A brief listing of major arms sales and grants made to Pakistan since 2001.

This report discusses Pakistan's efforts to produce fissile material and other issues related to nuclear proliferation and improving its nuclear arsenal. It also discusses the steps Pakistan has taken to increase international confidence in its nuclear security. However, continued instability in Pakistan has caused some to question the effectiveness of its nuclear security reforms. The report addresses these issues as well, in addition to the U.S.-Pakistan relationship as it regards nuclear policy.

Pakistan - a key U.S. ally in global efforts to combat Islamist militancy - is in urgent need of an estimated $4 billion in capital to avoid defaulting on its sovereign debt. The elected government of President Asif Ali Zardari and Prime Minister Yousaf Raza Gillani is seeking short-term financial assistance from a number of sources, including the International Monetary Fund (IMF), China, and an informal group of nations (including the United States) known as the "Friends of Pakistan." The current crisis has placed some strain on U.S.-Pakistan relations.

In October 2002, the United States confronted North Korea about its alleged clandestine uranium enrichment program. Soon after, the Agreed Framework collapsed, North Korea expelled international inspectors, and withdrew from the Nuclear Nonproliferation Treaty (NPT). U.S. intelligence officials claimed Pakistan was a key supplier of uranium enrichment technology to North Korea, and some media reports suggested that Pakistan had exchanged centrifuge enrichment technology for North Korean help in developing longer range missiles.