US cancels $495.3m Pakistani debt

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http://www.dailytimes.com.pk/default...7-7-2004_pg1_3

By Zamir Haider

ISLAMABAD: The governments of United States and Pakistan on Friday signed a debt cancellation agreement worth $495.3 million in official government-to-government debt owed by Pakistan to the United States.

Dr Waqar Masood Khan, secretary Economic Affairs Division (EAD) and Ms Nancy J Powell, US ambassador to Pakistan, signed the agreement on behalf of their respective governments.

“This agreement marks a continuation in the United States’ partnership with the government and people of Pakistan,” Ms Powell said on the occasion. She said that her government’s continued commitment to Pakistan was a vote of confidence in the economic stewardship of the Pakistani government and the intelligence, energy, and resourcefulness of the Pakistani people.

Ms Powell said that agreement culminated an extraordinary period of debt relief and emergency financial assistance that included a $600 million cash transfer in November 2001 for balance of payments and budget support, the August 2002 rescheduling of the entire stock of $3 billion of bilateral official debt over 38 years, and the April 2003 elimination of $1 billion in bilateral debt. “With today’s debt cancellation agreement amounting to $495.3 million, the total outstanding US debt (including non-Official Development Assistance) debt) will amount to $1.6 billion,” Dr Waqar Masood said.

Here comes Osama?