Just as Egypt received 5 billion in debt relief for joining the Gulf War coalition against Iraq, Pakistan, the only Muslim country on board for the War on Afghanistan is also now recieving debt relief.

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U.S working on plan for Pakistan's debt relief: Official

Islamabad -- U.S Under Secretary for Economic, Business and Agriculture Affairs Alan Larson has assured that Washington is in consultations with Pakistan and other creditors to tailor a program for Pakistan that fits its needs, interest, opportunities and its debt profile.

Avoiding direct answer about waiving of Pakistan's debts on the pattern of Egypt, at the time of Persian Gulf war, the U.S. under secretary said Washington is in consultations with Pakistan and other creditors to tailor a program for Pakistan that fits its needs, interest, opportunities and its debt profile.

He said the United States is trying to be flexible about the modalities so that the relief is immediate, lasting and has a sustainable approach to Pakistan's debt.

Larson said he has come to Pakistan on the direction of President Bush for developing long-term cooperative arrangements with Pakistan.

He said that he discussed with Pakistani finance minister on how to put together a sustainable package of measures to support the strong economic reform program of Pakistan, the support that Pakistan can get from international financial institutions, other bilateral donors including the United States, debt relief package as well as market access and to promote private investment.

Larson pointed out that during the last few weeks the U.S. government has moved for normal economic relations with Pakistan and bilateral economic assistance as well as to encourage other donors to extend economic assistance to Pakistan. The United States is actively supporting Pakistan's negotiations for a new agreement with the IMF.

The U.S. under secretary said they want to mobilize international community behind a generous treatment to Pakistan once new IMF agreement has been concluded.

He said his priorities are to work with Pakistan to stabilize and enhance Pakistan's trade relations with the United States. The U.S. government is looking at new measures to increase access of Pakistani products in U.S. markets. As an immediate step, the United States is restoring some of the benefits under General System of products (GSP) and was working with Congress to extend new GSP benefits for certain products.

He said the United States is committed to remove quotas on other textile related products. In addition, they are working with Congress to consider ways to stimulate Pakistan's major exports.

Meanwhile Pakistan Finance Minister Shaukat Aziz told newsmen Pakistan is having bilateral discussions with donors for fiscal support, revival and enhancement of aid, debt relief, market access and support with the international financial institutions.