TOKYO, Oct 25: Japan may lend Pakistan as much as 100 billion yen ($814 million) to reward the government of General Pervez Musharraf for its support of US-led military strikes in Afghanistan, the es Japan Times reported on Thursday.

The Japanese government is expected to make a decision on the sanctions as early as Friday, local media said.

Japan froze all new loans and grants except for humanitarian aid after Pakistan and India conducted nuclear tests in 1998.

Japan is also considering lifting sanctions against India.

The new lending to Pakistan is likely to be in long-term loans carrying low interest rates, the English-language newspaper said, citing government sources. The sources did not say whether the loans would be extended immediately, the newspaper said.

“We cannot deny the possibility of extending new loans, but that is only one of many options we are studying now,” a Japanese Finance Ministry official said.

The official said there had been no discussion on a specific amount.

Following Islamabad’s decision to support the US-led coalition’s campaign against terrorism, Tokyo said it would give loan. —Reuters