September 5, 2002	Thursday	Jamadi-us-Saani26,1423

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ISLAMABAD, Sept 4: The $1 billion debt write-off, increased budgetary support and the supply of military equipment, including spare parts for F-16 aircraft, will be the main topics of discussions between Pakistan and America during President Gen Pervez Musharraf’s visit to the United States.

Official sources said on Wednesday that the president would fly from Lahore on Sept 7 on a regular PIA flight to New York and return to Islamabad on Sept 12.

The issue of the writing off of $1 billion US debt, out of a total of $3.2 billion loan, will be settled during the president’s visit. The Bush administration has included the removal of $1 billion debt in the 2002-03 budget, usually called as “O3”.

Pakistan had earlier been offered roughly $900 million assistance by the United States which also included $600 million budgetary support. Sources said the government was expecting to have similar $300 million support for the current financial year. This support would include assistance to be offered under the USAID programme.

Sources said that during bilateral talks in New York the issue of American investment would also be discussed. The US Overseas Private Insurance Corporation has kept $300 million limit for the American investment in Pakistan.

Pakistan will also be seeking additional market access for its textiles. “We will ask them to offer considerable quota for our textiles instead of getting their tariff lowered,” an official said. “In case Pakistan asks for reduced US tariff then various lobbying groups will turn against us and that is why we plan to get more market access for our goods,” he added.

Sources said that Pakistan had also been given to understand that it would soon be having C130 aircraft, details of which would be finalized during the president’s visit.

The issue of long-awaited spare parts for F-16 aircraft would also be discussed as well as other defence matters.