WASHINGTON, April 3: The US State Department has rejected speculations that President George Bush is having second thoughts about designating Pakistan a major non-Nato ally.

We are currently processing the formal request for the designation, said the State Department in a statement issued on Friday evening.

Explaining the status of the Bush administration's move, the State Department recalled that US Secretary of State Colin Powell announced in Islamabad on March 18 he would recommend to President Bush that the United States recognize Pakistan as a major non-Nato ally.

The State Department said that two more steps have to be taken before Pakistan can be formally inducted into the community of major non-Nato allies: - President Bush has to make a formal determination - And he has to inform the US Congress that Pakistan will be designated a major non-Nato ally.