M A I N   N E W S

$ 600 m US aid for Pakistan

US Ambassador to Pakistan Wendy Chamberlin (R) fixes her glasses alongside Pakistani Finance Minister Shaukat Aziz during a signing ceremony in Islamabad on Thursday. The USA formally agreed to give Pakistan $600 million in aid, yet another reward for a decision by President Pervez Musharraf to back US President George W. Bush's declared war on terrorism. — Reuters photo

Islamabad, November 15
The USA wrote a cheque to Pakistan for $ 600 million in aid, yet another reward for a decision by President Pervez Musharraf to back US President George W. Bush’s declared war on terrorism.

The memorandum of understanding signed today was for a total of $ 600 million along with the rescheduling of $ 39 million debt, officials said at the signing ceremony.

“In order to support the government reform agenda and to mitigate the impact of the economic downturn on Pakistan’s economy, we are providing today $ 600 million in direct budget and balance of payments support to the Government of Pakistan,” a US Embassy statement said.

In addition, the USA gave $ 73 million for border security funds, a $ 300 million line of credit for investment promotion from the Overseas Private Investment Corporation, $ 15 million in refugee assistance, $ 34 million to combat drugs, and $ 6.5 million in anti-terrorism funds, it said.

The USA has already rewarded Pakistan for its help in the war against terrorism, doling out $ 100 million in economic assistance and rescheduling $ 396 million in debt.

Islamabad is seeking far more, including new loans from the International Monetary Fund and greater access to the US market. Reuters