ISLAMABAD, Feb 20: Pakistan has decided to convert all its $100 million loan into grant for Afghanistan to help build infrastructure projects there specially Kabul-Jalalabad road.

A meeting of the “Afghan Committee” presided over by Deputy Chairman Dr Shahid Amjad Chaudhry was informed here on Thursday that Pakistan, which pledged $100 million assistance (50 per cent loan and 50 per cent grant) in 2001, has now been fully converted into grant to financially help Hamid Karzai government in Afghanistan.

Official sources told Dawn that during the meeting, which was also attended by the secretaries of all the economic ministries, it was decided that instead of exporting wheat and other commodities free of cost, it would be good to help build infrastructure in Afghanistan. So was decided that $100 million assistance should be extended for the development roads specially Kabul-Jalalabad road.

Sources said the participants of the Afghan Committee agreed with its Secretary Dr Pervez Tahir that the ministry of finance should release the amount of Rs10m for undertaking the feasibility study of building the Kabul-Jalalabad road.

The participants agreed that Pakistan should help for some “visible projects” so that the life of common Afghan could be improved in Afghanistan. It was also decided in the meeting to offer $20m to Afghan government during 2003, sources said.

Earlier, Pakistan had disbursed $10m in 2002. The amount of $100m will be disbursed in five years.

The meeting was of the view that when the international donors were not adequately extending financial support, out of their $4 billion committed in 2001 at Tokyo, Pakistan should provide all possible support to the Afghan government.

Sources said President Gen Pervez Musharraf has directed the Afghan Committee to accelerate the process of extending financial and other commodity assistance to Karzai government.