This report documents major events that occurred recently in the country of Pakistan. It also reflects on Pakistan's evolving relationships with the United States and with neighboring countries. Sources include Pakistani news outlets, U.S. government reports, and international resources. Listed below, in chronological order, are significant events that took place in or affected Pakistan or involved Pakistan's relations with the United States or neighboring countries, such as Afghanistan, India, Iran, or China. This report covers events from March 26 through June 21, 2007. For a list of the acronyms used in this report, please refer to the Appendix . 03/26/07 —Pakistani security forces in Baluchistan discovered and freed three Iranian policemen who had been abducted on February 27. A fourth policeman had been killed. On the same day, local government officials, tribal elders, and pro-Taliban militants in Bajaur signed a peace deal. Government officials promised not to make arrests without conferring with tribal elders, while tribesmen and militants pledged not to shelter foreign militants or allow "subversive" activities. Also, the Supreme Court of Pakistan directed the attorney general to submit information by April 10 on the whereabouts of "hundreds of people" taken into official custody. 03/27/07 —Unidentified gunmen attacked and killed four officials of the Inter-Services Intelligence. Subsequently, 11 people were arrested for involvement in the attack. On the same day, it was reported that the United Nations High Commissioner for Refugees had repatriated 28,000 Afghans from Pakistan thus far in 2007. Also, thousands of political opposition members protested peacefully in Lahore and Karachi to denounce the suspension of the chief justice. 03/28/07 —Authorities placed an indefinite curfew on the Tank district in the North-West Frontier Province (NWFP) after at least five people were killed and two were abducted within three days during clashes between Pakistani troops and alleged Taliban militants. Shops and businesses were closed. 03/29/07 —In an interview with The New York Times , Afghan President Hamid Karzai stated that he received "almost daily" reports of suicide bombers coming into Afghanistan from Pakistan. Karzai said he believes the Pakistani government does not want his government to succeed. On the same day, a suicide bomber blew himself up at an army base near Kharian in Punjab province, killing one soldier and injuring six or seven others. 03/30/07 —The State Bank of Pakistan projected a GDP growth rate of 6.6% to 7.2% for FY2007, with an average inflation rate of 6.7% to 7.5%. This inflation rate is higher than the annual target but "substantially lower relative to the preceding year." 03/31/07 —Fresh fighting in South Waziristan Agency killed an estimated 56 to 200 pro-government elders and foreign militants over the past week. Reportedly, Mullah Dadullah arrived in the area to negotiate a peace deal. Also, Commander of U.S. Central Command Admiral William J. Fallon met with Pakistani President Pervez Musharraf to discuss the situation in Afghanistan. 04/01/07 —Pakistani security forces carried out operations against farari camps (rebel bases) in Baluchistan arresting 45 insurgents, seizing land mines, arms, and ammunition, and destroying hideouts. One security official was killed. 04/02/07 —Two people died and nine were injured when two religious groups exchanged gunfire in the Khyber tribal agency in the Federally Administered Tribal Areas (FATA). On the same day, an all-tribes jirga in the city of Tank pledged to support the government. Also, the 2007 National Trade Estimate Report on Foreign Trade Barriers noted that Pakistan made progress in 2006 toward improving copyright enforcement but still does not sufficiently protect all intellectual property. This shortage of safeguards remains a serious obstacle to trade and investment. 04/03/07 —Pakistani President General Pervez Musharraf met with three U.S. congressional delegations led by Representative Silvestre Reyes, Representative John Tierney, and Senator John McCain. Musharraf reportedly told the delegations that "security along the Pak-Afghan border is a joint responsibility of Pakistan, Afghan and coalition forces in Afghanistan." Also, a tribal army of up to 3,000 volunteers gathered to support a pro-government militant commander in South Waziristan tribal agency in the FATA to drive out Uzbek and Chechen militants and local sympathizers reportedly linked to al Qaeda. Over the past month, up to 250 people, mostly foreigners, died in the fighting. 04/04/07 —ABC News reported that "U.S. and Pakistani government sources" claim the United States "has been secretly advising and encouraging a ruthless militant group" from Baluchistan that declared responsibility for the February attack in Iran that killed 11 Revolutionary Guards. On the same day, Pakistan's Foreign Office refuted the "tendentious ABC News Report ... and the absurd and sinister insinuation that Pakistan was part of a 'secret campaign' against Iran." Also, the Supreme Court indicted seven police officers and district management officials for "grossly manhandling" Chief Justice of Pakistan Iftikhar Muhammad Chaudhry on March 13, 2007. The chief justice was suspended and charged with misconduct and misuse of authority by Pakistani President Musharraf on March 9, 2007. 04/05/07 —Dr. Gholam Ali Haddad Adil, speaker of the Iranian Majlis (Parliament), reportedly said during his visit to Islamabad that he did not think Pakistan was supporting any CIA-sponsored group to create instability in Iran. On the same day, the U.S. Department of State's annual Supporting Human Rights and Democracy: The U.S. Record 2006 publication stated that Pakistan's "transition to a full and functional democracy is critical to the strength of our long-term relationship." 04/06/07 —Maulana Mohammad Abdul Aziz, head cleric of Lal (Red) Mosque in Islamabad, announced that he had established a religious court at the mosque to "dispense Islamic justice." He also claimed to have thousands of volunteers willing to commit suicide attacks if the government raided the mosque or did not close down brothels and video stores within a month. On the same day, it was reported that 20 Uzbek and Chechen militants and seven Lashkar tribesmen died in a gunfight in South Waziristan. After the area was cleared of al Qaeda militants, Pakistani army troops moved in, the first to return to the area following troop withdrawal as a condition of the February 2005 peace agreement with local tribes. Also, Aftab Ahmed Khan Sherpao, Pakistan's interior minister, announced that his ministry had located 10 of the people reported missing to the Supreme Court. All 10 had been detained by the governments of the United States or Pakistan. 04/07/07 —Meeting with a congressional delegation led by Representative Nita Lowey, Pakistani President Musharraf reportedly stressed the need for negotiations for a Free Trade Agreement between the two countries. During the meeting, the United States and Pakistan signed a $1 million border management pact that will add 50 platoons to the Frontier Corps to stop the movement of Taliban and al Qaeda insurgents. 