Immediately after the inception of Pakistan the country was faced with shortage of economic and basic infrastructure. To minimize these gigantic problems and to provide with a basic infrastructure the country was in need of assistance in form of money. There were two superpowers at that time. The world just had witnessed catastrophe of World War 2 and was passing through the initial phase of cold war era. The states were disintegrating and new independent nations were emerging. The America and Soviet Union were wooing these emerging –and other third world countries- towards their own block. From this era and through these motives the partnership and cooperation between United States and Pakistan started. This cooperation got pace due to three factors: first was the reassessment of military by Ayub : the second was the phenomenon of Korean war : and the third was the regime change in the American Administration. The new administration was more bellicose towards the communism and this gave pace to containment policy. These became the hallmark of cooperation between Pakistan and United states.
As Pakistan and United States drew closer the high-level visits initiated between the two countries. In this scenario an agreement took place between two countries in March, 1959. This enabled the military assistance to Pakistan. The two countries agreed “appropriate action, including the use of armed forces, as may be mutually agreed upon . . . in order to assist the Government of Pakistan at its request”. Not only Pakistan was able to get military assistance but it also enabled the government of Pakistan to get grants and aid packages. Various projects were also funded in different sectors of government. In effect this became the foundation of aids and grants to which Pakistan is still dependent. In the 1950s and early 60s Pakistan was provided with huge amount of aid. Pakistan got more than 630 million dollars in direct assistance and more than 670 million in defense and other sectors. The agreement which took place was helpful in altering the basic infrastructure of state and helped to boost the economy. The projects initiated gave a base to the economy and in the long run this created enigmatic problems for the state. Pakistani government became dependent on the aid and grants by the American state. Still this dependence is continuing. The basic purpose of this policy by American Administration was to win the Pakistani state in the capitalist block. The policy had its origin in the self interested policy of American state: and the habit of getting aid which was developed is still spoiling the economic state of Pakistan. The condition with which this aid amount is attached is continuously harming the state of Pakistan. In contradiction with agreement of cooperation, this agreement became the basis of agreement of dependence. In the foreign policy of Pakistan this aid dependence is a hindrance on the development of economy.