Thursday, January 23, 2003
US Govt pushing for $1 bn Pakistan debt write-off
Associated Press Karachi, January 23
The US government is urging Congress to write off $1 billion in debt that Pakistan owes the United States, US Ambassador Nancy Powell said on Thursday.
The debt relief would be part of an assistance package recognizing Pakistan's strong backing of US-anti-terrorism efforts in neighbouring Afghanistan and elsewhere. Aid began with a $600 million grant in November 2001 following the terrorist attacks on the United States, and has expanded into a multibillion dollar relief bundle.
Powell said US President George W Bush had promised Pakistan's President Pervez Musharraf in February last year that he would work with Congress to help ease Pakistan's debt burden.
"We are working hard to have this substantial debt forgiveness included by Congress in the current budget," Powell said in a speech to executives of US companies in Karachi. Pakistan owes the US government $3 billion. Powell said Bush's administration has already rescheduled payments to relieve Pakistan's short-term cash flow problems and to reduce the amount it owes. US assistance has ranged from promoting economic development and border security to providing $100 million for education, along with funds for health care and agriculture.
Also on Thursday, Powell signed a $287,480 grant agreement with the Karachi Port Trust on behalf of the US Trade and Development Agency to help fund a feasibility study for a desalination plant in Karachi.
US economic support, along with relative stability brought by Musharraf's government, have helped engineer a modest recovery in Pakistan's economy over the past year.
Powell urged Pakistan to stay on its course of structural reforms and prudent economic management.
"This continuity is a key to sustaining a welcoming investment climate for foreign and domestic capital that Pakistan needs to strengthen the foundation for sustained and robust growth," she said.
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