Shaukat Aziz promises a debt write-off

Mr. Aziz said at the weekend that his country was "in the process" of billing Washington $300m for logistical support up until the end of January. After that, the country will issue monthly bills that will average $60m, he added.

Pakistan will charge the US for fuel, food, water, transportation, repairs and other services provided to the American forces in Afghanistan.

Investors' comeback

Meanwhile, the US Overseas Private Investment Company said it had approved projects in Pakistan worth $200m as part of a plan aimed at boosting local industry and attracting foreign investors.

The money will be used to fund energy, software and gas projects, OPIC said.

Washington rewarded Pakistan's support to the US-led campaign

More investment projects are expected to be discussed during a two-day conference organised by the International Chamber of Commerce.

The meeting, which is due to conclude on Monday, is taking place in Karachi, Pakistan's main commercial hub.

Most overseas investment and loan programmes in Pakistan were stalled after creditor nations slapped sanctions on the south Asian country in the wake of controversial nuclear tests in 1998.

Islamabad's commitment to providing overall support to the Washington-led war against terrorism persuaded other countries to lift the sanctions, clearing the way for a fresh round of loans, investments, and debt write-offs

The International Monetary Fund and the World Bank also welcomed structural and fiscal reforms, implemented in the past two years.

The international finance agencies have resumed a loan programmes stalled after a military coup in October 1999.

Foreign aid is of critical importance to Pakistan's struggling economy, hit hard by the war in Afghanistan.

Pakistan's central bank has downgraded its economic growth target for the year to 30 June by 1% to 3%.