US to write-off Pakistan's $460 million debt

Dawn ^ | 3/19/2004 | By Our Staff Reporter

[AM2000]

Agreement for $460m write-off next month

ISLAMABAD, March 18: The United States would sign a formal agreement with Pakistan in April to write off its $460 million debt under the previously-agreed US financial assistance package.

This was agreed to here on Thursday during a meeting between US Under Secretary of State for Economic Affairs Alan Larson and Finance Minister Shaukat Aziz.

Mr Larson also informed the minister that the US Exim Bank had upgraded Pakistan's rating which would mean that the bank will offer expanded financing facility to Pakistan's public-sector entities.

An official statement said Mr Larson also assured of continued US financial and technical assistance in the implementation of reforms programme in Pakistan. He also praised the "rapid and exemplary achievements" on the economic front and stated that if the reforms stayed on course, Pakistan was poised to develop its economy in the same fashion as some East Asian countries had.

Finance Minister Shaukat Aziz welcomed the opening of Exim Bank financing for Pakistan and the increased overall cooperation between the two countries.

Aziz also updated Mr Larson on the developments in the economy of Pakistan. He mentioned that the economy was likely to achieve a high growth rate and appreciable increase in per capita income.

A press release of the US Exim bank said it will offer expanded financing opportunities for US exports to the public sector in Pakistan. This financing will now be available to support Pakistan's purchases of the US equipment and services where repayments of the financing are assured by the sovereign guarantee of the Pakistan government.

[O.C. - Old Cracker]

If the Paki's can help us get Osama, then I say give them what they want.

[BrooklynGOP]

Then again, it wouldn't be in their interest to catch him if we keep giving them whatever they want...

[johnfrink]

I agree to a point--the problem is that the Pak ISI was pretty much responsible for much of the creation of Al Qaeda, so I worry a bit that this sends the message: if you start a terrorist organization, we'll pay you to shut it down.

[VaBthang4]

Dopians'll hate this.

That's cool though. Liberals'd just spend it on some other flight of fancy.

They're [Pak] tightening up on stuff for us.

[Rebelbase]

I figgered it were gonna be some kinda horse tradin' going on to get them Pak fellers to help out.

[Cap Huff]

FYI. These be nice, be very nice actions have been very public in the last few days. There is a great deal going on way under the surface.

[traumer]

I'd wait for the capture to be finalized...

[traumer]

I'd wait for the capture to be finalized...

[O.C. - Old Cracker]

It's the old, 'trust but verify'. As much as I love this country, entering into any kind of agreement with our government is risky. Imagine entering into an agreement with a largely Muslim nation.

[Dog]

There is something happening here.....these are very public actions......what are the Pakistanis giving us in return.

[cwb]

It's definitely a concern...and we always have to worry about any kind of "blowback." Heck, one bullet to the head of Musharaf and things could turn on a dime. However, if they are being open and transparent, go for it and take advantage of even this momentary alliance. We'll never no unless we try...and hopefully, this alliance will yield quick and positive changes that others will see and welcome.

[swarthyguy]

Would've been cheaper to declare war on Pakistan.

[O.C. - Old Cracker]

These be nice, be very nice actions have been very public...

Hey, I don't mean to be rude, but are you okay?

[O.C. - Old Cracker]

Would've been cheaper to declare war on Pakistan.

And the Indian government response: We are taking Kashmir now, thank you very much.

[johnfrink]

I agree, and know that money greases the wheels (and everything else) in that part of the world--I just hope we're making sure they comply, rather than just take their word that they'll behave.

[Shermy]

Don't sign until the "Zawahiri in Waziristan story" is verified!

Mushy is one smart fellow...

[AM2000]

what are the Pakistanis giving us in return

Cool news articles about choppers dropping bombs on "hundreds" of militants.

[swarthyguy]

Imagine if he'd been an outsourcing executive.

[Cap Huff]

I'm not sure what you mean, but what I was suggesting is that this debt deal is announce right now right after Powell was there for a visit, and at the same time Powell voiced support for non-NATO ally status for Pakistan. Very visible, and very positive for Musharraf.

At the same time there was also a very public visit that Mushi paid to Saudi Arabia, about 8 or 9 March when some very high honor was shown to Mushi. This may all be wrapped up in the A.Q. Khan thing.

I'm just thinking some of our close Pakistan watchers might have some theories/informed speculation.