the National Development Complex (NDC), a state-owned defense agency responsible for developing the Shaheen series of ballistic missiles, and three Karachi-based companies: Affiliates International, Akhtar and Sons Private Limited, and Rockside Enterprise. The sanctions freeze any U.S. assets of these entities and prohibit American businesses from engaging with them

The United States has imposed 9 major sanctions on Pakistan since 1965, targeting its military, economic, and strategic programs, with a cumulative financial impact exceeding $25 billion, reflecting concerns over nuclear proliferation, regional security, and counterterrorism efforts.

. These measures include military and economic embargoes under the Symington and Pressler Amendments, sanctions following Pakistan’s nuclear tests in 1998 under the Glenn Amendment, and restrictions on entities associated with Pakistan’s defense and nuclear activities. Each sanction aimed to deter Pakistan’s strategic advancements, but the effectiveness has been debated, given Pakistan’s ability to circumvent these through alternate alliances and domestic efforts. The latest sanctions targeting its ballistic missile program are a continuation of this longstanding strategy.

Here’s a detailed breakdown of each sanction, its context, impact on Pakistan, and its estimated financial worth:

1. 1965 Military Sanctions

• Reason: Pakistan’s use of U.S.-supplied military equipment in the Indo-Pak War.
• Impact on Pakistan: Military aid was cut off, forcing Pakistan to diversify its defense partnerships, notably with China and France. The U.S. was perceived as an unreliable ally.
• Worth: Estimated at $30-50 million in lost annual military aid.

2. 1971 Military Sanctions

• Reason: Human rights violations during the East Pakistan crisis.
• Impact on Pakistan: Limited direct impact as the U.S. continued covert military supplies via third parties (e.g., Iran and Jordan). However, the embargo pushed Pakistan further toward developing an independent defense industry.
• Worth: Minimal immediate financial impact due to illegal aid routes but symbolic damage to U.S.-Pakistan ties.

3. 1977 Symington Amendment

• Reason: Pakistan’s pursuit of a French nuclear reprocessing plant deal.
• Impact on Pakistan: Economic and military aid was officially terminated, although food aid and some financial assistance continued. Pakistan accelerated its nuclear program using alternative routes.
• Worth: $50 million annually in suspended aid, though offset by ongoing food programs.

4. 1979 Glenn Amendment

• Reason: Pakistan’s continued nuclear weapons development at Kahuta.
• Impact on Pakistan: Comprehensive economic and military aid bans. However, Pakistan’s ties with China grew stronger, providing an alternative to U.S. assistance.
• Worth: $40 million in withheld aid plus additional restrictions.

5. 1990 Pressler Amendment

• Reason: Suspension of aid after President Bush could not certify that Pakistan’s nuclear program was peaceful.
• Impact on Pakistan: Military and economic aid, including the delivery of 38 F-16 fighter jets, was suspended. This created a severe dent in Pakistan’s defense modernization.
• Worth: $564 million in frozen aid for fiscal year 1991 alone, with long-term losses exceeding $1 billion.

6. 1998 Glenn and Symington Amendments Re-enacted

• Reason: Pakistan’s nuclear tests in response to India’s nuclear tests.
• Impact on Pakistan: Suspension of nearly all U.S. aid and international loans, exacerbating economic challenges. However, most sanctions were lifted within a year due to strategic needs post-9/11.
• Worth: $1.5 billion in aid and loans suspended.

7. 1999 Military Coup Sanctions

• Reason: General Pervez Musharraf’s military coup.
• Impact on Pakistan: Economic and military aid was curtailed. However, the sanctions were quickly waived under the Brownback Amendment due to the U.S. war in Afghanistan.
• Worth: Estimated at $300 million in temporarily withheld aid.

8. 2017-2018 Counterterrorism Sanctions

• Reason: Allegations of Pakistan’s insufficient action against terrorist groups such as the Haqqani Network and Taliban.
• Impact on Pakistan: Suspension of $255 million in military aid and $350 million in conditional defense appropriations. Pakistan faced reputational damage and reduced foreign support.
• Worth: $605 million in withheld aid.

9. 2018 FATF and Financial Sanctions

• Reason: Alleged links to money laundering and terrorism financing.
• Impact on Pakistan: Placement on the FATF grey list led to financial restrictions, increased borrowing costs, and reduced foreign investments.
• Worth: Direct and indirect losses estimated at $10 billion.

10. 2024 Ballistic Missile Program Sanctions

• Reason: Pakistan’s development of long-range ballistic missiles.
• Impact on Pakistan: Sanctions on the National Development Complex (NDC) and affiliated companies, freezing U.S. assets and banning American engagements. Pakistan criticized the move as discriminatory.
• Worth: Immediate financial impact is uncertain, but it affects defense-related imports and global collaboration.

Financial Impact

The cumulative financial impact of U.S. sanctions on Pakistan, directly and indirectly, spans billions of dollars. Some sanctions (like FATF measures) created long-term economic pressures, while others (like military sanctions) forced Pakistan to diversify its partnerships. Over time, the U.S. has used sanctions both as a tool of strategic deterrence and a means to shape Pakistan’s foreign policy priorities, with mixed results. The cumulative financial impact of U.S. sanctions on Pakistan since 1965 is estimated to exceed $25 billion, considering direct aid losses, halted military sales, reduced investments, and reputational damages.

Pakistan’s Response to the US Sanctions:

While these sanctions have imposed significant financial costs, they have not achieved their primary objectives of curbing Pakistan’s nuclear ambitions or altering its strategic behavior. Thus, Pakistan’s response to U.S. sanctions has been shaped by a combination of strategic diplomacy, diversification, and self-reliance. The country has consistently criticized these sanctions as unfair and discriminatory, leveraging its pivotal geopolitical location to maintain and expand strategic relationships. By positioning itself as an indispensable partner in regional security, particularly during the Cold War and the War on Terror, Pakistan has sought to counterbalance the impact of U.S. restrictions while cultivating new alliances.

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Diversification has been a cornerstone of Pakistan’s strategy, with the country strengthening defense and economic ties with nations such as China, France, and the Gulf States to reduce reliance on American aid. At the same time, sanctions often served as a catalyst for self-reliance, pushing Pakistan to accelerate its nuclear and missile programs and enhance indigenous defense capabilities. Domestically, anti-U.S. narratives were deployed to garner public support for government and military policies, framing these sanctions as part of a larger struggle for sovereignty and self-determination. While U.S. sanctions undoubtedly strained Pakistan’s economy and military operations, the country has historically adapted, using these challenges to foster alternative alliances and bolster its resilience on the global stage.