Friday, April 30, 2004
US to give Pakistan $701 mn military, economic aid
Indo-Asian News Service Islamabad, April 30
Pakistan and the US have finalised details of a $701 million military and economic assistance package that will be offered to Islamabad in November.
"The US Government has sent a formal request to the Congress to approve a $701 million military and economic assistance programme for Pakistan, which is to be approved on November 1 along with the US budget for 2005," Dawn on Friday quoted Finance Minister Shaukat Aziz as saying.
He told the newspaper on Thursday after his return from a visit to the US that he had held useful talks with senior US officials besides meeting functionaries of the US Exim Bank, USAID and the chief of the National Security Council's economic wing.
Aziz said the Bush administration had decided to offer $300 million each as part of the military and economic assistance programme for Pakistan.
"Then, additionally, they have approved $101 million development assistance for health, education, narcotics control and law enforcement," he said.
Aziz said $480 million of Pakistan's $2 billion owed to the US would be written off this year for which a broad understanding had been reached between the two countries.
He said the US Exim Bank had decided to open credit facilities for American investors to help them do business with Pakistan's public sector.
"US investors appear keen to invest in the power sector and undertake some railway projects for which the Exim Bank will extend the required guarantees," he said.
© Hindustan Times Ltd. 2004.