Washington: The Bush administration is to impose economic sanctions on a Pakistani company, the A Q Khan Nuclear Research Institute, for buying Nodong medium range missiles from North Korea, media reports quoted senior officials as saying.

Sanctions have also been imposed on a North Korean firm that reportedly delivered the Nodong missiles, the officials told the 'Washington Post', adding that the move was aimed at squeezing North Korea and the buyers of its military hardware as well as warning Pakistan, though its help to US is deemed essential to the battle against the al-Qaida terror network.

The administration, an official said, chose not to impose sanctions on the Pakistani government after a strong debate in which the wisdom of imposing sanctions against Pakistani government while it conducts joint operations against the terrorists.

The official explained, "Everybody agreed that, in terms of the penalties you impose, none of the penalties should have an impact on Operation Enduring Freedom (war against terrorism in Afghanistan).

The Khan Institute is home to Pakistan's nuclear programme, but is technically separate from the government.

Secretary of State Colin Powell notified Musharraf last week of the sanctions, which prohibit the Institute from doing business with US government or American companies for two years.

Although Pakistan government reportedly paid for the missiles by transferring nuclear weapons technology to the North Korean government, the US is, at least for now, looking the other way and not imposing any sanctions required under US law, the 'Post' said.

PTI