WASHINGTON, Oct 13: The Overseas Private Investment Corporation (Opic), a US government agency, has decided on a “series of extraordinary measures” to help Pakistan, including a $300 million special line of credit.

This was announced by the corporation following a meeting here on Friday afternoon between Opic President Dr Peter Watson and Finance Minister Shaukat Aziz, who was due to fly home on Saturday evening after cutting short a visit to Washington to be in Islamabad for Secretary of State Colin Powell’s trip.

Other Opic measures announced include financing and political risk insurance for US-sponsored projects affected by the war on terrorism; the availability of Opic loans to US non-governmental organizations currently assisting humanitarian efforts in Pakistan; and an updated bilateral agreement between the US and Pakistan enabling private insurers to co-insure developmental projects in Pakistan with Opic.

Opic has been prohibited from working with Pakistan because of the US nuclear-related and other sanctions, most of which have now been waived. Enabling legislation to permit waiving of democracy sanctions under Section 508 is also now in place. Dr Watson said on Friday Opic programmes were now “open for business in Pakistan”.

He said Opic would also participate in a task force with the US Export Import Bank and the US Trade and Development Agency to develop and coordinate the various initiatives.

Shaukat Aziz also held discussions with the World Bank, and his delegation will stay back to talk to the International Monetary Fund. Pakistan is interested in funds for the poverty growth reduction programme and relief from both international debt and its bilateral debt with the US.

Mr Aziz told Pakistani reporters at a reception for him at the Pakistan embassy on Friday night that apart from the World Bank and the IMF, he had managed to “touch all bases”, and talked to Deputy Secretary of State Richard Armitage, Deputy Secretary of Defence Paul Wolfowitz and senior officials in the treasury department. He said a consistent theme of his talks here was the question of how Pakistan saw things developing in relation to the Afghanistan crisis.

The finance minister would not name a figure for the aid Pakistan expected from the US, but said “whatever we get will be in the form of grants”. He said the real place to get debt relief was the Paris Club, and “what we’re looking for from them is an aggressive approach to this question” since it was a complicated matter and required bold initiatives.

Mr Aziz hoped that technical negotiations with the US on a financial package would be over in a week, and implementation should begin by the end of next month.

The minister also met with the president of the Export-Import Bank, which promised help with financing civilian aircraft. A PIA delegation is already reported to be in Washington for follow-up discussions. The national carrier has an aging fleet, and is anxious to acquire new planes.

At Opic, president Watson said: “We at OPIC see support of US investment in Pakistan as a clear demonstration of the Bush administration’s long-term commitment to Pakistan’s economic growth, one that will endure beyond the extraordinary circumstances we currently face. Pakistan’s economic development is surely a result we all support.”

Dr Watson detailed each of the special initiatives his organization is undertaking as follows:

Special line of credit: Opic will offer Pakistan an immediate special line of credit of up to $300 million to access Opic insurance and finance products for investment in Pakistan.

Project stabilization facility: Opic will extend political insurance and term loans or guarantees to existing, US business-sponsored projects facing loss of coverage or the inability to refinance existing, maturing debt as a consequence of the war on terrorism.