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February 15, 2002
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Friday
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Zilhaj 2, 1422
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US pledges $1 billion debt relief: Linked to anti-terrorism, fair polls & de-escalation
By Tahir Mirza and Masood Haider
WASHINGTON, Feb 14: President George Bush announced on Wednesday an economic package for Pakistan, including a proposal to Congress for $1 billion in debt relief, additional $100 million for education and $142 million in increased market access for Pakistani apparel exports.
This is the first substantive outcome of Pakistan’s pledge of support for the United States-led coalition since the Sept-11 attacks and comes as the culmination of President Gen Pervez Musharraf’s first official working visit to Washington which ended on Thursday.
But the $1 billion debt write-off out of a total Pakistani bilateral debt of $2.8 billion is conditional on legislative approval, and the chairman of the powerful Senate Foreign Relations Committee, Mr Joseph Biden, has outlined tough caveats, including genuinely fair elections and reducing tensions with India.
Talking to reporters after meeting President Musharraf on Capitol Hill, Mr Biden said: “I and my colleagues on the committee are committed to significant debt relief in the order of one billion dollars for Pakistan this year as well as opening discussions about the way in which we can increase exports to the United States.”
Support was real and broad both within the administration and in Congress, Mr Biden added, but was also “premised upon three things: one, genuine, fair, open elections in October; secondly, assuming that he (Musharraf) will continue to be committed in dealing with eradicating extremists in Pakistan and cooperating with us on terrorists who may be infiltrating into and out of Pakistan; and, thirdly, de-escalate the situation on the borders with India.
“We want good faith efforts on all fronts being pursued by Mr Musharraf. We now believe that is the case.”
Discussing the US assistance programme announced by the White House shortly after the Musharraf-Bush meeting on Wednesday, Finance Minister Shaukat Aziz told a press briefing in the evening that the package would further enhance Pakistan’s credibility on the international market and could possibly expand further.
Ambassador Maleeha Lodhi described the White House meeting with President Bush, which was also attended by Vice-President Richard Cheney, as being extremely productive.
The measures announced by the US are expected to quell some of the criticism in Pakistan that the Bush administration has not been responsive enough to Pakistan’s solid cooperation in the campaign in Afghanistan. But, despite the friendly words and the undoubtedly warm welcome given to Gen Musharraf in Washington, it is also clear that the administratio
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