04/08/07 —The Human Rights Commission of Pakistan (HRCP) reportedly discussed in its annual general meeting the "dysfunctional government" and other issues. The HRCP issued a statement that said that current conditions indicate "a strong link between state agents and militant groups that are operating in the country with impunity," and that the present system of governance would continue until "unrepresentative organs of the state—the military, the mullah and the all-consuming intelligence agencies—are brought under control and prevented from undermining both the state and the societies." On the same day, fighting between Sunnis and Shias broke out in Kurram tribal agency in the FATA. Reports vary, but at the end of three days, up to 40 people had died and 200 to 300 were injured. Authorities entered into negotiations with tribal elders, and a curfew was imposed. 04/09/07 —Four Pakistani soldiers were killed and two others injured when their truck struck a land mine in Baluchistan. A spokesman for the Baluchistan Liberation Army reportedly claimed the separatist group had used a remote-controlled bomb. On the same day, it was reported that militant groups in the NWFP had kidnapped teenaged boys and trained them in "hatred-based education." Some boys returned home while others participated in extremist attacks in Afghanistan and Kashmir. Also, India's Border Security Force killed six people trying to cross the Line of Control (LOC) from Pakistan into India. 04/10/07 —The Pakistani government blocked the website of the Lal (Red) Mosque for "inciting hate." Also, the Lal (Red) Mosque religious court issued a fatwa against Pakistan's tourism minister, Nilofer Bakhtiar, for un-Islamic behavior after local newspapers printed a photo of a Frenchman giving her a hug. Bakhtiar said it was a "congratulatory pat" following a successful parachute jump. Finally, in a meeting with Pakistani Interior Minister Sherpao, Deputy Assistant Secretary of State John Gastright reportedly said that the prudent policies and "enlightened moderation" of President Musharraf had set Pakistan "on the road to progress." 04/11/07 —Major-General Gul Muhammad, commander of Pakistani army forces in South Waziristan, reportedly said the military blocked all main routes so that Taliban insurgents could not cross into Afghanistan. He also claimed Pakistani tribesmen cleared foreign militants linked to al Qaeda from strongholds in the area. On the same day, Pakistani Prime Minister Shaukat Aziz, speaking at Pakistan's National Defence University, referred to legislation pending in the U.S. Congress and reportedly said that "given the sacrifices that Pakistan has made in the war on terror, any legislation critical of Pakistan would involve a negative public reaction and prove to be counterproductive." 04/12/07 —Four members of an Iranian criminal gang and a Pakistani border security official were killed during a raid on a hideout along the border of Pakistan and Iran. On the same day, Pakistani President Musharraf reportedly announced that tribal fighters in South Waziristan had killed up to 300 foreign militants in a month of fighting. He also said the tribal army had asked for, and received support from, the Pakistani army. Major-General Gul Muhammad said the initiative "was an indigenous movement." Also, a jirga of 20 Sunni and Shia clerics in Kurram tribal agency announced a ceasefire after 55 people died in a week-long battle. 04/13/07 —A Frontier Corps trooper and a Pakistani army soldier died while clearing land mines for a road project in Baluchistan. On the same day, it was reported that any advantages achieved through a record inflow of $13.5 billion in foreign direct investment, remittances from expatriates, and loans would be wiped out by the trade deficit. Also, thousands of protesters in Islamabad supporting Chief Justice Chaudhry burned an effigy of Pakistani President Musharraf and shouted, "Go Musharraf go" and "Stop attacking the judiciary." 04/14/07 —Speaking at a military academy, Pakistani President Musharraf reportedly said, "Pakistan is passing through a difficult stage and a difficult phase. Externally, there is an existence of regional turmoil which has very direct and indirect fallout on the country ... Internally we face the menace of religious extremism, fundamentalism and sectarianism." He told graduating cadets that extremism demanded "a prudent approach." On the same day, it was reported that the Pakistan Atomic Energy Commission had discovered up to 1,000 sites from which uranium could be mined for proposed nuclear power plants. 04/15/07 —Up to 100,000 people rallied in Karachi against the extremist Lal (Red) Mosque, which has unleashed a Taliban-style anti-vice crusade in Islamabad. The rally was organized by the pro-government Muttahida Quami Movement (MQM) political party. On the same day, Pakistani President Musharraf reportedly said the Pakistani military would not work with the United States in "any joint military operation ... against al Qaeda and Taliban militants on the Pakistani side" of the Pak-Afghan border." 04/16/07 —Susan Schwab, the U.S. Trade Representative, met with Pakistan's commerce minister, Humayun Akhtar Khan. It was reported that American concerns for labor and sanitary standards and intellectual property piracy halted negotiations for a bilateral investment treaty. 04/17/07 —During a visit to Beijing, Pakistani Prime Minister Aziz and Chinese Premier Wen Jiabao reportedly signed up to 27 agreements in technology, banking, education, defense, infrastructure, and investment. On the same day, an editorial in the Business Recorder stated that the UK government "provides a much larger volume of economic assistance to Pakistan" than the U.S. government does, giving aid for education, health, and social development programs with "very little noise from the British Parliament or think tanks or even the influential media" that Pakistan is not doing enough in the war on terror. The editorial further said that while the government and population of Pakistan appreciate the assistance received from the United States, "the pundits in the U.S. who believe that they can use the leverage of U.S. official aid to paralyse Pakistan's economy are sadly mistaken as they have an exaggerated sense of the importance of these official flows." 04/18/07 —The president of the Pakistan Chamber of Commerce and Industry noted that Pakistan's economy doubled in the past five years to $135 billion, and that foreign direct investment increased from less than $1 billion three years ago to more than $3.5 billion in the 2005-06 fiscal year. On the same day, Admiral William Fallon, Commander, U.S. Central Command, testified before the House Armed Services Committee that if Osama bin Laden was hiding in the FATA, Fallon could not send soldiers across the border or conduct activities without coming to an agreement specific to the operation with the Pakistani government. Also, Chief Justice Chaudhry filed petitions in the Supreme Court challenging the suspension that Musharraf filed against him and the composition of the five-judge Supreme Judicial Council that will hear the charges. 