(Sec. 1) Authorizes the President, with respect to Pakistan, to waive any provision of the Foreign Operations, Export Financing, and Related Programs Appropriations Act for Fiscal Year 2003 prohibiting direct U.S. assistance to a country whose duly elected head of government was deposed by decree or military coup, if the President determines and certifies to the appropriate congressional committees that such waiver: (1) would facilitate the transition to democratic rule in Pakistan; and (2) is important to U.S. efforts to respond to, deter, or prevent acts of international terrorism. Requires the President not less than five days before the obligation of funds for Pakistan, or before the exercise of the waiver authority, to consult with the appropriate congressional committees with respect to such obligation or waiver.
(Sec. 2) Authorizes the President to waive certain sanctions imposed on foreign persons in Pakistan prior to January 1, 2001, for violation of provisions under the Arms Export Control Act or the Export Administration Act of 1979 prohibiting the transfer of items on the Missile Technology Control Regime: (1) only after consultation with the appropriate congressional committees; and (2) without regard to certain notification periods set forth authorizing the waiver.
(Sec. 3) Exempts Pakistan from certain foreign assistance requirements prohibiting U.S. assistance to countries that default in payment of U.S. loans.
(Sec. 4) Shortens certain congressional notification deadlines with respect to the drawdown and transfer of excess defense articles and defense services of the Department of Defense to respond to, deter, or prevent acts of international terrorism.