U.S. helping Pak.: Aziz

ISLAMABAD, AUG. 5. Notwithstanding the U.S. insistence to continue sanctions on Pakistan till it reverted back to democracy, the military regime has said it continues to receive ``support'' from the Bush administration in getting new loans to pursue its reform agenda.

The Pakistan Finance Minister, Mr. Shoukat Aziz, referring to the just concluded visit of the U.S. Assistant Secretary of State for South Asia, Ms. Christina Rocca, here, said despite sanctions the U.S. was ``very supportive'' of the policies pursued by his Government and was ``actively reviewing the whole sanction scenario against Pakistan''.

Mr. Aziz told a press conference on Saturday that even though the U.S. abstained from the executive board-level meetings of the IMF and the World Bank, a favourable report from the U.S. administration played a crucial role in getting the approval of new loans for Pakistan from the two financial bodies.

Meanwhile, Mr. Aziz refrained from giving details of any conditions for the removal of sanctions. He, however, was quoted by media that he urged the U.S. official to repeal sanctions against Pakistan, as they were counter-productive.

``Removal of sanctions would help Pakistan to become economically stronger, hence would lead to strong relations between the two countries,'' he said.

Pakistan reels under three-layered sanctions - nuclear sanctions of early 1990s, which were multiplied after nuclear tests of May 1998 and a new set of sanctions imposed after the October 1999 military coup.

Pakistan, under $60 billion foreign and domestic debt has got a much needed reprieve after the World Bank granted $700 million loan for structural adjustment.

The loan was expected to tide over the short-term crisis arising out debt servicing payments which amounted to about $3 billion this year.

Pakistan has to clear $21 billion debt in the next four years. Its total foreign debt is estimated to be around $38 billion.

Pakistan is currently negotiating a $200 million soft term credit for Gawdar port construction in its southern coast in which China evinced a great interest for the port's strategic location. Mr. Aziz is leaving for China tomorrow to secure the loan.

- PTI

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