04/19/07 —Thousands of protesters in Lahore, Islamabad, Karachi, and Peshawar rallied against extremism and denounced the actions of students of madrassas and seminaries affiliated with Lal (Red) Mosque. Asma Jehangir, chairwoman of the HRCP, reportedly said there was a "mullah-military alliance" to exploit Pakistanis in the name of Islam. On the same day, Afghan officials claimed Pakistani troops fired on Afghan soldiers who were pulling down a disputed fence on the border. Pakistani officials claim the Afghan patrol opened fire without provocation. There were no casualties in the exchange. 04/20/07 —Mullah Nazir, leader of the tribal militia that killed dozens of al Qaeda-linked foreign militants in South Waziristan, reportedly said he would provide refuge to Osama bin Laden because tribesmen "support oppressed people." 04/21/07 —AP Television News in Peshawar obtained a video, copies of which were being sold in village bazaars, of a 12-year-old boy beheading a Pakistani man accused of being an American spy and betraying a Taliban official who was killed in December in Afghanistan. 04/22/07 —Israeli Prime Minister Ehud Olmert declined Pakistani President Musharraf's offer to mediate an agreement between Israel and Palestine. Olmert reportedly said he preferred to maintain direct contact with Palestinian Authority Chairman Mahmoud Abbas. On the same day, three video and music shops were bombed in the NWFP where extremists consider those businesses un-Islamic. 04/23/07 —Six people, including four boys aged 14 and 15, were killed by police and security forces in the FATA when students of a school run by the extremist group Lashkar-i-Islami attacked the home of a rival chief. On the same day, it was reported Pakistan's Federal Investigation Agency and Interpol had recovered 43 children who had been smuggled to Middle Eastern countries since January to be used as camel jockeys. The agency arrested 26 human traffickers and agents. Also, the Daily Times reported that ongoing strikes by lawyers protesting the suspension of Chief Justice Chaudhry have created a backlog of cases filed with various courts. At least 23 judicial officers around the country, including judges and a deputy attorney general, resigned in protest of the judiciary's loss of autonomy. 04/25/07 —Unidentified gunmen shot dead two members of a prominent Shia family and their Sunni employee in a targeted sectarian attack in the NWFP. On the same day, Pakistani Prime Minister Aziz reportedly stated that Pakistan could not sign the Non-Proliferation Treaty or the Comprehensive Test Ban Treaty because it neighbors another nuclear state. Also, addressing the London School of Economics, former Pakistani Prime Minister Benazir Bhutto reportedly said that her administration's support of the Taliban had been a mistake. 04/26/07 —The International Commission of Jurists (ICJ) concluded a seven-day mission to Pakistan to examine developments following the March 9 suspension of and accusations of misconduct against Chief Justice Chaudhry. In a preliminary report, the ICJ stated that "it would appear that the Executive reacted increasingly to the judicial activism of the Chief Justice" in cases in which the chief justice "seemed to have irked agencies of the Executive." In conclusion, the ICJ mission stated that "irreversible damage to constitutional order in Pakistan" could be caused if the government did not "restore a fundamental democratic principle that is pivotal for the rule of law in Pakistan—the independence of the judiciary." On the same day, one civilian in Afghanistan was killed during an attack from Pakistan in which 20 rockets were fired. 04/27/07 —Four people died and three others were wounded when a house and two religious schools exploded in North Waziristan tribal agency near the Afghan border. A military official said the victims had accidentally set off the explosion while making bombs, while local officials claimed missiles were fired either from Afghan territory or from an unmanned U.S. drone. On the same day, the Pentagon announced that it had taken custody of Abd al Hadi al-Iraqi, a top al Qaeda commander and the leader in a 2003 assassination attempt on Pakistani President Musharraf. Also, Mark Ward, the senior deputy assistant administrator for the Asia and Near East Bureau of the United States Agency for International Development (USAID), announced that the agency was pledging $1.5 billion in a five-year development program for the FATA. 04/28/07 —Aftab Ahmed Khan Sherpao, Pakistan's interior minister, was the apparent target of a suicide bomber at a public rally in the NWFP. At least 26 people died and 50 were wounded, including Sherpao and his son, also a member of Parliament. It was later reported that the Afghan suicide bomber was linked to an Indian group trying to destabilize Pakistan's society. On the same day, transport associations claimed that 10,000 trucks stopped transporting goods, including supplies for U.S. and NATO troops, into Afghanistan until Afghan authorities removed illegal check points where local commanders collect fees. Truckers also wanted a guarantee of safe passage into Afghanistan. 04/30/07 —The U.S. Department of State's Country Reports on Terrorism estimated that up to 900 Pakistanis died in "more than 650 terror attacks in 2006, with another 1,500 people seriously injured." It was noted that attacks came from both international groups, such as al Qaeda, and from "militant sub-nationalists." The report highlighted the cooperative efforts of Pakistani, British, and American law enforcement agencies that uncovered the London-Heathrow bomb plot and resulted in arrests of the conspirators. On the same day, a meeting of Pakistani President Musharraf and Afghan President Karzai, hosted by Turkish President Ahmed Necdet Sezer, concluded with the Ankara Statement by which Musharraf and Karzai agreed "to deny sanctuary, training and financing to terrorists and to elements involved in subversive and anti-state activities in each other's country" and to share intelligence. Also, the International Container Security facility opened at Port Qasim in Karachi to screen cargo containers headed to the United States. The $8 million cost was shared by the U.S. and Pakistani governments. 05/01/07 —According to the 2007 Special 301 Report , the Office of the U.S. Trade Representative has kept Pakistan on the Intellectual Property Rights Watch List and will conduct an Out-of-Cycle Review due to the continued marketing of patent-infringing pharmaceutical products. On the same day, Human Rights Watch reportedly said that Pakistani President Musharraf's scheme to be reelected by the sitting Parliament before holding a general election was a "sham." 05/02/07 —According to the Annual Report of the United States Commission on International Religious Freedom, the political alliance between Pakistani President Musharraf's government and "militant religious parties" has strengthened the militants and given them "influence in the country's affairs disproportionate to their support among the Pakistani people," leaving the government ineffectual in responding to chronic "sectarian and religiously motivated violence" against minorities. The commission recommended that the State Department designate Pakistan as a "country of particular concern." On the same day, the Capital Development Authority in Islamabad allocated property for six of the seven mosques that were razed in January 2007. The mosques were demolished because they had been built illegally and were considered security risks. The demolitions led to much of the conflict between Lal (Red) Mosque and the government. 