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October 9, 1998

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US, Japan set terms to ease sanctions on Pakistan

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Japan and the United States have asked Pakistan to pass a law banning the transfer of nuclear and fissile materials to a third country before they ease sanctions on new multilateral loans and liberalise the conditions set by the International Monetary Fund.

The IMF has agreed to reactivate the suspended ESAF-EFF programme and disburse $592.99 million in 1998-99, sources said.

The decision on the modalities to resume lending is likely to be taken by the IMF's executive board, due to meet next month.

UNI

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