ISLAMABAD, Jan 16: Pakistan is likely to be offered another $600 million cash-in-grant by the United States to further help improve Islamabad’s foreign exchange reserves position.

Also, Germany, United Kingdom and Norway were considering converting their $500 million debt into social funding through swap.

US Under Secretary of State for Economic Affairs Alan P. Larson held an hour-long meeting with Finance Minister Shaukat Aziz here on Wednesday and assured him of new cash-in-grant along with additional market access to Pakistani goods in the United States.

Official sources told Dawn that during the meeting, which was also attended by Commerce Minister Razzak Dawood and Secretary Commerce Qamar Baig, additional cash-in-grant and new market access in terms of higher quotas were discussed between the finance minister and Mr Larson.

“Mr Larson told Shaukat Aziz that his government is actively considering offering preferential treatment to Pakistani exports,” an official said.

He said the US under secretary of state for economic affairs informed the finance minister that the Trade Promotion Authority Bill had been adopted by the House of Representatives, which would soon be cleared by the US Senate after which Pakistan would be provided increased market access as well as new cash-in-grant.

Earlier, the United States had provided roughly one billion dollar to Pakistan which also included $600 million cash-in-grant for having supported US-led coalition to combat terrorism.

Mr Larson also informed the finance minister that the US had decided to forge increased trade and economic relations with Pakistan for which a high-level delegation comprising members of Overseas Private Insurance Corporation, Exim Bank and Trade Development Authority would be visiting Pakistan in February.