05/03/07 —The Pakistan Nuclear Regulatory Authority (PNRA) ran quarter-page ads in Urdu-language newspapers asking readers to advise authorities of any found nuclear material that had been misplaced from medical or industrial research facilities. A PNRA spokesperson reportedly said no particular incident initiated the ad campaign. The government of Pakistan and the United Nations High Commission for Refugees (UNHCR) published a report of findings following the 15-week drive to register Afghan refugees living in Pakistan. Registration findings indicated that up to 74% of the registered refugees are under age 28 and may have never lived in Afghanistan. 05/04/07 —Pakistan's Supreme Court ordered the government to submit affidavits detailing the apprehension, detention, and release of, or efforts in locating 56 missing persons allegedly picked up by intelligence agencies. On the same day, explosions in tribal areas destroyed or damaged 20 music shops after business hours. Shopkeepers had received letters warning them against keeping their businesses open and selling items considered un-Islamic. Finally, masked gunmen in North Waziristan killed a government driver while militants wounded eight Pakistani soldiers, three seriously, in a grenade attack on a military convoy. 05/05/07 —Tens of thousands of supporters lined the roads and cheered Chief Justice Chaudhry as he traveled by motor convoy from Islamabad to Lahore. The throngs slowed the usual four-hour journey to 21 hours. On the same day, three private television channels lost their transmission to parts of Sindh province. The Pakistan Electronic Media Regulatory Authority (PEMRA) denied involvement, but cable operators reportedly claimed to have been ordered to stop transmitting coverage of the rally for the chief justice. Also, residents of Karachi, angered by frequent and unannounced power blackouts, attacked three offices of the Karachi Electric Supply Corporation (KESC), where they damaged the offices and roughed up staff. Almost all parts of Karachi experienced outages, but the sections that were worst-hit had power shut down for over six hours. A KESC spokesperson explained that the corporation had to interrupt power to cover a supply shortage. 05/06/07 —A crowd of 20,000 in Lahore listened to Chief Justice Chaudhry speak. He reportedly told them, "The concept of an autocratic system of government is over ... Those countries and nations who don't learn from the past vanish." On the same day, Syed Qamar Abbas, former NWFP provincial minister and head of the opposition Pakistan People's Party, was gunned down by unknown assailants on motorcycle. A relative was killed with him. 05/07/07 —Several markets in Lahore remained open until 9:00 p.m. or later, defying the directive of the Water and Power Development Authority (WAPDA) to close by 8:00 p.m. to conserve energy and reduce the periods of power outages. 05/08/07 —Armed men attacked a construction company in Baluchistan. One worker was killed, one was wounded, and three were kidnapped. Employees refused to continue working until security was improved. 05/09/07 —The government of Pakistan contributed $5 million to UNHCR towards the Repatriation Program for Afghan Refugees. On the same day, the United Nations and other aid agencies suspended all work in the area of Pakistani Kashmir devastated by the October 2005 earthquake after a house occupied by two aid workers was torched by suspected Islamists. Clerics and an organization called the Joint Action Committee had warned the organizations against hiring women. 05/10/07— Police arrested 12 suspects accused of plotting a terrorist attack in Karachi at a rally for the chief justice scheduled for May 12, 2007. As a result, the Pakistani interior minister asked the chief justice to postpone travel to Karachi, but the latter refused. On the same day, former Pakistani Prime Minister Mir Zafarullah Jamali appeared before the National Assembly and asked that a May 12 rally in Karachi planned by the pro-government MQM party as a show of support for Pakistani President Musharraf be postponed so opposing groups would not clash. 05/11/07 —Up to 500 political workers from various opposition parties were arrested in Karachi, and 15,000 police were reportedly deployed in preparation for a visit and speech by the chief justice and counter-rally planned by the pro-government MQM party. The General Secretary of opposition party Pakistan Muslim League-Nawaz (PML-N) demanded that the MQM party postpone its rally "if they really want to see Karachi as a peaceful city." 05/12/07— The chief justice arrived at the airport in Karachi but was unable to leave to deliver his speech at the Sindh High Court due to roadblocks and reports of gunfights. After several hours, he and his attorneys returned to Islamabad. Men armed with shotguns and assault rifles fired on the judge's supporters and television stations and torched dozens of vehicles. Bystanders claimed to have witnessed MQM political party activists gun down workers of opposition parties. At least 42 people died and over 100 were injured. People claimed that police did nothing to protect rally participants, and it was reported that the Sindh home department had directed police stations to equip officers only with batons. One officer was quoted as saying, "It was as if we were just put here to watch." On the same day, approximately 30,000 to 50,000 people joined a pro-government rally in Islamabad. Local organizers had hoped to attract more than 300,000 supporters. Addressing the crowd after hearing news of the violence in Karachi, Pakistani President Musharraf reportedly said the government had not wanted to hold a public rally but only did so because opposition parties were "exploiting the issue" of the suspended chief justice. 05/13/07 —New violence resulted in the deaths of seven more people in Karachi, and troops were reportedly advised to shoot anyone involved in fighting. Opposition parties, lawyers' groups, and human rights organizations condemned the federal government, the Sindh provincial government, and the pro-government MQM political party for causing the violence in Karachi. Opposition party activists attacked MQM workers and burned and destroyed their offices in several towns in Sindh and the NWFP. An HRCP spokesperson reportedly stated, "Only a callous, irresponsible and unrepresentative government could have celebrated in Islamabad while Karachi burnt." On the same day, Mullah Dadullah, the Taliban's top operational commander, was killed in a U.S.