Despite an extensive debate on foreign aid, the voluminous aid literature mainly focuses on donors' strategies, aid modalities, and the scope for foreign aid to improve development indicators. The evaluation of foreign aid outcomes (or aid effectiveness) dominates the debate. The aid literature has rarely considered the aid policy process and the influence of aid policy networks on managing foreign aid decisions in an aid recipient country. This research responds to this gap by providing new understanding of how the aid community interacts and manages aid decisions in Pakistan. The aim of this research is to explore how donors and the Pakistan government interact to manage foreign aid in the aid policy network. This research provides an in-depth, qualitative, rich description of donor-Pakistan government interactions in managing the aid policy process. These insights are valuable in improving existing knowledge about the complexities, interdependencies and constraints involved in managing foreign aid in Pakistan. This research focuses on donor-government interactions in the complex web of multiple actors. First, it maps the network structure in place to manage the aid delivery system. Second, it explores the network management strategies actors employ in their attempt to manage the aid policy process. Finally, it examines the influence of aid proliferation and state capacity on managing foreign aid in Pakistan. This study concludes that many of the problems of international development aid are known to the actors involved in the aid policy process in Pakistan. However, there has been a lack of collective action on practical steps to make foreign aid more effective that adds to the complexity of the aid policy process. To make the aid policy process work better and eventually enhance the value and effectiveness of foreign aid, the Pakistan government and donors need to review their partnership strategies and interaction practices to make aid efforts more collaborative and improve coordination. The Pakistan government needs to focus more on overcoming capacity issues and shortages of technical expertise in the public sector, while donors should cooperate with the government in curtailing high transaction costs. Nonetheless, overcoming the passive acceptance of the problems among actors involved in the aid delivery process is likely to be hugely challenging.