The US wrote a cheque to Pakistan for $600 million in aid, yet another reward for a decision by President Pervez Musharraf to back US President George W Bush's declared war on terrorism. The memorandum of understanding signed on Thursday was for a total of $600 million along with the rescheduling of $39 million debt, officials said at the signing ceremony.
"In order to support the government reform agenda and to mitigate the impact of the economic downturn on Pakistan's economy, we are providing today $600 million in direct budget and balance of payments support to the government of Pakistan," a US embassy statement said in Islamabad.
That included $73 million for border security funds, a $300 million line of credit for investment promotion from the Overseas Private Investment Corporation, $15 million in refugee assistance, $34 million to combat drugs, and $6.5 million in anti-terrorism funds, it said.
In addition, they signed an agreement to reschedule $39 million government-to-government debt owed by Pakistan to the US.
The US has already rewarded Pakistan for its help in the war against terrorism, doling out $100 million in economic assistance and rescheduling $396 million in debt.
Islamabad is seeking far more, including new loans from the International Monetary Fund and greater access to the US market. Bureau Report