-led operation in Helmand province of Afghanistan. Also, Afghan National Army soldiers and Pakistan's Frontier Corps exchanged gunfire at border posts in NWFP. Six Afghan troops died. 05/14/07 —Border fighting between Afghan and Pakistani forces continued into the morning. Artillery hit a school, bazaar, and clinic and killed seven children. Following a meeting to call an end to the border skirmishes, gunmen fired upon a NATO convoy, killing U.S. Army Major Larry J. Bauguess, Jr. and a Pakistani soldier and injuring several others. A Pakistani general said unidentified "miscreants" dressed as Pakistani soldiers did the shooting. On the same day, four masked gunmen broke into the Islamabad home of Syed Hamad Raza, a deputy registrar of the Supreme Court, and shot and killed him. The Daily Times reported that Raza was a "prime defence witness" in the case to suspend Chief Justice Chaudhry. Also, a general strike called by opposition parties shut down Karachi and other major cities in protest of the May 12 violence. Up to 10,000 lawyers in Lahore boycotted court proceedings and marched in the streets shouting "Go Musharraf go," then held a funeral in absentia for the Karachi "martyrs." 05/15/07 —A suicide bomber detonated a bomb in a hotel restaurant at midday in Peshawar, killing at least 24 people and wounding another 25. Authorities said it was too early to determine if the bombing was done in retaliation for the killing of Mullah Dadullah. On the same day, retired U.S. General John Abizaid, speaking at the Australian Defence College, reportedly said that "a meltdown in the security apparatus" in Pakistan or Saudi Arabia "could have implications for us that make the current situation [in Iraq and Afghanistan] look easy." Also, pro-Taliban militants firing mortars and machine guns killed five civilians in Tank in the NWFP. Injured were 12 civilians and six police. 05/16/07 —Up to six Afghans and Pakistanis died in a clash with police who were sent to demolish Afghan homes in a Baluchistan refugee camp slated to be shut down by August 2007. On the same day, thousands of Afghans protesting border skirmishes gathered outside the Pakistani embassy in Kabul shouting, "Death to Pakistan, death to Musharraf." 05/17/07 —The U.S. House of Representatives passed the National Defense Authorization Act for FY2008 ( H.R. 1585 ). Section 1206 concerns Pakistan's security forces, while Section 1232 deals with the stability of the Pakistan-Afghanistan border region. On the same day, the Afghan army traded mortar and small arms fire with Pakistan's Frontier Corps at the border between Pakistan's FATA and Afghanistan's Paktia province. Four Afghan troops were killed. Also, Pakistani President Musharraf reportedly stated in a television interview that former Prime Ministers Mian Nawaz Sharif and Benazir Bhutto would not be allowed to return to Pakistan prior to the next general election, although their return might be reconsidered after the election. Any reported cooperative deal between Bhutto and Musharraf that would have allowed her lawful return appeared "to be dead." 05/18/07 —Students of the Lal (Red) Mosque madrassa seized four policemen with their vehicle and arms. Top cleric Abdul Aziz Ghazi blamed the government for "encouraging licentious western lifestyle" and "urged masses to rise up against all evil forces of the country." The government exchanged several students who had been detained earlier for two of the police officers. On the same day, Saud Memon died in a Karachi hospital. He had been included on Pakistan's "most wanted" list as a key financier of an outlawed group associated with al Qaeda and had owned the property where Wall Street Journal reporter Daniel Pearl's body was found in 2002. Authorities reported that he died of tuberculosis and meningitis, while his family claimed he had been poisoned. His family said Memon had been detained in March 2003 and sent to Guantanamo, then was later released to Pakistani authorities. Also, 31 people died and at least 60 more were injured in windstorms, floods, and other rain-related incidents in regions of the NWFP. Finally, the editor-in-chief of the South Asian News Agency was dragged from his vehicle in Islamabad, beaten, asked if the chief justice was his father, and warned "to give up the coverage of anti-government activities." He was left severely injured and was hospitalized. 05/19/07 —A total of 13 people died and 25 more were injured during armed clashes between rival militant groups in several villages in the FATA. On the same day, the Karachi City Courts police station registered a case against the Sindh government, MQM political party activists, and high police officials "for opening fire on lawyers, besieging the bar building, attempted kidnap and injuring the Karachi Bar Association members" on May 12 at the rally for the suspended chief justice. 05/20/07 —The Los Angeles Times reported that a 2006 initiative increased CIA operations in Afghanistan and Pakistan by adding 50 "clandestine operatives" with the objective of locating Osama bin Laden and Ayman al Zawahri. Although the increase in personnel did not meet the primary objective, intelligence officials reported that "al Qaeda's command base in Pakistan is increasingly being funded by cash coming out of Iraq, where the terrorist network's operatives are raising substantial sums from donations to the anti-American insurgency...." CIA officials reportedly said their efforts to locate bin Laden were hampered by the September 2006 "peace agreements" that the Pakistani government brokered with leaders in North Waziristan tribal agency and the subsequent withdrawal of Pakistani troops from the border region. 05/21/07 —The 43 rd victim of the May 12 violence in Karachi died from gunshot wounds. On the same day, 10 tankers carrying oil for U.S.-led coalition forces in Afghanistan were destroyed or damaged when two remote-controlled missiles hit them while standing in a parking lot near the border at Torkhum in NWFP. 05/22/07 —Pakistani security forces and helicopter gunships attacked a suspected al Qaeda training camp in North Waziristan, killing four foreign militants. On the same day, the World Bank approved a $350 million credit to support the government's medium-term reform program. The Second Poverty Reduction Support Credit will finance reforms "to maintain macro-economic stability, improve management and effectiveness of public expenditures, and assist power sector reforms." Also, President Bush nominated Anne Patterson, current Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, to be the new U.S. Ambassador to Pakistan. 05/23/07 —It was reported that U.N. officials were investigating allegations from 2005 that Pakistani peacekeepers trafficked gold and weapons with Congolese militia members rather than disarm them. 05/24/07 —The European Parliament voted 522-9 to adopt a report on Kashmir prepared by Baroness Emma Nicholson in November 2006. The report discusses the impact of the October 2005 earthquake in Azad Kashmir and the response of the Pakistani government, the dialogue between India and Pakistan regarding the LOC, and confidence building measures implemented by both countries. The Pakistan Foreign Office said the "numerous factual inaccuracies, distortions and extraneous elements" detract from the "objectivity and credibility" of the report. On the same day, Nilofer Bakhtiar, Pakistan's tourism minister, resigned her position following condemnation and a threatened fatwa about a newspaper photo showing her being touched by a Frenchman. She later withdrew her resignation after government leaders reassured her of their support. (See entry for 4/10) Also, the Lal (Red) Mosque released the last two police officers held hostage after the government stopped all contact with mosque administrators. 