Pakistan had the opportunity to receive substantial aid from the US during the Soviet invasion of Afghanistan in 1979 by offering its territory as a base, but it did not benefit financially during the Iran war. Initially offered $400 million, Pakistan rejected it as insufficient, eventually agreeing to a $3.2 billion aid package in 1981.
Throughout the 1980s, Pakistan received significant financial support, with total inflows amounting to $20-27 billion in today’s dollars. However, post-9/11, the dynamics shifted, with the US providing around $45 billion in military and economic aid during Gen Pervez Musharraf’s tenure.
By 2026, Pakistan found itself in a different position, with a significant outflow of $5.7 billion due to the ongoing conflict. This contrasted with the past, where wars brought in substantial aid, highlighting a shift towards strategic risks and financial challenges for the country.
