The aid relations of the developed nations with the developing world have dual purposes which aimed to use assistance programs as a tool to pursue its goals. Hence, aid instrument serves the mutual interests of both the developed and under-developing countries of the world. After the terrorist strikes on the World Trade Centre, New York, the United States of America on September 11, 2011, pledged to root out the Al-Qaeda Network in Afghanistan with the support of international community and particularly Pakistan.Pakistan being a neighbour of Afghanistan became and played a role of front line ally in the US led war on terror.Consequently, the US congress on October 16, 2001 passed legislation that waived sanctions to revive economic assistance including arms export and military aid to Pakistan.A new era of economic and development assistance was revived by the US and other polities of the world by focusing mainly to combat terrorism.In this regard, the United States Agency for International Development(USAID)and Canadian International Development Agency (CIDA) have been playing pivotal role in the development sector of Pakistan since the 9/11 mayhem.