05/25/07 —The Pakistani government reported to the Supreme Court that 98 of the reported missing persons have been traced, and most have been released to their homes. On the same day, 11 of the 14 tribal elders who make up the peace and coordination committee in North Waziristan resigned in protest of the air and ground offensive of the Pakistani forces that killed four foreign militants. Also, a recent survey by Gallup Pakistan indicated that 78% of Pakistan's urban residents experience a power shutdown almost every day. Finally, President Bush signed the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 ( H.R. 2206 ) into law ( P.L. 110-28 ). The statute specifies levels of funding to reimburse Pakistan for support provided to U.S. military operations, to support Pakistan's counter-drug activities, and to finance the Economic Support Fund for Pakistan. Section 3809 identifies the conditions for financing the Economic Support Fund. 05/26/07 —Pakistani President Musharraf launched the government-funded Trade Development Authority of Pakistan to handle "all aspects that relate to the global marketing and promotion of goods and services exported from Pakistan ... to achieve a 'quantum leap' in exports within 5 years." On the same day, a bomb exploded near a military convoy near Tank, killing at least two soldiers and wounding several more. Also, Chief Justice Chaudhry reportedly told attendees of a seminar on separation of powers, "Power corrupts and absolute power corrupts absolutely." According to news reports, Chaudhry did not name Musharraf but made a "veiled criticism" when he said the concentration of power in one man as both president and military chief could be dangerous. Finally, an infantryman in the Indian army was killed in Jammu and Kashmir during a gunfight between troops and armed militants attempting to infiltrate India across the LOC. After a 90-minute battle, the militants retreated into Pakistan-occupied Kashmir. The Indian Defence Ministry reported militants made 82 attempts to cross the LOC in April 2007 and succeeded 79 times. 05/28/07 —Four suspected pro-Taliban militants and three Frontier Corps personnel were killed and two policemen injured in three incidents in Bannu and Tank districts in NWFP. 05/29/07 —One person died and six were injured when a car bomb exploded outside the High Court in Peshawar in the NWFP. On the same day, security forces, acting on a tip-off, raided a militant hideout in Baluchistan and killed two nationalist rebels and two civilians. Also, opposition senators submitted a motion to debate the behavior of Pakistani Prime Minister Aziz as characterized in a new biography of Secretary of State Condoleezza Rice. The book alleges that Aziz tried to "charm" Rice who only stared at him. The motion before the Senate claimed that the material was "shameful for the entire nation" and needed to be discussed. 05/30/07 —Meeting by invitation with the foreign ministers of the G8 countries in Germany, the foreign ministers of Afghanistan and Pakistan issued a joint statement that they "renewed their governments' commitment to strengthen cooperation and dialogue between their countries and governments at all levels." On the same day, speaking to army officers at the Jehlum Garrison in Punjab province, Pakistani President Musharraf reportedly said that some private television channels had aired shows with "unbalanced reporting and presentation," thereby "creating pressure on judges." Referring to the issue of the suspension of the chief justice, Musharraf said the media should not politicize "what was purely a judicial and legal matter." He reportedly said the government did not intend to curb the "unprecedented freedom" the Pakistani media enjoy, but said the media must report responsibly, avoid exaggeration, and must not "demoralize" the nation. Also, the government banned all political gatherings of more than five people in Islamabad for two months. Finally, up to 100 suspected pro-Taliban militants armed with rockets, hand grenades, and rifles attacked the home of a senior government official near Tank. Some 13 people died and several others, including children, were injured. An editorial in the Daily Times claims this "Islamic execution" highlighted the "diminishing hold of the government and state on its territory." Rising tribal militancy implies increasing approval in all parts of Pakistan for Taliban-style governance as "key to replacing the present 'America-enslaved' system." 05/31/07 —Muhammad Ali Durrani, the Pakistani Federal Minister for Information and Broadcasting, reportedly said that the "government would not allow negative propaganda against the armed forces, judiciary, and other constitutional institutions." He said the government would strictly implement the rules of PEMRA. Television stations claimed they had received "verbal instructions" not to show live coverage of political rallies. On the same day, police arrested four Kashmiri men for the murder of Syad Hammad Raza, who had worked as chief of staff to the chief justice. (See entry for 5/14.) 06/01/07 —More than 10,000 pro-Taliban supporters gathered in a Baluchistan village to hear an audiotape reported to be of Mullah Mansoor Dadullah, who replaced his slain brother, Mullah Dadullah, as a Taliban commander. On the tape, Mansoor Dadullah purportedly said that "we will never forget the blood of our martyrs and will complete Dadullah's mission of expelling the infidels and their lackeys from our motherland." According to the Daily Times , "several current and former members of [P]arliament from hardline Islamist political parties" also spoke before the crowd. 06/02/07 —Suspended Chief Justice Chaudhry led a 75-mile, 11-hour convoy of lawyers from Islamabad to Abbottabad in the NWFP to hold a rally since gatherings have been banned in Islamabad. An estimated 50,000 to 100,000 people greeted the justice en route or heard him speak at the rally. On the same day, PEMRA issued letters to television stations asking them not to air programs that "encourage" violence, promote an "anti-state attitude," contain "aspersions against the judiciary and the integrity of the armed forces," or "malign or slander anyone in public life." Also, members of the Cable Operators Association of Pakistan announced that they would cease broadcasting any channel that carried programs "against the 'armed forces, judiciary and the integrity of Pakistan.'" Finally, a roadside bomb explosion in FATA killed five people, including a regional government official, two policemen, and a tribal journalist. 06/03/07 — The New York Times reported that former Pakistani Prime Minister Benazir Bhutto and Pakistani President Musharraf have been "conducting discreet negotiations" for a deal to drop corruption charges against Bhutto and allow her return from exile while keeping Musharraf as president. Bhutto believes the election of 2007 may be "Pakistan's last chance to choose a moderate path." 06/04/07 —Indian troops killed four suspected Muslim militants trying to cross the "de facto border" from Pakistan into Indian-held Kashmir. The Indian army claimed this was the sixth time in 10 days that "infiltrators" tried to cross the LOC. Also, Pakistani President Musharraf issued an emergency ordinance to give PEMRA the power to revoke the broadcasting licenses or confiscate transmission equipment of any independent television stations that defied its rules. Fines for violators were increased tenfold. Finally, several independent stations claimed their transmissions had been blocked or interrupted and alleged that the government pressured cable companies to interfere with broadcasts. 