U.S. reschedules Pak. debt

By B. Muralidhar Reddy

ISLAMABAD, SEPT. 24. Pakistan and the U.S. today signed an agreement here to reschedule a $379 million government-to- government debt Pakistan owes the U.S.

The agreement, between the U.S. Ambassador to Pakistan, Ms. Windy J. Chamberlin, and top Pakistan Finance Ministry officials, is in line with the general agreement on debt rescheduling for Pakistan reached by Paris Club members in January this year.

But the significance of the agreement would not be missed in the context of the decision of the military Government to side with the U.S. in its fight against Osama bin Laden and the Taliban.

The Paris Club agreement permits Pakistan to reschedule about $1.8 billion in official debt after negotiating a specific agreement with each creditor country. Goodies have begun to flow to Islamabad after its decision to break its two-decade-old bond with the regime in Afghanistan.

Speaking after the signing ceremony, Ms. Chamberlin said the agreement was a strong and public U.S. endorsement of Pakistan Government's management of its economic recovery.

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Section  : International
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