NEW YORK, Sept 13: The United States is paying $300 million to Pakistan to meet the expenses incurred during the US-led war on terror in Afghanistan, a Pakistani official said on Friday.

The decision of payment was finalized at a meeting between US President George W. Bush and President Pervez Musharraf here on Thursday evening.

Pakistan’s ambassador to the United States, Ashraf Jehangir Qazi, told a news briefing here that participation in the Operation Enduring Freedom had cost Pakistan more than $700 million and said the rest would also be reimbursed soon.

“Budgetary allocation has already been made and $300 million will be paid soon,” he added.

Pakistan provided five air bases to the United States in the beginning of the US military offensive in neighbouring Afghanistan. The US forces are still using at least two of them.

Qazi said the two presidents also discussed an economic package for Pakistan but did not give details.

He said Musharraf also discussed the problems of Pakistani community living in the United States with Bush, who assured that the current operation against illegal immigrants was not directed against Pakistanis.

Musharraf, the ambassador said, also raised the issue of student visa for Pakistani nationals wanting to study in US universities. President Bush assured Musharraf that Pakistani students were not treated as suspects but had to face certain problems because the US was reviewing its entire system of security.

“Within next few weeks, we will be able to resolve this issue. Pakistani students will be able to study at American universities without losing the academic year,” he added.

US Secretary of State Colin Powell, National Security Adviser Condoleeza Rice, US Chief of Staff and other senior American officials accompanied Bush during the talks.

The Pakistani team included Finance Minister Shaukat Aziz, Minister of State for Foreign Affairs, Inamul Haq, legal adviser Sharifuddin Pirzada and ambassador Qazi.