The Hindu : `U.S. committed to write off $1 b. Pak. debt'

Online edition of India's National Newspaper
Thursday, Nov 07, 2002

International

International

`U.S. committed to write off $1 b. Pak. debt'

By B. Muralidhar Reddy

ISLAMABAD Nov. 6. In a signal that the Bush administration sees the Pakistan President, Pervez Musharraf, as its best bet to protect its interests in the region, a senior official of the United States announced here today that America is committed to write off Pakistan's $1 billion debt.

The U.S. Undersecretary of State for Economic, Business and Agriculture Affairs, Alan P. Larson, now on a visit to exchange views with the Musharraf regime, said here that Washington was moving forward with an agreement reached earlier this year to write off $1 billion of Pakistan's debt. Among others, he met Gen. Musharraf and the Pakistan Finance Minister, Shaukat Aziz.

Mr. Larson said it was part of an effort to foster long-term improved ties with Islamabad. As part of the agreement signed in August between Pakistan and the U.S., Washington had agreed to write off the $1 billion debt and reschedule another $3 billion of Pakistan's debt.

The U.S. official was all praise for the economic reforms initiated by the Musharraf Government. He said the U.S. President, George W. Bush, planned to ask Congress for authorisation in the coming months.

"The cancellation of the $1 billion debt is on track. We want a long-term and durable relationship with Pakistan,'' Mr. Larson said after talks with Pakistani finance officials.

In his meeting with the Pakistan Finance Minister, the U.S. official has assured support for the Pak.-Turkmen-Afghanistan gas pipeline project as well as financial assistance in the fiscal year 2003-2004.

It was agreed at the meeting that the U.S. and Pakistan would work to encourage bilateral sector investment, expand trade, pursue poverty alleviation, micro-financing, technology sector, especially bio-technology and information technology.

The U.S. has agreed to assist Pakistan in improving management of customs services.

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