ISLAMABAD, Nov 10: Italy has decided to adjust a $120 million-loan it had given Pakistan to earthquake relief assistance, Italian Deputy Foreign Minister Margherita Boniver announced here on Thursday.

Already $70 million out of the $120 million-loan has been adjusted to relief assistance, the Italian deputy foreign minister told reporters here. Ms Boniver said the rest of the amount would also be converted into aid.

She offered to train Pakistanis in disaster management so that they would be able to effectively handle the post-quake situation in future.

She said Pakistan and Italy would hold bi-annual consultative meetings at the political level.

Earlier, Pakistan and Italy agreed to expand cooperation in the fields of culture, science, technology, sports and youth affairs by expanding youth exchange delegations, cultural troupes, study tours, sports events and other relevant initiatives.

Ms Boniver and Mohammad Ali Durrani, the minister of state for culture, sports and youth affairs, signed an agreement to this effect on Thursday.

Culture Secretary Jalil Abbas, Additional Secretary Khalid Saeed Haroon and other high-ranking officials were also present on the occasion while the ambassador and other senior Italian diplomats accompanied the Italian deputy foreign minister.

Talking to reporters, Mr Durrani said that the treaty was the fruit of bold initiatives taken by Prime Minister Shaukat Aziz during his recent visit to Italy. He said Mr Abbas had visited Italy and made praiseworthy efforts to finalise the details of the agreement.

He said the recent deed would replace the 1975 treaty between the two countries.

He said due to the untiring efforts of President Pervez Musharraf and Prime Minister Shaukat Aziz, Pakistan was emerging as an enlightened and progressive country in the comity of nations and the world wanted to cement cordial relations with it.

Mr Durrani said that both Italy and Pakistan have agreed to form a joint committee which would approve long-term policies to ensure the implementation on the deed.