OTTAWA, Oct 1: Canada said on Monday it was lifting almost all its economic and political sanctions on Pakistan as a reward for Islamabad’s decision to support a United States-led campaign against global terrorism.

Foreign Minister John Manley and International Aid Minister Maria Minna said in a statement that Ottawa would also forgive up to C$447 million ($283 million) in outstanding loans on the understanding that Pakistan used the money on development projects.

Only the ban on military exports will remain and existing restrictions on military sales to India will stay in place.

Minna said Pakistan had 43 outstanding loans with her department totalling C$447 million. —Reuters