ISLAMABAD, Jan 19: The Canadian government has decided to convert Pakistan’s entire debt of 447 million Canadian dollars into grant for development.

This was disclosed by the Canadian Deputy Prime Minister, John Manley, during a meeting with President Pervez Musharraf here on Saturday.

Both leaders discussed Pakistan-Canada relations, situation in neighbouring Afghanistan, besides regional and international issues.

“The two sides discussed regional and international issues with particular emphasis on Afghanistan and relations between Pakistan and India,” a foreign ministry official said.

Economic cooperation between the two countries and various other matters also came up for discussion.

During the meeting, President Musharraf asked Canada to allow improved access for Pakistan exports - especially textiles - to the Canadian market.

Mr Manley appreciated the efforts being made by the government to improve economic and fiscal management as well as good governance.—Agencies