06/05/07 —Police in Sindh province claimed to have arrested two militants linked to the 2002 murder of journalist Daniel Pearl. A civil rights attorney, however, reportedly stated that the two men were arrested in 2003 and had been secretly detained by the government since that time. On the same day, authorities in Punjab province arrested hundreds of opposition party activists in advance of a scheduled day of protest against the government. Also, police filed a preliminary complaint against 200 journalists for challenging a ban on rallies in Islamabad. The journalists had gathered to protest the government's tightened restrictions on the media. The complaints were later withdrawn. 06/06/07 —Journalists in the press gallery at Parliament erupted into protests, shouting "We want freedom" and "PEMRA ordinance unacceptable." Parliamentarians of opposition parties joined the protest, shouting "Go, Musharraf, go." The session was adjourned. On the same day, the provincial government of Baluchistan announced that it had reached an agreement with the government of Iran to run electricity transmission lines to Quetta to electrify rural areas of the province. Also, the U.S. House of Representatives passed H.R. 2446 to reauthorize the Afghanistan Freedom and Security Support Act of 2002. Sections 2, 212, 304, 305, and 307 concern Pakistan. 06/07/07— Pakistani authorities forbid all journalists from entry to Parliament. Media groups were asked to nominate two journalists to report on the Assembly. The ousted reporters remained outside the Parliament building and protested. On the same day, Pakistani Prime Minister Aziz announced that implementation of the amended PEMRA ordinance would cease until a six-member committee reviewed the amendments. 06/08/07 —Pakistani Prime Minister Aziz accepted the resignation of Pakistani Tourism Minister Nilofer Bakhatiar. (See entry for 5/24.) On the same day, two towns in the Turbat district of Baluchistan flooded following the heavy rains of tropical cyclone Gonu, and 15,000 people were evacuated for fear of a possible dam break. Also, Karachi residents protesting an eight-hour long electrical outage blocked traffic, burned tires, and threatened a general strike. Finally, in an op-ed piece in The Wall Street Journal , former Pakistani Prime Minister Benazir Bhutto claimed that Pakistani President Musharraf's government has "undermined secular forces," fueled instability, and become a tiger "clearly eating his own tail." 06/09/07 —Pakistan's government announced a budget of 1.87 trillion rupees (US$30.9 billion) for the fiscal year starting July 1, 2007. The budget projected a deficit of 398 billion rupees and a growth target of 7.2%. Up to 275 billion rupees were allocated for defense, an increase of 25 billion. The government proposed to spend 520 billion rupees on public sector development to generate jobs. On the same day, Pakistani President Musharraf withdrew the amended PEMRA ordinance after broadcasters vowed to develop a new code of conduct in three days. Also, a heat wave killed as many as 285 people around the country in a few days. Temperatures in Lahore, at 118°F, were the highest in 78 years. Finally, a bomb blast outside a hotel in the town of Hub in Baluchistan killed three people and wounded nine. 06/10/07 —Pakistan agreed to join the Global Initiative to Combat Nuclear Terrorism. According to the Ministry of Foreign Affairs, Pakistan "declared that the global initiative does not cover Pakistan's military nuclear facilities or activities" but only civilian plants and actions. On the same day, six people died in a clash between Indian troops and Islamic militants along the LOC. 06/11/07 —After a month of legal arguments and deliberation, Pakistan's Supreme Court ruled that it will be the judiciary body to hear the case of the government's accusations of misconduct and misuse of authority against Chief Justice Chaudhry. He had challenged the impartiality of the Supreme Judicial Council, specially appointed by the government to conduct the inquiry against him. On the same day, tribesmen in the FATA protested unannounced power cuts by blocking traffic and chanting slogans against the WAPDA and the government. Leaders reportedly said that if the government did not stop the power outages, area residents would "take actions on their own behalf." 06/12/07— Three Indian soldiers and five suspected Islamic militants died in two clashes near the LOC. A spokesman for the Indian army reportedly claimed the Pakistani government had done nothing "to stop terrorists from infiltrating along treacherous routes in Kashmir." On the same day, in retaliation for the torture and death of a 17-year old boy, a mob burned down the temporary hospital that had been established by Islamic non-governmental organization Jamaat-ud-Dawa (JUD) in Azad Kashmir following the October 2005 earthquake. The U.S. government has identified JUD as a terrorist organization, and local residents claimed the group tried to appropriate property loaned to them temporarily. Members of JUD reportedly argued that the local "land mafia" attacked them. 06/13/07 —Richard Boucher, Assistant Secretary of State for South and Central Asia, arrived in Islamabad for meetings with officials. At a reception attended by journalists and politicians, Boucher did not comment on protests against the suspension of the chief justice but reportedly stressed that "the judicial process had to be respected." He also said the "lively debates" in the press indicated that the media enjoyed freedom and that the U.S. government expected free elections in Pakistan. 06/14/07 —Assistant Secretary of State Richard Boucher visited Quetta for talks with Baluchistan provincial officials. Several hours after Boucher left, gunmen opened fire on Pakistani troops driving through Quetta and killed seven soldiers and two police officers. Also, power loadshedding outages plagued most of the country. Akram Khan Durrani, chief minister of NWFP, reportedly said that ongoing power outages were "unbearable and threatening the writ of the government by increasing unrest among people." Tariq Hassan, the Sindh chief minister, reportedly suggested that the KESC should be nationalized if it could not overcome its power crisis. The Islamabad Electric Supply Corporation in Rawalpindi shut off power for several hours at a time. The outages led to water shortages and increased prices for water tankers. 