WASHINGTON, July 25: The reported construction of a nuclear reactor in Khushab will not affect the $5.1 billion arms deal the Bush administration has offered to Pakistan despite demands from lawmakers to cancel the same, a US government official told Dawn.

The official, who spoke on condition of anonymity, said he was aware of the demands but did not see the reported construction of a nuclear reactor affecting the arms deal that also features F-16 fighter jets.

He said the report about the construction of “a new nuclear reactor” in Pakistan would also have no impact on the Indo-US nuclear deal initialed in March.

“The deal with India is about civilian nuclear power and this is a nuclear reactor. They are completely different issues,” he said.

Describing the timing of the release of report on reactor as “significant”, diplomatic observers here noted that it raises fresh concerns about an arms race in South Asia.