A bill to amend the Foreign Assistance Act of 1961 for the purpose of establishing policy with respect to aid to Pakistan and India.

Amends the Foreign Assistance Act of 1961 to prohibit any country in South Asia which the President determines is producing weapons grade enriched uranium or separated plutonium in unsafeguarded facilities from receiving any U.S. assistance or obtaining an export license for the purchase of sophisticated U.S. equipment or technology with potential military application, until the President certifies to the Congress that the country has ceased producing such materials or has placed the facilities at which the materials are produced under international safeguards.

Directs the Secretary of the Treasury, during any period that U.S. bilateral assistance to such country has been terminated pursuant to this Act, to instruct the U.S. executive directors of specified multilateral financial organizations to oppose any assistance to that country using funds provided by the United States.

Allows the President to waive such requirements if the President: (1) certifies to the Congress that a second country in South Asia is producing such materials, and the failure of that country to agree to cease production is a factor in the first country's continued production; and (2) determines that the waiver is in the national interest.

Requires the President to submit any waiver or certification at specified intervals and to specified congressional committees. Allows the President to take appropriate action if he determines that the situation in South Asia has changed. Requires the President to: (1) submit reports, at specified intervals, to the intelligence committees and intelligence community, containing a description of the isotopic content and quantity of separated plutonium and uranium produced or imported by any such country; and (2) notify specified committees that each such report has been transmitted to the intelligence committees.

Extends through FY 1993 the President's authority to waive, with respect to Pakistan, prohibitions against providing economic, military, or security supporting assistance to certain countries receiving or transporting nuclear enrichment equipment, materials, or technology. Requires the President, before issuing such a waiver, to submit to the Congress a report detailing: (1) the degree to which the Government of Pakistan has cooperated in the investigation of the Arshad Pervez case; (2) what legal action Pakistan has taken against any Pakistanis who are shown to have been involved in such case; (3) what actions Pakistan has taken to ensure that no such incident occurs again; and (4) the nature of any assurances which the Government of Pakistan has provided against any future illegal procurement of goods of U.S. origin which would contribute significantly to Pakistan's ability to manufacture a nuclear explosive device.