06/15/07— Assistant Secretary of State Richard Boucher denied that he was visiting Pakistan to negotiate a deal between Pakistani President Musharraf and former Pakistani Prime Minister Bhutto. He reportedly said the United States believed President Musharraf's assurances that the question of holding the offices of the presidency and head of the army would be settled according to the Constitution. Deputy Secretary of State John Negroponte and Commander of U.S. Central Command Admiral William Fallon arrived in Pakistan on separate visits. On the same day, an Election Commission secretary announced that there would be 12 million fewer registered voters for this year's election because the voter list in 2002 had been inflated. The commission anticipates there will be 60 million voters registered for the 2007 election, compared to 72 million registered in 2002. 06/16/07 —Deputy Secretary of State John Negroponte purportedly told reporters that he brought Pakistani President Musharraf a "message ... of a strong friendship and trust for and with the government and people of Pakistan." He said it was up to Musharraf to decide when to quit as Army chief. On the same day, tens of thousands of people chanted "Down with dictatorship" and cheered the chief justice as he traveled from Islamabad to Faisalabad in Punjab province. 06/17/07 —Residents of Karachi rioted in the streets to protest long power outages. The worst hit areas had gone without electricity for 16 hours, while other sectors lost power for four to six hours. Mukhtar Ahmad, advisor to the prime minister on energy, said the costs of ending the power crisis will be as much as US$16 billion, more than government resources. He reportedly claimed that Pakistan will have enough power to meet demand by 2010. Authorities in Rawalpindi blamed power problems on storms that brought down trees and billboards onto power lines and transformers. On the same day, Chief Justice Chaudhry told a rally in Faisalabad that a country can only progress if it follows its Constitution. He reportedly told thousands, "We cannot get rid of the label of developing country without ensuring the security of the life and property of citizens." 06/18/07 —U.S. Ambassador Ryan Crocker launched a three-year, $11.5 million program to improve health care for children under age five across the FATA. On the same day, a senior WAPDA official was reported to have said that Pakistan was experiencing the "worst energy crisis" in its history. The nation's system has a shortfall of 20% or 3,000 megawatts of electricity. The official was quoted speculating that the energy crisis "might prove to be more lethal for the government than the ongoing political and judicial crises." Because of the energy crisis, the government announced that it will pursue the $7.4 billion Iran-Pakistan-India (IPI) pipeline project in spite of objections from the U.S. government. The IPI pipeline is expected to be completed in three to five years to deliver natural gas from Iran to Pakistan and India. Also, Pakistan denounced Great Britain's plan to knight author Salman Rushdie. Mohammed Ijaz ul-Haq, Pakistan's religious affairs minister, is reported to have said that a suicide bomb attack would be justified "unless the British government apologizes and withdraws the 'sir' title." Ul-Haq also encouraged Muslim countries to unite and break diplomatic ties with London. He later retracted his comments. Finally, it was reported that Pakistan's States and Frontier Regions Secretary had announced that Pakistan planned to repatriate 94,000 Afghan refugees by June 30, 2007. Additional groups will be returned in August and October. 06/19/07— Explosions in a madrassa in North Waziristan tribal agency killed up to 30 militants, many of them Uzbeks, Chechens, and Arabs. Accounts differ, with local residents claiming students were killed when NATO forces from the Afghan side of the border fired missiles or when an unmanned U.S. drone crossed into Pakistani air space and attacked. Reportedly, anonymous intelligence officials confirmed allegations of a NATO attack, but NATO denied any attack was made across the border. A Pakistani army general alleged the explosions accidentally occurred while militants were building bombs in their hideout. On the same day, Pakistan and the United States signed an agreement for the United States to provide $200 million in budget support for the Federal Public Sector Development Programme for the fiscal year starting July 1, 2007. 06/20/07 —Pakistan declined India's requirement to authenticate troop positions in Siachen. India's Minister of Defence, A. K. Antony, had stated that this would be a condition before demilitarization could begin. On the same day, the Pakistani Interior Ministry announced that it would rebuild seven mosques in Islamabad. Jamia Hafsa students agreed to withdraw from the children's library they have occupied since January 2007 when reconstruction is started. (See entry for 5/2.) 06/21/07 —Opposition parliamentarians filed charges of corruption against Pakistani Prime Minister Shaukat Aziz and requested his disqualification and removal from office. The charges alleged that Aziz engineered the March 2005 crash of the Karachi Stock Exchange for the profit of cronies and pushed forward the costly attempt to privatize Pakistan Steel Mill, which ultimately failed the scrutiny of Pakistan's Supreme Court. On the same day, hundreds of residents of Karachi rioted in the streets in protest of a 16-hour power outage. Six persons were injured, including two security guards, and 13 arrested, while property and vehicles were damaged. Also, the Pakistani Ulema Council, an association of 2,000 scholars, awarded the title "Saifullah" or Sword of Allah, considered to be "the highest title for a Muslim warrior," to Osama bin Laden in reaction to Britain's knighthood of Salman Rushdie. Pakistani traders associations offered a reward of 10 million rupees to anyone who beheads Rushdie.

Summary: Many see Pakistani President General Pervez Musharraf as currently facing the most serious challenges to his authority since he wrested control of Pakistan's government in a 1999 coup. Set off by the March 9, 2007 suspension of the chief justice, Pakistan's citizenry has grown vocal in its objections to Musharraf. Subsequent restrictions on the media increased the outrage, and journalists have joined thousands of lawyers and social activists in the streets to demonstrate against the president and demand his resignation. Pro-government groups have countered, resulting in factional fighting and bloodshed. In addition, long hours without electricity and safe water, historically high temperatures, and natural disasters, have much of Pakistan's population of 165 million on edge. On top of this, "Talibanization" has spread throughout the tribal areas and into major cities. Militant mosques make demands on the government, while village groups blow up shops that sell such agents of Westernization as music CDs and movie videos. Many reporters and analysts believe the federal government has lost its command of much of the country and speculate on a post-Musharraf government. Conflicts with neighboring countries include cross-border fighting, infiltration by militants, and territorial disputes. Gunfights with foreign militants and border patrols plague Pakistan's border with Afghanistan. Spring thaws have heightened tensions with India along the Line of Control. For additional analysis, see CRS Report RL33498, Pakistan-U.S. Relations, by [author name scrubbed]. This report will be updated as warranted.