Stands for Pajama Wearing Ass Clown. Term used by American combat forces for an Arab male. Adopted for usage due to political correctness, making terms such as "diaper head", and "camel jockey" unacceptable to command.
Used frequently when a C.O. or other higher up may be listening in on radio conversation.
I have 3 PWACs coming up to the check point in a red sedan.